Employer of Record in Turkey

Your human resource (HR) responsibilities, payroll, local tax and compliance, administration, visa, and mobility requirements are all managed by the Turkey EOR solution. We are the market leaders in EOR services because of our tech-enhanced, integrated HR platform and network of specialists in more than 150 countries. For businesses wishing to develop in Turkey, the competent help of our worldwide EOR services may streamline and simplify the challenging, time-consuming process of staff hiring and onboarding. Get in contact with our professionals immediately to utilise our services.

Overview of Turkey

• Area: 785,350 square kilometres
• Population: 84,339,067 people (2020)
• Currency: Turkish lira (TRY)
• Capital City: Ankara
• Official language: Turkish
• Literacy rate: 96.2 %
• Gross Domestic Product (GDP): USD 7.99 billion (2020)

Employment Landscape in Turkey

The government of Turkey has created its business regulations to entice both seasoned and inexperienced international businesses since the country places a high priority on foreign investments in its economy. Due to the advantageous business climate this has produced, investors now have the chance to launch new ventures or grow their current ones.

Tourism, hotel and restaurant operations, building, agriculture, and investments in the gold and oil refining sectors are some of the most lucrative commercial ventures in Turkey. These sectors have a history of producing consistent profitability.

It’s critical to have a solid grasp of Turkish labour rules if you intend to work there. These regulations control the working conditions and responsibilities of those who are contract employees. It is possible to operate within a stable and predictable legal framework and guarantee that both employers and employees are treated fairly by being aware of these rules.

Entitlements	Explanations
The minimum wage in Turkey	The monthly minimum wage is TRY 2,850.50.
Working hours	45 hours maximum per week 11 hours maximum per day Nighttime hours: 8 p.m. to 6 a.m. It is prohibited to work longer than 7.5 hours during the night shift.
The minimum age to work	The legal age of the majority is sixteen.
Overtime compensation	The legislation stipulates that an additional payment of 1.5 times the employee’s regular pay rate must be made for overtime labour. Overtime hours cannot total more than 270 per year.
Annual leave	According to Turkey’s Labor Law (No. 4857), workers who have worked a full year are entitled to yearly leave from their employers. An employee’s yearly leave entitlement is determined by taking into account their age and service history.  Employees are entitled to two weeks of vacation after working for the same employer for between one and five years. 20 days of paid vacation are due to people who have worked five to fifteen years. Those with more than 15 years of employment are also entitled to 26 days of paid vacation.  It’s important to note that these benefits are the very minimum required by law; businesses are free to provide more generous vacation programs if they so want. The minimal requirements set by the law must be followed by all employers in Turkey.
Paid public holidays	January 1: New Year April 23: National Sovereignty and Children’s Day May 1: Labor and Solidarity Day May 19: Commemoration of Atatürk, Youth and Sports Day July 15: Democracy and National Unity Day August 30: Victory Day October 28 to 29: Republic Day
Medical/sick leave	Employees are entitled to a maximum of one week of paid sick leave under Article 46(c) of the Turkish Labor Law upon presentation of a legal medical report. If required, the employer has the option to extend this time frame. However, if the sick leave lasts longer than the original week, it could not be paid.  It’s vital to remember that the employer may have the ability to terminate the employment contract without prior notice if the sick absence lasts longer than the required six weeks under the terms of the labour legislation. The employee would be eligible for severance compensation in such circumstances.  If a worker takes more than six weeks of sick time beyond the maximum amount of notice allowed by labour law, an employer may choose to terminate the employee’s employment without giving any prior notice. This clause aims to manage extended absences brought on by sickness while still preserving the workforce’s continuity and productivity.
Maternity leave	The Turkish labour law provides provisions for maternity leave, allowing pregnant women to take a total of 16 weeks of leave. This period includes eight weeks before giving birth and eight weeks after delivery. It’s important to note that not all of the leave can be taken after the birth; a portion of it must be taken before.  In the case of complicated pregnancies, such as carrying twins or more, the maternity leave is extended to 18 weeks to accommodate the additional challenges and needs.  A pregnant woman is permitted to continue working up to three weeks before her expected delivery date. The remaining portion of the leave can be taken after the birth, depending on the health of both the mother and the baby.  Once the paid leave period ends after childbirth, a working mother has the option to request an additional six months of unpaid leave without affecting her entitlement to vacation pay.  During the pregnancy, a working woman may be granted time off for regular medical examinations to ensure her health and the well-being of the baby.  After giving birth, an employee is entitled to request breaks in the workday for breastfeeding purposes. These breaks can amount to one hour and 30 minutes per day, allowing the mother to attend to her nursing needs.  To be eligible for maternity leave, an employee must provide an official medical report indicating the expected date of birth, confirming her pregnancy status. This report serves as proof of eligibility for maternity leave entitlements.
Special Leaves	Parents have the right to take up to three days of parental leave, as stated in Article 46 of the Labor Code. Alternative rules, nevertheless, are also in existence and offer employees particularly paid breaks under certain conditions. For instance, employees are entitled to three days of paid leave under Turkish Labor Law’s Article 46(b) in the terrible circumstance of a family member’s demise. This includes members of the employee’s immediate family, such as their mother, father, spouse, brother, sister, or kid.
Employee health benefits in Turkey	Employees must have both public and private health insurance in Turkey. The Turkish Ministry of Health oversees all aspects of social protection and health care. Everyone has a constitutional right to social security, according to the Turkish constitution. The employee’s income is automatically withheld to cover public health insurance.
Employees’ data protection rights	The labour code’s Data Protection Law forbids unauthorised access to and use of employee personal data.
Employees’ anti-discrimination rights	The following grounds are prohibited by Turkey’s anti-discrimination laws from leading to discriminatory treatment or discrimination.  Language, ethnicity, race, and gender Political perspectives Religion

Contractors vs. Full-time Employees

The second part explains many features of employment contracts, including their kinds, meanings, and requirements, in accordance with the rules of the 4857 Labor Law. It’s crucial to understand that there are no set formal specifications for an employment contract. The ability to engage in a contract that meets their requirements belongs to both the employer and the employee, so long as they adhere to the law.

According to Turkish Employment Law, employers and employees may create one of four main forms of employment agreements:

• Employment agreements that are temporary and permanent can be made for a set period of time or without a set expiration date, respectively.
• Contracts can be either definitive or indefinite. Definitive contracts have a set end date, whereas indefinite contracts don’t.
• Part-time employment agreements: These agreements are used when an employee works fewer hours than what is required to be deemed full-time under the applicable labour laws.
• On-call labour contracts: These arrangements are made when workers are required to work as needed or on a flexible schedule, usually due to the demand of the employer or unique circumstances.

Employers must take these possibilities into account and choose the correct kind of contract that fits the demands of the business, the rights and duties of the employee, and the nature of the job, all while adhering to the applicable legal requirements.

Temporary Work Contract

A temporary contract can be renewed twice by the employer for a maximum employment tenure of 18 months, with a minimum work duration of up to six months.

Full-time Employment Contract/Indefinite Contract

A full-time employee is typically recruited for a workweek of 45 hours. Although the workweek’s hours might be irregularly divided, no more than 11 hours can be worked on a single day.

Part-time Employment Contract

A contract for a part-time employee indicates that the typical weekly work schedule is much less than that of a full-time employee.

On-call Job and Project-based Employment

Work schedules are typically established in advance. The weekly working time is restricted to 20 hours when a project schedule has not been established. When a position becomes available, the employer is required to notify the employee.

For overseas businesses without local liaison offices, creating comprehensive employment contracts that satisfy Turkish employment contract legislation can be a time-consuming undertaking. In order to hire and onboard personnel in a compliant manner, our entire EOR solution for Turkey also contains templates of employment contracts. Learn more from our professionals regarding contract and full-time employment of the top Turkish talent.

Recruitment in Turkey

An employment contract is a formally enforceable agreement between an employer and employee under which the employee commits to doing the work and the employer commits to paying the employee a salary in exchange for their services. These agreements can be made for a certain period of time or for an indefinite amount of time, and they can support many kinds of employment arrangements including full-time, part-time, probationary, or other working arrangements. It is significant to highlight that contracts lasting more than a year must be in writing.

The Labor Law’s provisions provide detailed guidelines about the maximum number of hours that may be worked. A typical working day should not last longer than 11 hours, and a week’s worth of labour should not total more than 45 hours, evenly spread out among the working days.

The total amount of overtime hours performed in a calendar year should not go beyond 270 hours. Any time spent working more than the allotted 45 hours per week qualifies as overtime, and employees are entitled to pay for these extra hours at a rate equal to 1.5 times their usual hourly rate.

The Ministry of Social Security and Labor sets the minimum wage. The current minimum wage in Turkey is TRY 2850.50. This sum acts as the starting salary that companies are required to use as the minimum pay for their staff.

To maintain compliance with labour laws and protect the rights and duties of all parties engaged in the employment relationship, it is crucial that employers and employees are both aware of these requirements.

Job Portals

Employers in Turkey are increasingly using employment websites to promote their open positions. A variety of websites and online platforms offer a practical and effective way for businesses to connect with prospective employees and for job searchers to look into new openings.

One of the most well-liked employment portals in Turkey is linkedin , a professional networking site that gives companies a free platform to advertise their business and post job opportunities. Another well-known employment site,turkeytalent, offers a user-friendly platform for job searches and posts and is targeted exclusively at Turkish job seekers and businesses. A wide variety of job openings and career possibilities in Turkey are also accessible through turkeytalent, a worldwide employment portal.

Probation & Termination

Probation Period

Probationary periods for new hires can last up to two months. However, with the agreement of the employee and the employer, the probationary period may be extended for a maximum of four months. Either party may terminate the agreement at any time during the trial period and without cause.

Termination of Service 

Both the employer and the employee are required to give advance notice to the other party if they plan to terminate the employment contract under the terms of Labor Law No. 4857. Following are some examples of how the length of employment affects the notice period’s length:

• A minimum notice period of two weeks must be given for contracts lasting one to six months.
• A minimum notice period of four weeks is required if the length of the job is between six and 18 months.
• A minimum notice period of six weeks is necessary for employment contracts lasting between eighteen and thirty-six months.
• A minimum notice period of eight weeks must be given if the work term exceeds 36 months.

It is important to speak with our specialists to make sure that your probation and termination are in line with Turkish legislation. They can offer advice and support catered to your unique needs. To find out more about how we can assist your growth efforts while guaranteeing compliance with regulatory standards, schedule a demo now.

EOR Solution in Turkey

Even while professionals should be consulted before expanding a firm into a new nation, it is impossible to be familiar with every nation’s payroll, tax, and labour legislation. Your company will expand globally with the aid of an EOR solution offered by a team of experts. We will hasten the growth of your company through our thorough analysis of Turkish legislation and personnel procedures. In order to run and grow a firm, managing employee life cycles and dealing with HR-related issues is crucial. It takes a lot of time and money to complete other duties, such as issuing work licences and requesting employee visas. 

Payroll Outsourcing through an Employer of Record

The major objective of the EOR solution is to identify the top talent in Turkey. Our business provides highly personalised HR services. For several local and international businesses, our working techniques have shown to be effective. To simply summarise the services we provide, our professionals can help you with, 

• Hiring and onboarding
• Payroll 
• Taxation
• Probation
• Termination
• Employment contracts and related compliance such as leaves and remuneration
• Visas
• Work permits
• Incorporation

Types of Visas in Turkey

The sort of Turkey visa you require depends on your trip objectives and is available in a variety of forms.

Type of Visa	Explanation
Short-Term Visa	Regardless of the reason for travel, short-term visas in Turkey have a maximum validity of 180 days; however, the actual length of stay should not exceed 90 days. The Provincial Directorate of Migration Management is where people must apply for a short-term residency permit if they want to stay in Turkey for an amount of time that is greater than the 90-day maximum. The first 90-day duration of a citizen’s stay in the nation might be extended by obtaining a short-term residency permit. This procedure promotes longer stays for visitors in Turkey and assures compliance with immigration laws.
Turkey Tourism Visa	It is the kind of visa given to people who want to visit Turkey for tourism-related purposes. Within the time frames established for their own countries (usually 90 days), citizens of other nations who have reciprocal visa exemption agreements with Turkey are free from the requirement for a visa.
Turkey Education Visa	Citizens should apply for an education visa if they wish to take part in language programs, internships, or student exchange programs in Turkey.
Turkey Work Visa	Citizens must apply for this visa if they intend to work in Turkey. For a maximum of 90 days, a work visa can be obtained in place of a residence permit. Short-term residence must be applied for by those who want to stay longer in the nation.
Turkey Official Duty Visa	For entry into Turkey, anyone designated as a diplomatic messenger or on official business must apply for an official duty visa.
Turkey Transit Visa	A transit visa is required for anyone travelling via Turkey’s border crossings to a third nation.
Turkey Airport Transit Visa	An airport transit visa is required for those who will simply travel from the airport to a third nation, not entering it.
Other Visas	People who intend to visit Turkey for objectives other than those listed should apply for this visa. Examples include archaeological digs, film and documentary production, family reunion, and medical treatment.

Work Permits

Work permits are required for employment in Turkey and are applicable to all immigrants.

Permanent work permit

Foreign nationals who have held a work permit in Turkey for at least eight years are eligible for an indefinite work permit.

Temporary work permit

An individual is qualified to get a temporary work permit from the designated governing body once their application for a work permit has been granted by the Ministry of Labor for a period of one year. They are able to work lawfully in Turkey for the allotted time thanks to this temporary work visa.

The employee has the opportunity to request a work permit extension for an extra two years if necessary after the first year of their original authorized working period has passed. The individual is now able to continue working lawfully in the nation.

Additionally, the worker qualifies for a three-year work visa extension after successfully working in Turkey for three years in the same profession. In contrast to earlier permits, this one gives the employee the discretion to select their employer, giving them the freedom to work for the firm of their choice.

These extensions of work permits make it easier for people to work legally in Turkey, enabling them to maintain their professional endeavours and make contributions to the labour force there.

Independent work permit

Not all foreign nationals are eligible for the independent work permit, which is issued for a set amount of time. It is granted under specified conditions and is given by the Ministry of Labor and Social Security.

The independent work permit is provided in accordance with the rules established by the Ministry to people who satisfy the following requirements:

• Basic Education: The candidate should have a basic education that demonstrates they are qualified for the job they are applying for.
• Work Experience: To be eligible for an independent work visa, you must have prior job experience. The candidate must have a history of relevant professional experience.
• Contributions to Science and Technology: People who have significantly advanced science and technology may qualify for an independent work visa. This clause acknowledges the importance of their knowledge and efforts in these fields.
• Minimum Investment: Investors who want to make a minimal investment in Turkey may also be given an independent work permit. The authorities decide on the precise amount needed.

These requirements aid in ensuring that the independent work permit is only given to those who are capable of making a valuable contribution to the labour force and economy of Turkey.

Turquoise cards

The Turquoise Card is a special permission that grants scientists, sportsmen, artists, and foreign nationals who invest in or acquire property in Turkey the right to favoured citizenship and indefinite employment.

Workers can get work permits from the Ministry of Labor. All foreign workers are given work permits, as are businesses that want to hire foreign workers.

This government agency was established to choose, examine, and approve the work permits given to foreign workers who wish to work in Turkey.

We sponsor the Turkey work licences needed by your staff there as your EOR. You may concentrate on your objectives for company development while we handle the processing of work permits and visas for your staff because we are handling this obligation on your behalf.

Payroll & Taxes in Turkey

Payroll in Turkey

To ensure compliance with local labour regulations and effectively manage employee compensation and benefits in Turkey, foreign companies must establish a payroll system. There are several options available for companies to choose from:

• Incorporating a separate legal entity and managing the payroll internally with an in-house HR department. This approach involves creating a separate entity in Turkey and handling all payroll responsibilities locally.
• Setting up a remote payroll by integrating Turkish employees into the parent company’s existing payroll system. This method allows for centralised payroll management, utilising the parent company’s infrastructure and resources.
• Payroll outsourcing in Turkey through a collaboration with a local company that specialises in HR tasks. With this option, the local company takes care of payroll administration while leaving the employer responsible for any associated liabilities.
• Opting for payroll outsourcing in Turkey with a global Employer of Record (EOR) service. This solution allows companies to outsource their payroll management to a global provider that ensures full compliance with local laws and regulations.

These options provide flexibility for foreign companies to choose the most suitable approach for their specific needs and resources. By implementing an efficient payroll system, companies can navigate the Turkish tax system and pay structure smoothly while complying with local payroll requirements.

Taxes in Turkey

Taxes	Explanations
Personal Income Tax	Personal income tax rates are progressive.  Income Range (TRY) and Tax (%) are mentioned below: Under 24,000: 15 Between 24,000 and 53,000: 20 Between 53,000 and 190,000: 27 Between 190,000 and 650,000: 35 Above 650,000: 40
Social Security Contributions for Employers and Employees	In Turkey, all employees making between TRY 98 and 735 per day must pay social security contributions. These contributions are the responsibility of both companies and employees.  Employers are obligated to pay into Social Security Contributions at a rate ranging from 15.5% to 20.5% of the employee’s earnings. The precise proportion depends on a number of variables, including the job’s nature and the rules that apply.  On the other side, employees are required to withhold 14% of their wage as their portion of Social Security Contributions.  These payments are essential for supporting Turkey’s social security system and maintaining the provision of employee welfare and social benefits.
Corporate Tax	22%
Value-added Tax (VAT)	18%
Tax Returns	Tax returns must be filed by March 31.
Inheritance Tax	10%
Gift Tax	30%
Financial Year	calendar year (from January 1 to December 31), however a different fiscal year is acceptable.

There are three main types of businesses that may be founded in Turkey, each with specific criteria and benefits:

• Turkish Limited Liability Company: This business structure is best suited for small and medium-sized enterprises as well as projects. With a minimum capital requirement of 10,000 TRY, formation costs are reasonably modest. There can be a minimum of one shareholder and a maximum of 50 shareholders in a Turkish Limited Liability Company. Shareholders’ responsibility is only as much as their individual capital contributions.
• Joint Venture Corporations: Joint Venture Corporations are formed to carry out a particular business project under a chosen commercial name. Limited liability applies to all shareholders in this form of organisation. For Joint Venture Companies, there is no minimum capital requirement as there is for other business kinds.
• Joint Stock Companies: The division of the capital into shares that are distributed among the shareholders defines joint stock companies. Shareholders’ liability is restricted to the amount of their shares in the company’s registered capital. A joint stock company must have at least five shareholders and TRY 50,000 in capital in order to be incorporated in Turkey. Before the business may be formally registered with the Turkish government, at least 25% of the capital must be paid.

These many types of companies provide diverse degrees of flexibility, capital needs, and liability protection. To choose the best company structure for their unique goals in Turkey, business owners and investors must carefully analyse their business demands and consult with legal and financial experts.