Effortless Hiring in Turkey

Employment Contracts

• Employment relationships in Turkey are primarily governed by the Labor Act No. 4857. Key points include:
• Indefinite-Term Contracts: Standard contracts without a predetermined end date.
• Fixed-Term Contracts: Permissible only under certain conditions and must be in writing. These contracts cannot exceed five years in duration.
• Seasonal Contracts: Applicable for work tied to specific seasons or periods.

Probationary Period

• A standard probationary period can last up to 30 days for most positions. This period can be extended to 180 days for managerial roles through collective labor agreements. During this time, either party can terminate the contract without cause.

Payroll Frequency

• Employees are typically paid on a monthly basis, with payments due by the end of each month.

Minimum Wage

• As of 2023, the gross minimum wage is set at TRY 13,414.50 per month.

Overtime

• The standard workweek is 45 hours. Overtime is compensated at:
• 150% of the regular hourly rate for the first nine hours.
• 200% for any hours worked beyond this or on public holidays.
• Overtime work is limited to a maximum of 270 hours per year.

Bonuses

• While not mandated by law, bonuses are common in Turkey and are typically outlined in employment contracts or collective bargaining agreements.

Employee Contributions

1. Social Security: Employees contribute approximately 14% of their gross salary.
2. Unemployment Insurance: Employees contribute about 1% of their gross salary.

Employer Contributions

1. Social Security: Employers contribute approximately 20.5% of the employee's gross salary.
2. Unemployment Insurance: Employers contribute about 2% of the employee's gross salary.

Income Tax

• Turkey employs a progressive income tax system with rates ranging from 15% to 40%, depending on income levels.

Type of Leave in Turkey

1. Annual Leave

• Employees are entitled to:
• 14 days for employees with 1 to 5 years of service.
• 20 days for employees with 5 to 15 years of service.
• 26 days for employees with more than 15 years of service.
• Employees under 18 and over 50 are entitled to a minimum of 20 days of annual leave.

2. Sick Leave

• Employees are entitled to sick leave with a medical report. The Social Security Institution (SGK) provides sick pay starting from the third day of illness.

3. Maternity Leave

• Female employees are entitled to 16 weeks of paid maternity leave—8 weeks before and 8 weeks after childbirth, paid at 100% by SGK. Additional unpaid leave of up to 6 months can be requested.

4. Paternity Leave

• Male employees are entitled to 5 working days of paid paternity leave following the birth of a child.

5. Public Holidays

• Turkey observes several public holidays, including:
• New Year's Day
• National Sovereignty and Children's Day
• Labor and Solidarity Day
• Commemoration of Atatürk
• Youth and Sports Day
• Victory Day
• Republic Day
• Religious holidays such as Ramadan and Sacrifice Festivals.

Mandatory Benefits

1. Social Security: Covers health insurance, retirement pensions, disability benefits, and unemployment insurance.
2. Health Insurance: Provided through the Social Security Institution, offering comprehensive medical coverage.
3. Retirement Benefits: Employees become eligible for retirement benefits after meeting specific age and contribution requirements.

Optional Benefits

Employers may offer additional benefits such as meal vouchers, transportation allowances, and professional development opportunities to attract and retain talent.

Notice Periods

For termination:

• 2 weeks for employment up to six months.
• 4 weeks for employment between six months and one-and-a-half years.
• 6 weeks for employment between one-and-a-half years and three years.
• 8 weeks for employment over three years.

Severance Pay

Employees with at least one year of service are entitled to severance pay equivalent to 30 days' gross salary for each year of employment.

Just Cause Termination

Immediate termination without notice is permissible for reasons such as health issues, immoral behavior, or force majeure events. In such cases, employers must provide a written explanation detailing the cause.