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Hire and manage employees in Turkey

As your Employer of Record (EOR) in Turkey, we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary.
Last updated:
January 22, 2025
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Table of Contents

General Overview

Turkey, strategically located between Europe and Asia, has a dynamic and growing economy driven by agriculture, manufacturing, and a burgeoning service sector. The country provides a robust legal framework for employee rights, making it an attractive destination for workers and businesses alike.

Employment Contracts

Employment contracts longer than 1 year must be in writing. Common contract types:

  • Indefinite-term contracts: Default employment type.
  • Fixed-term contracts: Used for specific tasks or events.

Probation Period

  • The probation period is capped at 2 months but can be extended to 4 months via collective bargaining agreements.
  • During this time, either party may terminate the contract without notice or severance obligations.

Working Hours

Standard workweek: 45 hours. Daily work hours: Maximum 11 hours. Overtime is capped at 270 hours annually and must be paid at a higher rate.

Vacation Days

Annual leave depends on the length of service:

  • 14 days for 1–5 years of service.
  • 20 days for 5–15 years.
  • 26 days for over 15 years.

Employees cannot waive their right to annual leave.

Sick Leave

Employees are entitled to sick leave in case of illness or injury.

  • If sick leave exceeds the notice period by 6 weeks, the employer may terminate the contract with severance.
  • Sick pay is provided through government disability programs, not by employers.

Wages and Salary Payment

  • Minimum wage for 2024: Approximately €400 per month (updated annually).
  • Salaries are typically paid at the end of the month or within the first 5 days of the following month.

Public Holidays

Turkey observes 15 public holidays, including:

  • January 1: New Year’s Day.
  • April 23: National Sovereignty & Children’s Day.
  • May 1: Labor and Solidarity Day.
  • Religious holidays: Ramadan (3.5 days) and Eid al-Adha (4.5 days).

If employees work during public holidays, they are entitled to additional pay.

Employer Taxes

  • Employers contribute 20.5% of gross wages to social security.
  • Unemployment insurance: 2% of gross wages.

Employee Taxes

  • Employees pay 14% of gross wages to social security.
  • Income tax rates are progressive, ranging from 15% to 40%.

Notice Period

The minimum notice period depends on the length of employment:

  • 2 weeks: Less than 6 months.
  • 4 weeks: 6–18 months.
  • 6 weeks: 18 months to 3 years.
  • 8 weeks: Over 3 years.

Termination and Severance Pay

  • Employees with 1 year of continuous employment are eligible for severance pay.
  • Severance is calculated as 1 month’s gross salary per year of service, capped by government regulations and exempt from income tax.
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