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Cost of doing business in Türkiye

The number most investors want is the fully loaded cost of an employee. Here it is for 2026, with the two changes this year that raised it.

Last verified August 2026

Labour cost: the 2026 minimum wage

The minimum wage is set annually and applied from 1 January. For 2026 there is a single rate for the year.

2026 minimum wage Monthly (TRY)
Gross 33,030.00
Net to the employee 28,075.50

The gross figure is also the SGK earnings floor — the minimum base on which social security premiums are calculated.

What the employer pays on top

Contribution Employee share Employer share
Social security (SGK) 14% 21.75% before discount
Unemployment insurance 1% 2%
Total 15% 23.75% before discount

A premium discount reduces the employer's rate where premiums are paid on time. From 1 January 2026 the discount is 2 points for non-manufacturing workplaces and 5 points for manufacturing, having previously been more generous for non-manufacturing employers.

For a non-manufacturing employer at the minimum wage, total monthly cost is therefore approximately TRY 40,200 — around 1.22 times gross salary. Manufacturing employers pay less because of the larger discount.

Other employment costs to budget for

  • Severance pay (kıdem tazminatı) — accrues at 30 days' gross wage per year of service, subject to a ceiling that is re-set twice a year. For a company that expects turnover, this is a real accruing liability, not a contingency
  • Notice pay — two to eight weeks depending on service, where notice is not served
  • Annual leave — 14 to 26 working days depending on seniority, plus paid public holidays
  • Overtime — paid at 150% of the hourly rate, capped at 270 hours a year
  • Stamp duty on payroll — 0.759% of gross

See the social security guide and the termination guide for how each is calculated.

Non-labour operating costs

Türkiye's competitive position for foreign manufacturers has historically rested on industrial electricity, natural gas, water and connectivity costs alongside labour. Those tariffs are regulated and revised frequently — the Energy Market Regulatory Authority resets electricity tariffs on a rolling basis, and industrial gas pricing tracks import costs.

We deliberately do not publish a tariff table here. A utility price list is out of date within months, and an investor sizing a plant needs a current quotation for a specific location and consumption profile, not a national average from a guide.

Organised industrial zone locations typically carry lower water, natural gas and telecommunications costs than equivalent sites outside a zone, along with property tax and municipal tax exemptions — see the investment zones guide.

The costs foreign investors under-budget

Three items regularly missing from an incoming investor's model:

Stamp duty on contracts. In most jurisdictions signing a contract costs nothing. In Türkiye it can attract duty of up to 0.948% of the contract value, subject to an annual cap per document. On a large supply or construction contract this is a material number.

Withholding on payments abroad. Group service charges, licence fees and management fees paid to a parent generally attract Turkish withholding tax, reducible by treaty but not eliminated by assumption. Budget it before the intercompany agreement is signed.

Translation, notarisation and apostille. Setting up requires a stack of foreign documents legalised and sworn-translated, and the cost and — more importantly — the elapsed time surprise people. It sits on the critical path of every formation project.