Employer of Record in Turkey

Guide to Hiring Employees in Turkey

Your guide to hiring employees in Turkey, covering the employment landscape, employer of record responsibilities, working customs, and local labor laws.

Hiring Employees In Turkey
Employer Of Record In Turkey

Capital City

Ankara

Currency

Turkish Lira

 (

)

Timezone

GMT +3

Payroll Frequency

monthly

Tax Year

1 January- 31 December

Employer Tax

22.50%

Languages

Turkish

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How to Hire Employees In Turkey

Hiring in Turkey for the first time can be overwhelming, especially when navigating unfamiliar employment laws.  Whether you hire independent contractors, set up a legal entity, or use an EOR service, understanding the local employment landscape is crucial for success.  Playroll’s comprehensive guide can help you get started if you're hiring locally or relocating a team member.

Companies can hire employees in Turkey in the following three ways:

  • Setting up a local entity. Entity establishment reduces risk exposure and enables direct hiring, but can be costly and time-consuming – making it less practical for companies seeking quick and flexible solutions for hiring in Turkey.
  • Partnering with an Employer Of Record. An EOR, like Playroll, is a third-party entity that serves as the legal employer of your international workforce which hires, pays, and manages compliance with Turkey’s labor laws and tax regulations.
  • Hiring independent contractors. Hiring contractors gives companies a flexible, affordable alternative to hiring local employees, though it involves unique misclassification risks.

Good To Know

Labor costs in Turkey are considerably lower than in many European countries, attracting businesses looking to manage costs.

Turkey is recognized for having a highly educated and competitive workforce, ranking among the top countries in this regard.

Regulations for remote working exist, and a written agreement is required for remote work arrangements in Turkey.

Employment and Labor Laws in Turkey

Businesses can only operate smoothly in Turkey if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Turkey below, to avoid any compliance issues.

Employment Contract Requirements

The Turkish Constitution and the Labor Act of 2003 define provisions for employee protections and workers' rights. Discrimination based on age, religion, sexual orientation, gender expression, and race is prohibited. Contracts must be drafted in Turkish but have the option to be bilingual. A contract should include the following elements:

  • Commencement date
  • Duration of employment
  • Working hours
  • Compensation and benefits

Onboarding Process

We can help you get a new employee started in Turkey quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Turkey

The standard workweek is 45 hours, with a maximum of 11 hours per day. You can either work 7.5 hours a day for six days or 9 hours a day for five days.

Overtime in Turkey

If you exceed the standard 45-hour workweek, overtime pay is required. The maximum allowed overtime is 48 hours per week. Compensation rates are 150% for weekdays and 200% for weekends. Time off in lieu is also an option. The annual overtime limit is 270 hours, and employee consent is necessary for overtime assignments.

Probation Period in Turkey

Though optional, employment contracts typically include a probationary or trial period, with the standard duration being two months.

Employer of Record in Turkey

An Employer of Record (EOR) acts as the legal employer for workers in Turkey, taking on key responsibilities to ensure compliance with local labor laws and regulations. The EOR facilitates the hiring process for businesses that want to employ workers without establishing a legal entity in the country.

The employer of record in Turkey is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Turkey's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Turkey's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Turkey's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Turkey's labor laws, such as health insurance, pension contributions, and statutory leave.
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Payroll Management in Turkey

Fiscal Year in Turkey

1 January- 31 December is the 12-month accounting period that businesses in Turkey use for financial and tax reporting purposes.

Payroll Cycle in Turkey

The payroll cycle in Turkey is usually monthly, with employees being paid on or before the last day of the month.

Minimum Wage in Turkey

The minimum wage for employees in Turkey is typically 111.12 TRY per hour, amounting to ~20,002.50 TRY per month for a typical 45 hour work week.

Bonus Payments in Turkey

There is no legal requirement for 13th-month payments.

Employment Taxes in Turkey

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 22.5% on top of the employee salary in Turkey.

Tax TypeTax Rate
Pension & Disability11%
General Health Insurance7.5%
Short-Term Insurance Branch Premium2%
Unemployment Insurance2%

Employee Payroll Tax Contributions

In Turkey , the typical estimation for employee payroll contributions cost is around 15%.

Tax TypeTax Rate
Pension & Disability9%
General Health Insurance5%
Unemployment Insurance1%

Individual Income Tax Contributions

In Turkey, individuals are subject to progressive tax rates ranging from 15% to 40%, determined by their respective income levels as follows:

Income BracketTax Rate
0 - 110,000 TRY15%
110,001 TRY - 230,000 TRY20%
230,001 TRY - 870,000 TRY27%
870,001 TRY - 3,000,000 TRY35%
3,000,001 TRY And above40%

Pension in Turkey

The normal retirement age is 60 years for men and 58 years for women with been insured for 20 years (for women) or 25 years (for men), and paid the required days of social security premium (ranging from 5000 to 5975 days depending on insurance start date). Mothers of children with disabilities who require constant attendance may receive credit to retire before the normal retirement age.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Turkey tailored to your needs.

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Work Permits & Visas in Turkey

Annual Leave & Company Policies In Turkey

Mandatory Leave Entitlement in Turkey

The annual leave entitlement in Turkey is from 0 to 20 days, depending on the length of service. for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Turkey

There are several public holidays throughout the calendar year. These holidays are distinct from the minimum paid leave entitlement and are granted in addition to annual leave. The following list comprises the national holidays in Turkey:

HolidayDate
New Years Day1 January
Ramazan Bayramı Holiday [Eid al-Fitr]April, day changes yearly
Childrens Day23 April
Labor Day1 May
Youth and Sports Day19 May
Kurban Bayramı Holiday [Eid al-Adha]June, Day changes yearly
Democracy and National Solidarity Day15 July
Victory Day30 August
Republic Day29 October

Paid Time Off in Turkey

In Turkey, the labor law ensures that employees are entitled to annual paid leave based on their length of service, provided they have completed at least one year of employment. The accrual periods and corresponding leave durations are as follows:

  • One to five years of employment, including the fifth year: 14 days
  • Five to 15 years of employment, including the fifteenth year: 20 days
  • 15 years of employment or more: 26 days
  • Individuals under 18 or over 50 years of age are automatically granted 20 days of paid annual leave in Turkey.

Maternity Leave In Turkey

Female employees get 16 weeks of paid maternity leave. They need to take eight weeks before giving birth and the other eight weeks after. If it's a multiple pregnancy, they get an extra two weeks before childbirth. If a doctor confirms the woman's good health, she can work until three weeks before delivery and then take a 13-week leave after giving birth.

Paternity Leave In Turkey

Employees in Turkey are granted five days of paid leave when their spouse gives birth, and three days of paid leave in the case of adoption. The employer covers the costs of this leave.

Sick Leave In Turkey

Employees become eligible for sickness benefits from the social security office after the third consecutive day of illness. Employers are not required to provide sick pay during the initial two days of an employee's sickness (although often paid in practice), and they have the option to terminate workers after a six-week period of sick leave.

Parental Leave In Turkey

Parental leave in Turkey is not specifically regulated by any law. Nonetheless, employees may be eligible for maternity leave and paternity leave benefits.

Marriage Leave

Employees are permitted a maximum of three days of paid leave to fulfill their matrimonial ceremonies.

Adoption Leave

Adoptive parents of children below the age of three are eligible for eight weeks of compensated leave, starting from the date their legal custody is officially recognized. Furthermore, these parents have the option to apply for up to six months of unpaid leave following the completion of the adoption process.

Employment Termination and Severance Policies in Turkey

Termination Process in Turkey

The procedures for termination in Turkey depend on the specific terms outlined in the employment agreement and collective agreement. Termination can occur under the following circumstances:

  • Due to immoral, dishonorable, malicious conduct, or similar behavior
  • Because of medical reasons causing incapacity for the job
  • As a result of misconduct
  • Through disciplinary dismissal

Notice Period in Turkey

For those employed under an open-ended contract in Turkey. Fixed-term contracts in Turkey do not entail any specific notice period. The duration of notice periods is by the length of the employee's tenure, outlined as follows:

  • Less than six months: A notice period of two weeks.
  • Six to 18 months: A notice period of four weeks.
  • 18 to 36 months: A notice period of six weeks.
  • Over 36 months: A notice period of eight weeks.

Severance in Turkey

In Turkey, employees who have worked for more than a year and are unfairly dismissed or resign for a valid reason, get severance pay. The amount is calculated by multiplying their monthly salary by the number of years they worked, including any extra months and days. The calculation uses the gross wage, with a set limit.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQS

FAQs About Hiring In Turkey

Questions and Answers

What Is an EOR in Turkey?

An Employer of Record (EOR) in Turkey is a third-party organization that legally employs workers on behalf of your company. The EOR handles all local employment tasks, including compliance with labor laws, payroll, taxes, benefits, and employment contracts. This allows businesses to easily hire talent in Turkey without the need to set up a legal entity there, saving time and ensuring compliance with local regulations.

Can I Hire in Turkey Without an Employer of Record?

Yes, you can hire in Turkey without an Employer of Record, but this typically requires setting up a legal entity in the country. Establishing a local entity involves navigating registration processes, tax systems, and employment regulations. This can be costly and time-consuming, often taking between 4-6 months to enter a new market. An EOR provides an alternative by allowing you to hire talent quickly and compliantly without the need to establish a legal presence in Turkey.

How Much Does It Cost To Employ Someone In Turkey?

The cost of employing someone in Turkey includes more than just their salary. You also need to consider mandatory contributions such as taxes, social security, insurance, and benefits. These additional costs can vary based on the role, location, and specific employment laws in Turkey. When using an Employer of Record, there are additional service fees, usually charged as a percentage of the employee's salary or as a monthly or annual fee. This ensures compliance and covers administrative tasks.

What Is the Minimum Wage In Turkey?

As of January 1, 2024, Turkey's minimum wage rates are:

  • 111.12 TRY p/h TRY per month.
  • Applies nationwide across all sectors.
  • Adjustments typically occur annually.

How Does an EOR Help You Run Payroll In Turkey?

An EOR simplifies payroll management in Turkey by handling all aspects of salary payments, tax deductions, and compliance with local labor laws for your international employees. The EOR calculates gross pay, deducts necessary taxes and contributions, and ensures employees are paid accurately and on time. They also manage year-end tax reporting and compliance filings, reducing the administrative burden on your team and minimizing the risk of errors or penalties.

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