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Written by: Partner Lawyer Ekrem Can NARIN | Reviewed by: CPA Utku Mete TURKOGLU
Managing payroll in Turkey can be complex. Navigating continuously evolving laws, regulations, and incentives demands significant expertise. Outsourcing payroll services ensures compliance, boosts operational efficiency, and lets your business concentrate fully on strategic growth. At CKAY Law Firm, our experienced and English-speaking team delivers tailored Turkish payroll solutions that perfectly align with your global needs and local compliance requirements. Our team demystifies local payroll regulations for foreign investors new to Turkey and handles all compliance from day one.
Payroll management in Turkey involves navigating intricate regulations, from Labor Laws to relevant Tax Legislation, making in-house payroll processing challenging and resource-intensive. Outsourcing payroll relieves your company of these administrative burdens, offering substantial cost savings, improved accuracy, and greater compliance assurance.
CKAY’s payroll services in Turkey cover every aspect of employee remuneration — from salary calculations to social security declarations, always ensuring alignment with Turkish Law. Our strategic legal guidance helps companies fully leverage available incentives, optimize payroll processes, and eliminate costly compliance risks.
So, what are the key benefits of outsourcing payroll services? Let’s find out.
Managing payroll internally can rapidly escalate overheads due to hiring dedicated HR teams, specialized expensive software, and continuous staff training. CKAY’s payroll outsourcing significantly reduces these costs, freeing capital and resources for your core business activities.
By entrusting payroll management to our expert team, your business can refocus valuable internal resources on strategic operations, ultimately enhancing overall productivity and competitive advantage.
Payroll errors can result in severe financial and legal repercussions. Our specialists leverage advanced payroll systems and extensive legislative knowledge to ensure error-free payroll processing, safeguarding your business from compliance issues.
All payroll operations are reviewed through a dual lens — legal and financial — by our cross-functional team, delivering holistic compliance.
Payroll information demands strict confidentiality. CKAY implements robust security measures, ensuring your sensitive employee data is protected from unauthorized access and maintaining complete confidentiality at every stage.
Whether expanding or downsizing, our payroll solutions adapt seamlessly to your changing business requirements, ensuring continuous compliance and operational flexibility.
Managing payroll internally (in-house) can seem like a cost-effective solution at first glance, but it often leads to hidden challenges and significant risks. In-house payroll processing requires:
These responsibilities not only increase operational costs but also expose your business to potential liabilities. In contrast, outsourcing payroll to CKAY offers a strategic advantage:
This professional outsourcing model leads to substantial cost and time savings, while ensuring your payroll function remains compliant, efficient, and stress-free, making it a far more compelling choice for foreign businesses in Turkey.
What are the payroll outsourcing services offered by CKAY in Turkey?
Our precise payroll management services handle all remuneration components, including salaries, overtime, bonuses, commissions, and allowances, accurately reflecting each employee’s total earnings in line with Turkish Labor Regulations.
CKAY calculates and administers statutory deductions including income taxes, social security institution (SGK), health insurance premiums, and stamp taxes. We also prepare and submit timely compliance reports required by Turkish authorities.
The Turkish government regularly introduces payroll-related incentives to encourage investment. Our Turkish and English-speaking experts evaluate employee eligibility, apply appropriate incentives, and deliver comprehensive reports that maximize your financial returns and minimize payroll expenses.
CKAY manages payroll across the entire employment cycle — from new employee onboarding through to termination. We provide strategic advice on Turkish Labor Law compliance, reducing risks associated with employee dismissals, benefit entitlements, and payroll adjustments.
To ensure clarity and ease of use, we generate comprehensive payroll reports available in Turkish and English. This multilingual capability streamlines internal communication for international businesses operating in Turkey.
CKAY simplifies your payroll operations in Turkey through a clearly structured and fully managed process. Here’s how we handle everything on your behalf:
🏢 1. Initial Setup
Company and employee registrations with the relevant tax office and Social Security Institution (SGK), including legal onboarding documentation.
📊 2. Monthly Payroll Calculations
Accurate computation of gross and net salaries, including overtime, bonuses, allowances, and applicable deductions in line with Turkish Labor and Tax Law.
📝 3. e-Declarations & Compliance Filings
Timely submission of all required government declarations via official systems such as e-Beyanname (tax) and e-Bildirge (SGK), ensuring full legal compliance.
🌐 4. Multilingual Payroll Reporting
Issuance of monthly payroll reports, payslips, and summaries in both Turkish and English to ensure transparency and clarity for international clients.
⚖️ 5. Ongoing Legal & Regulatory Monitoring
Continuous monitoring of changes in Turkish payroll legislation. We proactively update calculations, reports, and processes to reflect new legal requirements.
Turkish payroll is governed by complex regulations involving various tax obligations, social security contributions, and Labor Law requirements. Companies must adhere strictly to rules regarding employee classification, salary payments, deductions, and statutory reporting.
Payroll calculations are always based on the gross salary. As of 2025, the gross minimum wage in Turkey is TRY 26,005.50 per month. Net salary is derived after deducting income tax, social security institution (SGK), and stamp tax.
All related declarations, including income tax and social security filings, must be submitted electronically via official systems such as e-Bildirge (online social security filing) and e-Beyanname (online social security filing), in line with Turkey’s digital transformation mandates.
Payroll taxes in Turkey include progressive income tax rates (15% – 40%) and stamp tax (0.948% of gross salary). CKAY ensures accurate tax calculations, compliance with evolving regulations, and timely submissions to tax authorities, protecting your business from penalties.
In addition to core tax filings, CKAY also prepares and submits the unified “Muhtasar (withholding tax return) and SGK (social security institution)” monthly declaration, ensuring seamless legal compliance. It’s worth noting that, as of 2022 legislation, no stamp tax is applied to employees earning the minimum wage. This exemption continues to be valid in 2025.
Both employers and employees contribute to Turkey’s social security system. Employer contributions are approximately 22.75% of the employee’s gross salary, while employee contributions are about 15%. CKAY accurately calculates, manages, and reports these payments, including any applicable reductions.
We also advise clients on incentive schemes such as the SGK (social security institution) 6111 and 17103 premium support programs, which can reduce employer social security costs by up to 5%. Our legal team actively monitors eligibility and applies these incentives on your behalf.
Employees in Turkey are classified as full-time, part-time, or temporary, each category having specific regulations for compensation, work hours, and leave entitlements. CKAY’s payroll specialists help businesses correctly classify employees and ensure compliance with all benefit regulations.
CKAY also provides full support for onboarding and exit procedures, including preparation of employment contracts, SGK (social security institution) registration notices, termination protocols, and severance/notice compensation calculations in compliance with Turkish Labor Law.
Turkey’s payroll legislation is widely regarded as one of the more complex in the EMEA region, governed by an evolving combination of Labor Law, Tax Law, Social Security (SGK), and data protection regulations. Missteps in any of these areas can result in:
This legal landscape demands more than routine payroll processing — it requires expert legal interpretation and real-time compliance management. At CKAY, our seasoned legal and payroll team ensures that your business:
By working with CKAY, you eliminate the guesswork and safeguard your business from unexpected penalties — a crucial layer of protection in a tightly regulated payroll environment.
CKAY Law Firm stands out in payroll outsourcing thanks to our deep-rooted expertise, innovative technological infrastructure, and commitment to excellence. We offer personalized, responsive service designed to meet the unique needs of international businesses operating in Turkey.
For multinational clients, CKAY offers bilingual communication, localized documentation, and integration with your global HR and finance teams, ensuring streamlined payroll coordination across borders. We bridge the gap between Turkish compliance obligations and international business expectations.
CKAY guarantees same-day responses to payroll inquiries, ensuring swift communication, efficient problem resolution, and uninterrupted payroll management.
Our payroll services aren’t merely transactional; we proactively analyze your payroll structure to suggest strategic improvements, ensuring maximum financial and operational efficiency.
Understanding Turkey’s intricate incentive schemes is crucial. CKAY provides expert insights to ensure your company benefits fully from available payroll-related incentives, significantly enhancing financial returns.
At CKAY, our legal and accounting teams work hand in hand to ensure that every payroll transaction complies not only with tax and social security regulations but also with broader labor and corporate law requirements.
This integrated approach minimizes compliance risks, prevents costly legal disputes, and ensures that your payroll operations are both financially accurate and legally sound.
Outsourcing payroll services in Turkey with CKAY Law Firm simplifies your payroll management, reduces operational risks, and ensures complete legal compliance. Our comprehensive, customized payroll solutions enable your business to maximize efficiency, benefit from strategic cost savings, and maintain focus on core operations. Connect with CKAY Law Firm today to transform your payroll processes and ensure seamless business operations in Turkey.
Outsourcing payroll eliminates the need for dedicated in-house payroll and/or HR teams, expensive software, and continuous training, thus significantly lowering your operational expenditures.
Absolutely. CKAY prioritizes strict data protection protocols and confidentiality measures, ensuring payroll data remains secure and compliant with Turkish Data Protection Laws.
Yes. CKAY manages payroll and compliance for both local Turkish employees and expatriates, ensuring adherence to Turkish immigration, labor, and tax regulations.
To run payroll in Turkey as a foreign company, you must first establish a legal entity such as a liaison office, branch, or subsidiary. You’ll also need a local tax ID, SGK (Social Security Institution) registration, and a Turkish bank account to process employee payments. CKAY handles the end-to-end setup, including registrations, employee onboarding, and compliance alignment, allowing you to operate without needing an internal HR infrastructure.
CKAY’s legal and payroll experts constantly monitor updates in Turkish Tax Legislation and Labor Law. When a relevant change occurs, such as shifts in income tax rates, incentive eligibility, or reporting rules, our team immediately implements the necessary adjustments in your payroll process. We proactively communicate any impact on your operations and ensure ongoing compliance, eliminating risks of penalties or legal exposure.
| Item | Rate / Description | Amount (₺) |
|---|---|---|
| Social Security Premium (Employee - SGK) | 14% | 7,000.00 |
| Unemployment Insurance (Employee) | 1% | 500.00 |
| Income Tax | ~20% after exemptions | 4,250.00 |
| Stamp Tax | 0.759% of gross salary | 379.50 |
| Total Deductions | 12,129.50 | |
| Net Salary | 37,870.50 | |
| Item | Rate / Description | Amount (₺) |
|---|---|---|
| Social Security Premium (Employer - SGK) | 20.5% | 10,250.00 |
| Unemployment Insurance (Employer) | 2% | 1,000.00 |
| Total Employer Contributions | 11,250.00 | |
| Total Cost to Employer | 61,250.00 | |
