One of the most common questions employers ask when hiring foreign employees in Türkiye is how the total employment cost is calculated and how SGK (Social Security Institution) contributions are paid during the work permit process.
The example below is based on the 2026 gross minimum wage (TRY 33,030).
2026 Calculation Example
Gross Salary: TRY 33,030
Deductions from the Employee’s Gross Salary
The following statutory contributions are deducted from the employee’s gross salary:
- Employee SGK Contribution (14%): TRY 4,624.20
- Employee Unemployment Insurance Contribution (1%): TRY 330.30
Total Employee Contribution: TRY 4,954.50
This amount is not paid to the employee. It is deducted from the employee’s gross salary by the employer and paid to the Social Security Institution (SGK) on behalf of the employee.
In addition, income tax and stamp tax are calculated in accordance with the applicable legislation. After these deductions have been made, the remaining amount is paid to the employee as their net salary.
Employer Contributions
In addition to the employee’s statutory deductions, the employer is also required to pay the following contributions:
- Employer SGK Contribution (21.75%): TRY 7,184.03
- Employer Unemployment Insurance Contribution (2%): TRY 660.60
Total Employer Contribution: TRY 7,844.63
These contributions are paid entirely by the employer and are not deducted from the employee’s salary.
Total Employer Cost
| Description | Amount |
|---|---|
| Gross Salary | TRY 33,030.00 |
| Employer SGK and Unemployment Contributions | TRY 7,844.63 |
| Total Employer Cost | TRY 40,874.63 |
In other words, the employer’s total cost for employing one person is TRY 40,874.63. This amount is not paid entirely to the employee. A portion is paid to the employee as net salary, while the remaining amount is paid to the Social Security Institution (SGK) and the Tax Office in accordance with the employer’s legal obligations.
Where Are the Employer’s Payments Made?
The employer’s payments are distributed to three different recipients.
Employee: After all statutory deductions and taxes have been applied, the remaining amount is transferred to the employee’s bank account as their net salary.
Social Security Institution (SGK): The employer pays both the employee’s SGK and unemployment insurance contributions deducted from the salary, as well as the employer’s own SGK and unemployment insurance contributions.
Tax Office: Income tax and stamp tax are declared and paid to the Tax Office in accordance with the applicable tax legislation.
Why Is the Employer’s Cost Important for Work Permit Applications?
When applying for a work permit for a foreign employee in Türkiye, it is essential for employers to fulfil all SGK and tax obligations accurately and on time. Timely declaration and payment of social security contributions and taxes ensure legal compliance while protecting the employee’s social security rights.
RL Turkey provides professional consultancy services on work permits, employer obligations, and the employment of foreign nationals in Türkiye.
For more information about work permit applications in Türkiye, please visit our website.
