How much do social security contributions add to Tunisia's employment costs?

In Tunisia, social security contributions significantly add to the total employment cost. The combined social security contribution rate for both employer and employee is approximately 26.75% of the gross salary. Additionally, employers may pay extra contributions for occupational accident insurance, typically around 0.5% but varying by sector and risk level, which further increases the employer’s cost.

How does the 17.07% employer social security rate affect hiring costs in Tunisia?

The 17.07% employer social security contribution rate in Tunisia significantly impacts hiring costs by increasing the employer’s total payroll expenses beyond the gross salary paid to the employee. This contribution is mandatory and calculated on the employee’s gross salary, including allowances and bonuses.

How does the increase to 17.07% in 2025 impact companies' payroll budgeting in Tunisia?

The increase of the employer social security contribution rate from 16.57% to 17.07% in 2025 raises the direct labor cost for companies in Tunisia by an additional 0.5% of the employee’s gross salary. This seemingly small percentage increase has several implications for payroll budgeting.

Understanding the Total Cost of Employment in Türkiye

If you are planning to expand your workforce in Türkiye or considering an Employer of Record (EOR) service, it is essential to understand how the total cost of employment is calculated. This knowledge enables you to make informed decisions when budgeting and managing employment in Türkiye.

When calculating the total employment cost in Türkiye, employers must consider more than the gross salary. Key factors include social security and unemployment insurance premiums (SGK), income tax withholdings and mandatory benefits like paid leave and allowances. This article breaks down these elements to help you manage employment costs effectively in Türkiye

Get in Touch with Us

Alp Atasoy

Sales and Business Development Consultant

Base salary

Gross Salary: The starting point for employment cost calculations is the gross salary agreed upon between employer and employee.

Gross Minimum Wage (2025): 26,005.50 TRY per month

Net Minimum Wage (2025): 22,104.67 TRY per month

Daily Gross Wage (2025): 866.85 TRY

Mandatory Employer Contributions

Turkey requires several statutory employer contributions, calculated as a percentage of the gross salary and subject to minimum and maximum bases.

Contribution Type	Employer Rate (2025)	Employee Rate (2025)	Basis (2025)
Social Security (SGK)	15.75%*	14%	26,005.50 – 195,041.40 TRY/month
Unemployment Insurance	2%	1%	Same as above

* Note: The 15.75% rate assumes a 5-point legal discount; standard rate is higher if the discount does not apply

The 5% SGK discount applies only to manufacturing companies. For service and trade companies, the applicable discount is 4%.

There is no discount for pensioners. SGK employer contribution rates for pensioners are different

Social Security (SGK) Premiums

Covers pension, health, disability, maternity, and work accident insurance

Employer: 15.75% (with discount)

Employee: 14%

Both contributions are subject to the official minimum and maximum bases (26,005.50 TRY – 195,041.40 TRY/month for 2025

Unemployment Insurance

Employer: 2%

Employee: 1%

Calculated on the same base as SGK

Additional Allowances and Benefits

Meal Allowance

Daily Limit: 240 TRY + VAT

Monthly Estimate: ~5,280 TRY + VAT

Note: Cash payments are included in the SGK premium base; meal cards or on-site meals may offer tax advantages

Transportation Allowance

Daily Limit: 126 TRY

Monthly Estimate: ~2,772 TRY

Note: Cash payments are included in the SGK base; direct provision of transport may be exempt

Severance and Notice Indemnities

Severance Pay

One month’s gross salary per year of service, applicable after at least one year of employment.

Severance pay ceiling (2025) is TRY 46,655.43 per year of service since January 2025

If the employee’s monthly gross wage exceeds this amount, the severance pay is capped at the ceiling.

Notice Periods

Less than 6 months: 2 weeks

6 months to 1.5 years: 4 weeks

1.5 to 3 years: 6 weeks

Over 3 years: 8 weeks

Example calculation (Minimum Wage Employee)

Years of Service	Gross Salary (TRY)	Severance Indemnity (TRY)	Notice Indemnity (TRY)	Total Indemnity (TRY)
2	26,005.50	52,011.00	39,008.25	91,019.25
5	26,005.50	130,027.50	52,011.00	182,038.50
10	26,005.50	260,055.00	52,011.00	312,066.00
15	26,005.50	390,082.50	52,011.00	442,093.50

Income tax and stamp duty may apply to certain indemnities

Notes:

Severance Indemnity: Calculated as one month’s gross wage per year of service, up to the legal ceiling (TRY 46,655.43 for Jan–June 2025)

Notice Indemnity: Calculated based on the required notice period for the employee’s length of service

Income tax: Income tax is not applied to severance pay up to the ceiling, but stamp tax (0.759%) is deducted. Notice pay is subject to income tax and stamp tax, but not to social security premiums

Gross Salary: For minimum wage, the 2025 monthly gross is TRY 26,005.50

Government Incentives and Support Measures

Minimum Wage Support (2025)

Amount: 1,000 TRY per employee per month (33.33 TRY per day)*

Eligibility: Private sector employers with no outstanding SGK debts, proper employee registration, and maintenance of workforce levels compared to the previous year.

Benefit: Deducted directly from SGK premiums owed.

*The minimum wage support for employers in Turkey has been set at 1,000 TRY per month for the period from January 1, 2025, to December 31, 2025. This support, regulated by the Official Gazette, is valid for the entire 2025 calendar year

Income Tax Withholding and Stamp Duty

Income Tax: Employers are responsible for withholding and remitting income tax on behalf of employees, based on progressive rates.

Stamp Duty: Applied to salary payments at a rate of 0.759% (2025).

Example: Total Monthly Employer Cost for Minimum Wage (2025)

Component	Amount (TRY)
Gross Salary	26,005.50
SGK Employer Share	4,095.87
Unemployment Insurance	520.11
Total Monthly Cost	30,621.48
Less: Minimum Wage Support	-1,000.00
Net Employer Cost	29,621.48

Figures assume all discounts and support applied, and do not include optional benefits or additional allowances

Other Considerations

Annual Leave: Annual leave is at least 14 days after 1 year of service, and at least 20 days for employees over 50, regardless of service length

Public Holidays: Paid public holidays are mandated by law.

Overtime: Overtime is paid at premium rates as per the Turkish Labor Law.

Collective Agreements: May impose additional costs or benefits.

Summary Table: Key Employment Cost Elements in Türkiye(2025)

Cost Element	Employer Obligation (2025)
Gross Salary	≥ 26,005.50 TRY/month (minimum)
SGK Premium (Employer)	15.75% (with discount)
Unemployment Insurance	2%
Income Tax Withholding	Progressive, employer remits*
Stamp Duty	0.759%
Meal Allowance	Up to 5,280 TRY/month (optional)
Transportation Allowance	Up to 2,772 TRY/month (optional)
Severance/Notice Pay	Statutory, varies by tenure
Minimum Wage Support	-1,000 TRY/month (if eligible)

*2025 Income Tax Rates for Employment Income:

Up to 158,000 TRY: 15%

158,001 – 330,000 TRY: 20%

330,001 – 1,200,000 TRY: 27%

1,200,001 – 4,300,000 TRY: 35%

Over 4,300,000 TRY: 40%

Conclusion

Employers in Türkiye must budget for gross salary, mandatory social security and unemployment insurance contributions, income tax and stamp duty withholdings, and potential severance/notice payments. Additional allowances such as meal and transportation, as well as government incentives, can significantly affect the total cost. Staying updated on legal changes and leveraging available support measures is essential for cost-effective workforce management in Türkiye.