Employer of Record & PEO in Turkey
Hire & manage teams remotely in Turkey without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Turkey. Registering a legal entity in Turkey as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in Turkey in full accordance with local labor laws in under a week.
Employer of Record in Turkey
Employer of Record (EOR) services are for companies who do not have a legal entity in Turkey, but who want to hire in Turkey. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Turkey.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Turkey in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Turkey while NNRoad manages payroll & HR liabilities.
- Engaging employees through local labor contracts including contract administration, engagement, extension, termination and conversion to permanent hire
- On-boarding and off-boarding employees following local labor law practice
- Registration of employees with social security institution and with tax office
- Complete payroll solution and mandatory benefit administration
- Employee management according to local laws, including employee record, time keeping, bonus and allowance management, expense and claims, and leave employee database management
- Payment management, including invoicing customers/clients and salary payments
- Assistance with work permits, if required
Payroll & PEO in Turkey
Professional Employment Organization (PEO) services are for companies who have a legal entity in Turkey, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Turkey.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Turkey while NNRoad manages payroll & HR compliance.
- Registering and de-registering the necessary company and personnel information for payroll calculation in compliance with local rulesa
- Calculation of all SSI and tax calculations that are compulsory in Turkey
- Calculation of gross salary, salary deductions, such as social insurances, unpaid leaves, etc., and net salary based on information provided by the Company including irregular payments such as incentive/ bonuses etc
- Pro-rata calculation for people who join/resign
- Providing a monthly payroll summary to the Company
- Creation of standard reports and fulfilling all the legal processes of Payroll
Advantages of NNRoad's Turkey Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Turkey.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Turkey.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Turkey
Taxes & Payroll in Turkey
Employee Income Taxes:
Individual income tax rates in Turkey are based on progressive tax brackets.
15%: 0-22,000 TRY
20%: 22,001-49,000 TRY
27%: 49,001-180,000 TRY
35%: 180,001 – 600,000 TRY
Yearly income = 180,000 TRY
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
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 Contributions:9% – Pension & Disability fund 5% – Health Insurance 1% – Unemployment Insurance
Working Hours in Turkey
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.
Benefits & Insurance in Turkey
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.
Termination Laws in Turkey
The terminating party must send notice to the other party before ending a continuous employment contract for an extended duration.
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;
d. 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.
Public Holidays in Turkey
Public Holidays in Turkey
- 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
Employment Contract in Turkey
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.
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
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).
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.
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.
Immigration Laws in Turkey
Foreign workers can be granted a work permit in Turkey with the following conditions:
- Valid passport
- Two photos taken within the last six months
- Police clearance certificate
- Job offer or employment contract
- Translated diploma or graduation certificate
- Medical insurance
- Proof of accommodation in Turkey
- Proof of round-trip flight