Turkey Employer Social Security Contributions 2026: What Changed Under Law No. 7566

Effective January 1, 2026, Law No. 7566 raises Turkey’s employer social security contributions to 12% of insured monthly earnings, reduces the non-manufacturing premium discount from 4 percentage points to 2, and lifts the contribution ceiling from 7.5 to 9 times the minimum wage. The law introduces three interconnected changes that together increase payroll costs for most employers operating in Turkey.

What changed: Three employer cost increases at a glance

The table below summarizes three key changes introduced by Law No. 7566, effective January 1, 2026.

Social security contribution rate increase

The baseline employer social security contribution rate has increased from 11% to 12% of monthly earnings. This change takes effect January 1, 2026, and applies broadly across employers in Turkey. For companies with large headcounts or higher average salaries, the cumulative payroll cost impact is material.

The rate change is not sector-specific — it applies to all employers contributing to Turkey's social security system regardless of industry or workforce size.

Non-manufacturing premium discount reduced

Turkish employers in non-manufacturing sectors previously benefited from a 4-percentage-point reduction in their employer contribution rate through a premium discount program. Law No. 7566 reduces that discount to 2 percentage points — a 50% reduction in the relief available to eligible employers.

This change effectively combines with the rate increase to create a double impact on non-manufacturing employers: The floor rate rises and the discount available to offset it shrinks. Payroll teams in affected sectors should model both changes together when projecting 2026 employment costs.

Contribution ceiling raised to 9× minimum wage

The monthly earnings ceiling subject to social security contributions has been raised from 7.5 times to 9 times the minimum wage. In practical terms, this means employers now contribute on a higher share of earnings for higher-paid employees who previously exceeded the old ceiling.

Companies with a concentration of managerial, specialist, or expatriate workers in Turkey are most exposed to this change. Payroll calculations for employees earning above the old ceiling should be updated immediately to reflect the new threshold.

Three steps to take before your next payroll cycle in Turkey

To ensure compliance with the January 2026 changes under Law No. 7566:

1. Update your payroll system with the new 12% employer contribution rate and the revised 2-percentage-point non-manufacturing discount where applicable.
2. Recalculate contribution ceilings for all employees earning above the previous threshold of 7.5× minimum wage to ensure the new 9× ceiling is applied correctly.
3. Audit sector classification for all Turkish entities to confirm eligibility for the remaining non-manufacturing discount under the revised rules.

Sources: SRP Legal, CottGroup

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