The payroll tax in Turkey is paid by employer and the employee in the form of various contributions and social security contributions, deducted from the gross salary. It is the employer who is responsible for declaring the social security contributions and deducting them for both the employee and the employer’s share, then paying them to the organizations concerned.
The declaration and payment of payroll tax in Turkey is monthly or quarterly, depending on the company’s workforce and the date of salary payments.
The amount of social contributions corresponds to a percentage of the gross salary defined on the basis of a remuneration base called the contribution base.
How much are social security contributions in Turkey (included in payroll tax) ?
The amount of social contributions, employee and employer shares, varies according to the branch to which the contribution will be paid:
Illness and pension
Contributions, learning and training
General equilibrium contribution
It should be noted that only the basic and supplementary pension contributions are borne by the employee and the employer. As for the following social contributions, they are solely the responsibility of the employer:
the health contribution;
the unemployment insurance contribution;
family allowance contributions;
the autonomy solidarity contribution;
work accident contributions;
vocational training contributions and apprenticeship tax;
Who pays payroll tax in Turkey?
It is the employer who pays the social security contributions. Concretely, in addition to its share of contributions, it retains those due by the employee on his gross salary at each pay, then declares and pays all employer and employee contributions and contributions to the collection bodies.
The salary paid to the employee is a net salary. This is his gross remuneration less the salary share of the contributions.
The employer in Turkey must declare the total amount of the gross wages he has paid, the base and the amount of the associated social security contributions and this, monthly or quarterly (in the latter case on option).
When to pay payroll tax in Turkey?
The deadlines for paying social contributions are established according to a schedule that differs according to the company’s workforce and the dates of salary payments.
For more information on payroll in Turkey please read our article: Payroll Turkey and Auto Enrollment Private Pension