How is net salary calculated from gross salary?
The employee's social security (SGK) contribution (14%) and the employee's unemployment insurance contribution (1%) are first deducted from the gross wage; the remaining amount is the income tax base. Income tax is calculated on the cumulative tax base accumulated since the beginning of the year, using the tariff for employment income. The income tax corresponding to the minimum wage is then deducted as an exemption. Stamp duty is 7.59 per mille of the gross wage, and the portion corresponding to the minimum wage is likewise exempt. The net wage is found by subtracting these deductions from the gross wage.
Legal basis and 2026 parameters
The contribution rates are based on Social Security Law No. 5510 and Unemployment Insurance Law No. 4447; the income tax tariff on Income Tax Law No. 193 (GVK), Article 103; and the minimum wage exemption on GVK Article 23/18 and the Stamp Duty Law. For 2026, the gross minimum wage is 33,030 TL and the upper limit of earnings subject to SGK contributions is 297,270 TL. Depending on the incentive available, the employer's SGK share can be selected as 16.75%, 19.75% or 21.75%; the employer also pays a 2% unemployment insurance contribution.
Worked example
For a gross wage of 60,000 TL, the employee's SGK contribution is 8,400 TL, the employee's unemployment contribution is 600 TL and the monthly income tax base is 51,000 TL. In January, after the minimum wage exemption is deducted from the calculated income tax, the income tax payable is 3,438.68 TL and the stamp duty is 204.70 TL. The net wage for January is 47,356.62 TL. As the cumulative tax base moves into higher brackets, the net wage decreases, falling to 42,640.40 TL in December. With the 5-point reduction, the monthly cost to the employer is 71,250 TL.
For details on payroll, incentives and SGK procedures, please see the accounting and payroll services page.