Employer of Record in Turkey

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Turkey

Turkey is a country that bridges Europe and Asia, rich in history and cultural diversity. Istanbul, once known as Constantinople, is a city where East meets West, with landmarks like Hagia Sophia and the Blue Mosque. Turkey’s cuisine, featuring kebabs, baklava, and Turkish tea, is a highlight of its culture. The country’s natural beauty includes Cappadocia’s unique rock formations and Pamukkale’s thermal pools. Turkey has a rich archaeological heritage, with ancient sites like Troy and Ephesus.

Languages

Turkish

Population

85.3 Million

Capital City

Ankara

Currency

Turkish Lira (TRY)

Cost of living ranking

70th

VAT (Value Added Tax)

20%

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 Management in

Turkey

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.

Taxation in

Turkey

Employee Contributions

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

Employer Contributions

Social Security: Employers contribute approximately 20.5% of the employee's gross salary.
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.

Leave in

Turkey

Type of Leave in Turkey

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.

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.

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.

Paternity Leave

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

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.

Benefits in

Turkey

Mandatory Benefits

Social Security: Covers health insurance, retirement pensions, disability benefits, and unemployment insurance.
Health Insurance: Provided through the Social Security Institution, offering comprehensive medical coverage.
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.

Termination in

Turkey

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.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

Employment Contracts

Probationary Period

Payroll Frequency

Minimum Wage

Overtime

Bonuses

Employee Contributions

Employer Contributions

Income Tax

Type of Leave in Turkey

Mandatory Benefits

Optional Benefits

Notice Periods

Severance Pay

Just Cause Termination

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