Hire in Turkey
Turkey PEO &
Employer of Record
Hire & manage teams remotely in Turkey without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Business Language
Turkish
Salary Currency
Turkish Lira (TRY)
Payroll tax
20.5%
Payroll Cycle
Monthly
Time zone
GMT+3
Capital city
Ankara
Hire Employees in Turkey
The NNRoad Advantage ☺
Pay as you go
Global account manager
Compliance
Fast Onboarding
Foreigner Visas
Platform
Employer of Record in Turkey
01.
Candidate Selection
02.
Employee Onboarding
03.
Compliance & Payroll
04.
Payroll Reporting
Recruiting process outsourcing – including but not limited to resume screening, shortlisting candidates, coordination for interviews, and assistance for salary negotiation.
Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).
On-boarding and off-boarding employees following labor law practice.
Complete payroll solution and benefit administration
Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claims, and leave employee database management accordingly to the local law.
Mandatory insurance compliance (i.e. pension, labor and health insurance) according to the local labor laws.
Payment management (Invoicing customers/clients and vendor payments).
Work VISA application assistance, if needed.
Local individual income tax reporting.
Payroll & PEO in Turkey
01.
Compliance & Payroll
02.
Payroll Reporting
Registering the necessary company and personnel information for payroll calculation in the payroll software and system
Monthly Payroll Processing
Year-End Adjustment and Annual Declaration
Taxes & Payroll in Turkey
Employee Income Taxes:
Individual income tax in Turkey is imposed on the worldwide income of individuals who are residents in Turkey. The tax system is progressive with tax rates ranging from 15% to 35% for the tax year 2021. Taxpayers are required to file their tax returns and pay any tax due by the end of March of the following year.
Turkey also has a system of withholding tax, which requires employers to withhold tax from their employees’ salaries and remit it to the tax authorities on their behalf. There are also various tax deductions and credits available to taxpayers, including deductions for charitable donations and health insurance premiums. Non-residents are subject to tax only on their Turkish-source income.
Tax Brackets
20%: 22,001-49,000 TRY
27%: 49,001-180,000 TRY
35%: 180,001 – 600,000 TRY
Sample Calculation
27% * 130,000 = 2800
20% * 28,000 = 1200
15% * 22,000 = 450
35,000+5600+3300 = 43,900
Yearly income tax = 43,900 TRY
Employer Costs in Turkey
Employer costs in Turkey include various social security contributions and other benefits that employers are required to provide to their employees. The social security system in Turkey is divided into several funds, including the Social Security Institution (SGK), the Labor Market Fund, and the Occupational Accidents and Diseases Fund. Employers are required to make contributions to these funds on behalf of their employees, which cover healthcare, retirement benefits, and other social security benefits.
The rate of contributions varies depending on the employee’s salary and the type of employment contract. In addition to social security contributions, employers are also required to provide their employees with paid annual leave, sick leave, and severance pay. The amount of these benefits is also determined by the employee’s salary and length of service.
Employer Contribution
Employers must pay contributions based on the salary of their employees:
2% – Short Term Insurance Branch Premium
11% – Pension & Disability fund
7.5% – Health Insurance
2% – Unemployment Insurance
Employee Contribution
9% – Pension & Disability fund 5% – Health Insurance 1% – Unemployment Insurance
Benefits & Insurance in Turkey
In Turkey, there are several types of benefits and insurance available for individuals and families. The government provides mandatory health insurance through the Social Security Institution (SGK) for all citizens and legal residents.
Private health insurance is also available, and many employers offer it as part of their benefits package. In addition to health insurance, there are other types of insurance available in Turkey, such as life insurance, home insurance, and car insurance. The government also provides several social welfare programs, including disability benefits and retirement pensions.
The Turkish Ministry of Health manages all healthcare insurance and other social security benefits in Turkey. All citizens of Turkey are entitled to social security. Employers with five or more employees are required to work with private pension savings and investment services.
Working Hours in Turkey
The maximum working hours in Turkey are regulated by the Labor Law and vary depending on the industry and type of work. The standard work week in Turkey is 45 hours, which may be spread over six days or five days, depending on the industry. However, employees cannot work more than 11 hours in a day or 50 hours in a week, including overtime.
Working Hours Per Week
Working time is limited to a maximum of 45 hours per week. Working hours shall be divided evenly by the days of the week worked at the establishment unless otherwise specified. Working time may be divided by the days of the week worked in various forms if the parties agree, provided that the daily working time does not exceed eleven hours. In this situation, the employee’s average weekly working hours must not exceed regular weekly working time within a two-month period.
Overtime
Overtime is defined as working more than the normal daily or weekly working hours, and is subject to a premium pay rate of at least 50% of the employee’s regular wage. Night work is also subject to additional pay and limited to a maximum of 7.5 hours per night. In addition, employees are entitled to at least one day off per week, which is typically Sunday. Employers are required to maintain accurate records of employee working hours and provide employees with regular breaks during the workday.
Termination Laws in Turkey
Turkey’s termination laws govern the rights and obligations of both employers and employees in the event of employment termination. Under Turkish law, employers can terminate an employee’s contract for reasons such as misconduct, poor performance, redundancy, or violation of company policies. However, the termination must be in accordance with the employment contract, and the employee must be given adequate notice and severance pay, as required by law.
Additionally, employers must comply with certain procedures, such as conducting an investigation, providing the employee with the opportunity to respond, and documenting the termination process.
Notice Period
The contract shall then terminate:
- in the case of an employee whose employment has lasted less than six months, at the end of the second week following the serving of notice to the other party;
- in the case of an employee whose employment has lasted for six months or more but for less than one-and-a-half years, at the end of the fourth week following the serving of notice to the other party;
- in the case of an employee whose employment has lasted for one-and-a-half years or more but for less than three years, at the end of the sixth week following the serving of notice to the other party;
- in the case of an employee whose employment has lasted for more than three years, at the end of the eighth week following the serving of notice to the other party.
Employment Contract in Turkey
Employment Contract
Employment contracts with a specified period of one year or more must be in written form. These written documents are exempt from stamp duty and other taxes. Employment contracts can be for a certain amount of time (fixed term) or for an indeterminate amount of time (open-ended). In terms of working conditions, these agreements can be made on a full-time or part-time basis, with a trial (probation) period, or in other ways.
The employment contract will be considered a part-time contract if the employee’s regular weekly working time is significantly reduced in comparison to a comparable full-time employee.
Probation Period
If the parties have agreed to include a trial clause in the employment contract, the duration of the trial term shall not exceed two months. However, the trial period may be extended up to four months by collective agreement. Within the trial term the parties are free to terminate the employment contract without having to observe the notice term and without having to pay compensation.
Types of Leaves in Turkey
Turkish labor law provides various types of leaves that employees can use for personal, medical, or legal reasons. The types of leaves available to employees depend on their length of service, employment status, and the reason for the leave. Paid annual leave is granted to all employees based on their length of service, and the amount of leave increases with seniority. Sick leave is provided to employees who are ill or injured, and the duration of the leave depends on the severity of the condition.
Maternity leave is available to female employees who are pregnant or have recently given birth, and the duration varies based on the number of children and other factors. Paternity leave is also available to male employees who have a new child. In addition to these types of leave, employees can take unpaid leave for various reasons, such as military service, education, or personal circumstances.
Annual Leave
Employees who have completed a minimum of one year of service in the establishment since their recruitment, including the trial period, shall be allowed to take annual leave with pay.
The length of the employee’s annual leave with pay shall not be less than:
a. 14 days if the length of service is between 1 and 5 years, (5 included);
b. 20 days if it is more than 5 and less than 15 years;
c. 26 days if it is 15 years and more (15 included).
Sick Leave
According to Turkish labor law, upon submission of a confirmative medical report, all employees are entitled to a maximum of one week of paid sick leave.
The first two days of sick leave are unpaid; in other words, the company or the government have no need to compensate the employee. In practice, however, most employers will make those payments willingly to help the employee and avoid salary loss.
Starting on the third day, SSI (Social Security) covers two-thirds of an employee’s daily salary for outpatient illnesses and one-half of an employee’s daily salary for inpatient illnesses. These payments are paid directly to the employee in the event that their company fails to pay them while they are on leave.
Maternity Leave
In general, female employees are not permitted to work for a total of sixteen weeks, including eight weeks prior to and eight weeks following confinement. In the event of multiple pregnancies, an additional two weeks must be added to the eight weeks before to confinement during which female employees are not permitted to work. However, a female employee with a suitable health condition as determined by a physician’s certificate may work at the firm until three weeks before delivery if she so desires.
The female employee shall be granted leave with pay for periodic examinations during her pregnancy. If the female employee desires, she may take an unpaid absence of up to six months after the sixteen-week period has expired, or after the eighteen-week period has expired in the case of multiple pregnancies.
Public Holidays in Turkey
Public holidays in Turkey include both national and religious observances. National holidays include New Year’s Day (January 1), National Sovereignty and Children’s Day (April 23), Labour Day (May 1), Youth and Sports Day (May 19), Republic Day (October 29), and Victory Day (August 30).
Religious holidays follow the Islamic calendar and include Ramadan Bayramı (Eid al-Fitr), Kurban Bayramı (Eid al-Adha), and the Islamic New Year (Hijri New Year). During these holidays, many businesses and government offices are closed, and people may celebrate with family gatherings and traditional foods.
Public Holidays
- New Year’s Day – January 1st
- National Sovereignty and Children’s Day – April 23rd
- Ramazan Bayramy and Labor Day – May 1st to May 4th
- Ataturk Memorial, Youth and Sports Day – May 19th
- Kurban Bayramy – July 8th to July 12th
- Day of Democracy and Freedoms – July 15th
- Victory Day – August 30th
- Republic Day – October 28th and 29th