Turkey Among Europe’s Cheapest for Employers, Toughest for Workers

Summary:

A new report on European labor costs places Turkey among the most affordable countries for employers — but one of the hardest for workers, whose take-home pay is heavily eroded by high deductions. The study also reveals that as salaries rise, employer costs in Turkey actually decline, making high-income earners cheaper to employ relative to mid-level staff.

Turkey Ranks Eighth Cheapest for Employers

According to the global employment platform Boundless, which compared labor expenses across 36 European countries in its report “Understanding Employment Costs in Europe 2025,” Turkey is the eighth most cost-effective country for employers.

For a gross annual salary of €60,000, the total cost to an employer in Turkey amounts to €64,853. In comparison, France tops the list, where the same salary costs a company €95,303, while Romania offers the lowest employer burden on the continent.

Workers’ Net Income Among Europe’s Lowest

The situation looks starkly different for employees. After taxes and deductions, a Turkish worker earning €60,000 gross takes home just €36,063 net — ranking Turkey seventh from the bottom among European countries in net income terms.

By contrast, Bulgaria offers the highest net pay relative to gross income, while in Slovenia, workers lose more than half of their gross salary, taking home only €28,948 per year.

For a mid-level software developer, the report estimates an average gross annual salary of €26,800, with a net income of just €16,146.

The Paradox: Higher Salary, Lower Employer Cost

Turkey’s employer contribution system creates a unique dynamic — as salaries rise, the percentage of employer contributions falls. Contribution rates decline from 7.5% for low-income earners to just 3.1% at upper income levels.

This means that senior executives and highly skilled professionals are relatively cheaper for Turkish employers than lower- or mid-tier workers, creating a paradox in labor cost distribution.

Low Cost of Living, But Workers Still Struggle

While Turkey’s overall cost of living remains lower than most European peers, this advantage doesn’t necessarily translate into financial comfort for workers.

Boundless estimates Turkey’s average annual living expenses at €12,302, which is modest by European standards. Yet high payroll taxes and limited wage growth continue to weigh on disposable income.

“Low Employer Burden, High Worker Deductions” Pattern

The report highlights a recurring pattern in several low-cost labor markets: countries with the lowest employer burdens often impose the highest deductions on employees. Turkey, the study concludes, exemplifies this trend.

As European businesses seek cost advantages, Turkey remains a magnet for employers — but for its workers, the financial picture is far less optimistic.

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