What are the Payroll Statutory Deductions for Turkey in 2025 ?
In 2025 in Turkey, the key statutory deductions applicable in a standard Turkish payroll include social security premiums, income tax, and stamp tax. Salaries paid through liaison offices in Turkey continue to enjoy an exemption from income tax under Article 34/14 of the Income Tax Law, being subject solely to social security deductions.
Additionally, the income tax exemption introduced in 2024, equal to the tax deduction calculated on minimum wage salaries, remains applicable in 2025.
Social Security Premium
Social security contributions are calculated monthly and shared between the employee and the employer, as follows:
| Contribution Type | Employee Rate | Employer Rate | Total |
|---|---|---|---|
| Social Security Premium (SSI) | 14% | 20.75% | 34.75% |
| Unemployment Premium (SSI) | 1% | 2% | 3% |
| Total Without Discount | 15% | 22.75% | 37.75% |
| Total With Discount* | 15% | 17.75% | 32.75% |
* Employers meeting specific conditions outlined in Article 81(ı) of Law No. 5510 receive a 5-point reduction in the employer’s SSI premium rate. Employers failing to meet these conditions will continue to pay the standard rate of 20.75%.
SSI Base and Ceiling
For 2025, the base and ceiling for monthly social security contributions are as follows:
| Period | SSI Base (TRY) | SSI Base Ceiling (TRY) |
|---|---|---|
| 2025 | 26,005.50 | 195,041.40 |
Income Tax Liability in 2025
In Turkey the income tax operates on a cumulative system aligned with the calendar year. The applicable rate is determined based on the employee’s year-to-date income tax base, causing tax rates to increase progressively throughout the year as taxable income rises.
The following brackets apply to salary income for 2025, as outlined in Income Tax Communique No. 323:
| Income Range (TRY) | Rate (%) |
|---|---|
| 0 – 158,000 | 15% |
| 158,000.01 – 330,000 | 20% |
| 330,000.01 – 1,200,000 | 27% |
| 1,200,000.01 – 4,300,000 | 35% |
| Over 4,300,000 | 40% |
Income Tax Exemption
The exemption amount for income tax, equivalent to the calculated deduction on minimum wage salaries, remains unchanged from 2024.
Stamp Tax Liability
Stamp tax, levied at 0.759% as of January 1, 2015, is applied to gross earnings on payroll. The tax is calculated on the total gross earning and benefits from an exemption up to the minimum wage level introduced in 2023, which continues in 2025.
Minimum Wage Tax Exemptions in 2025
The updated minimum wage for 2025 also affects the exemption thresholds for income tax and stamp tax, as shown below:
| Month | Income Tax Exemption (TRY) | Stamp Tax Exemption (TRY) |
|---|---|---|
| January-July | 3,315.70 | 197.38 |
| August | 4,257.57 | 197.38 |
| September-December | 4,420.94 | 197.38 |
Sample Payroll Calculations for 2025
Net Minimum Wage Calculation (January 2025)
| Description | Amount (TRY) |
|---|---|
| Gross Minimum Wage | 26,005.50 |
| SSI Employee Contribution (14%) | 3,640.77 |
| Unemployment Employee (1%) | 260.06 |
| Net Minimum Wage | 22,104.67 |
Employer Cost Calculation
| Description | Amount (TRY) |
|---|---|
| Gross Minimum Wage | 26,005.50 |
| SSI Employer Contribution (20.75%) | 5,396.14 |
| Unemployment Employer (2%) | 520.11 |
| Total Employer Cost | 31,921.75 |
| With 5% Discount | 30,621.48 |
Sample Salary Calculation (50,000 TRY Gross)
| Description | Amount (TRY) |
|---|---|
| Gross Salary | 50,000.00 |
| SSI Employee (14%) | 7,000.00 |
| Unemployment Employee (1%) | 500.00 |
| Income Tax Base | 42,500.00 |
| Income Tax Payable | 3,059.30 |
| Stamp Tax | 182.12 |
| Net Salary | 39,258.58 |
Payroll Calculation Overview
Here’s a step-by-step summary of the payroll calculation process:
- Total Gross Earnings: Sum of base salary and benefits.
- SSI Contributions: Calculated as a percentage of gross earnings.
- Income Tax: Based on taxable income after SSI deductions.
- Stamp Tax: Calculated on gross earnings after exemptions.
- Net Salary: Total gross earnings minus all deductions.
As income accumulates during the year, employees may move to higher tax brackets, resulting in increased tax rates.
For more details on the 2025 minimum wage or Income Tax Communique No. 329, please refer to the official announcements (available in Turkish).
For any questions, contact your customer representative.