# Personnel & Payroll

> From your employees' monthly payslip calculations to severance and notice pay calculations, we manage your payroll processes.

Source: https://sinemyavuz.com.tr/en/services/payroll
Author: Sinem Yavuz, Certified Public Accountant (SMMM) — SMMM Sinem Yavuz: Finance, Accounting & Advisory Office

Payroll is a process that repeats every month but has to be done without error. Getting the social security premium, income tax withholding, stamp tax, and any garnishment/alimony deductions right takes correctly calculating a lot of variables — a single small error can lead to employee dissatisfaction or an administrative penalty.

## What's Included

**Monthly payroll calculation:** For every employee, we calculate gross-to-net pay, correctly apply social security premium, income tax and stamp tax deductions, and prepare the payslip.

**Overtime and bonus calculations:** We calculate overtime, weekend, and public holiday pay at the rates set by the Labor Law.

**Severance and notice pay:** When an employee leaves, we correctly calculate their entitled severance and notice pay with the required documentation.

**Payroll reporting:** We share a monthly payroll summary with you, along with employer cost and SGK/tax deduction reports.

## Why It Matters

An incorrect payroll calculation creates problems for both employee and employer: underpayment leads to employee complaints, overpayment leads to unnecessary cost for the business. Consistent, accurate payroll processing eliminates this risk.

## How We Support This

Whatever your headcount or payroll structure, we run the same disciplined payroll process every month, fully synchronized with SGK and tax office filings.

## Who Is It For?

- Every business employing one or more staff
- Companies paying overtime, bonuses or variable pay
- Employers who need to calculate severance and notice pay correctly for a leaving employee
- Businesses that want payroll run externally and coordinated with SGK notifications

## When a Different Route Is Needed

- Mandatory mediation and court proceedings in reinstatement and employee claim disputes fall within legal services; we prepare the calculations and documents.
- Collective agreement negotiations are handled with the employers' union and legal advisors; we apply the signed agreement to payroll.

## Frequently Asked Questions

### Which deductions are made from gross to net pay?

The employee's SGK contribution and unemployment insurance contribution are deducted from gross pay; income tax is calculated on the remainder, and stamp duty is calculated separately. Since 1 January 2022, the portion corresponding to the minimum wage has been exempt from income tax and stamp duty; for wages above the minimum wage, the exemption applies up to the minimum wage amount. Any enforcement or alimony deductions are made from net pay.

### Is the minimum living allowance (AGİ) still applied?

No. The minimum living allowance was abolished by Law No. 7338 from 1 January 2022 and replaced by the minimum wage income tax and stamp duty exemption. For this reason, payslips after 2022 do not include an AGİ line.

### Who is entitled to severance pay, and how is it calculated?

An employee who has worked at least 1 year for the same employer is entitled to severance pay if dismissed by the employer without just cause, if they terminate for just cause, or in cases of military service, retirement, a female employee leaving within 1 year of marriage, or death (Law No. 1475, Art. 14). For each full year, 30 days of gross pay including regular benefits is paid, capped at the severance ceiling updated every 6 months. Only stamp duty is deducted from severance pay.

### What are the notice periods?

For terminating an indefinite-term employment contract, Article 17 of the Labour Law sets the notice periods as follows: 2 weeks for service under 6 months, 4 weeks for 6 months to 1.5 years, 6 weeks for 1.5 to 3 years, and 8 weeks for over 3 years. The party that does not observe the period pays notice compensation equal to the wages for that period.

### How is overtime calculated?

Work exceeding 45 hours a week is overtime, and each hour is paid at 50% above the normal hourly rate (Labour Law, Art. 41). Overtime cannot exceed 270 hours a year, and the employee's written consent is required. If work is done on national or public holidays, an additional day's wage is paid for each day worked (Art. 47).

### Do I have to give employees a payslip?

Yes. Under Article 37 of the Labour Law, the employer must give the employee a signed or stamped statement showing how the wage was calculated when paying wages. Payslips are also the employer's main evidence in disputes over employee claims.