The Turkey EOR solution takes care of your payroll, administrative duties, local tax and compliance, human resource (HR), visa, and mobility needs. Because of our tech-enhanced, integrated HR platform and global network of professionals spanning over 150 countries, we are the industry leaders in EOR services. The capable assistance of our global EOR services may expedite and simplify the difficult, time-consuming process of hiring and onboarding employees for companies looking to grow in Turkey. To use our services, get in touch with Marzuna specialists right now.
The Turkish government has meticulously crafted its business regulations with the aim of attracting a wide spectrum of international businesses, from well-established corporations to ambitious startups. Turkey has placed a paramount emphasis on fostering foreign investments, thus fostering a business-friendly environment that now offers investors the golden opportunity to launch new ventures or expand their existing ones.
Within Turkey, numerous sectors stand out as highly profitable commercial opportunities. The realms of tourism, hotel and restaurant operations, construction, agriculture, and investments in gold and oil refining have, over time, demonstrated a consistent track record of delivering substantial returns on investments.
When considering employment or business operations in Turkey, it is of utmost importance to have a comprehensive understanding of Turkish labor laws. These regulations meticulously govern the working conditions and responsibilities of contract employees. By acquiring a firm grasp of these rules, one can operate within a stable and predictable legal framework, ensuring that both employers and employees are treated fairly and justly.
| Entitlements | Explanations |
|---|---|
| The minimum wage in Turkey | The monthly minimum wage is TRY 2,850.50. |
| Working hours |
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| 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 |
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| 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 |
The second section of this document delves into the intricacies of employment contracts, elucidating their various types, interpretations, and prerequisites in compliance with the stipulations set forth in the Turkish Labor Law of 4857. It’s important to recognize that there are no rigid, predefined templates for employment contracts. The flexibility to craft a contract tailored to the specific needs and circumstances is a shared prerogative of both employer and employee, provided it aligns with the legal framework.
As per Turkish Employment Law, employers and employees can enter into one of four primary categories of employment agreements:
Employers must carefully consider these options and select the type of contract that best aligns with their business requirements, employee rights and responsibilities, and the nature of the job, all while adhering to the relevant legal provisions.
For international businesses operating in Turkey without local representation, drafting comprehensive employment contracts that comply with Turkish employment contract laws can be a time-consuming process. To facilitate the hiring and onboarding of personnel in a legally compliant manner, our end-to-end Employment Outsourcing (EOR) solution for Turkey includes pre-made employment contract templates. For more information on creating contracts and hiring top talent in Turkey, consult with our experts.
An employment contract stands as a legally binding accord between an employer and an employee, whereby the employee commits to perform work and the employer pledges to remunerate the employee for their services. These contracts may span a defined duration or continue indefinitely, accommodating various employment arrangements, including full-time, part-time, probationary, and others. It’s important to underscore that contracts exceeding a year’s duration must be documented in writing.
The Labor Law meticulously outlines the parameters for working hours. A standard workday should not extend beyond 11 hours, and a week’s labor should not surpass 45 hours, evenly distributed across the working days.
The cumulative hours of overtime work in a calendar year should not exceed 270 hours. Any hours worked beyond the stipulated 45 hours per week are considered overtime, entitling employees to compensation at a rate 1.5 times their regular hourly wage.
The Ministry of Social Security and Labor establishes the minimum wage, which currently stands at TRY 2850.50 in Turkey. This figure serves as the baseline wage that companies must adhere to as the minimum remuneration for their employees.
To ensure compliance with labor laws and safeguard the rights and obligations of all parties involved in the employment relationship, it is imperative for both employers and employees to have a comprehensive understanding of these requisites.
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.
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.
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:
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.
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.
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,
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 are required for employment in Turkey and are applicable to all immigrants.
Foreign nationals who have held a work permit in Turkey for at least eight years are eligible for an indefinite 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.
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:
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.
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.
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:
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 | Explanations |
|---|---|
| Personal Income Tax |
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| 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. |
In Turkey, there are three primary avenues for establishing businesses, each offering distinct criteria and advantages:
Turkish Limited Liability Company: This business structure is ideally suited for small and medium-sized enterprises and projects. It demands a reasonable minimum capital of 10,000 TRY, keeping formation costs modest. A Turkish Limited Liability Company can have a minimum of one shareholder and a maximum of 50 shareholders. Importantly, shareholders are liable only up to the extent of their individual capital contributions.
Joint Venture Corporations: These entities are established to execute specific business projects under a chosen commercial identity. In Joint Venture Corporations, limited liability protection is extended to all shareholders, and there’s no obligatory minimum capital requirement, setting it apart from other business forms.
Joint Stock Companies: Joint stock companies distribute their capital into shares allocated among the shareholders. Shareholders’ liability is confined to the value of their shares in the company’s registered capital. To be incorporated in Turkey, a joint stock company must have a minimum of five shareholders and a capital of at least TRY 50,000. It’s worth noting that before formal registration with the Turkish government, a minimum of 25% of the capital must be paid in.
These various business structures offer a range of flexibility, capital prerequisites, and liability protection. To make an informed choice regarding the most suitable company structure for their specific objectives in Turkey, business owners and investors should conduct a thorough analysis of their business needs and seek guidance from legal and financial experts.
