Our Expertise
Managing a global workforce in Turkey
Managing a global workforce in Turkey involves understanding the intersection of diverse cultural influences and a complex regulatory framework. Employers must stay informed about changes in labour laws, social security regulations, and tax requirements. Leveraging local expertise and cultural insights can be invaluable in navigating these challenges. Effective workforce management in Turkey relies on a blend of legal compliance, cultural sensitivity, and proactive engagement with the evolving business landscape.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Turkey
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Turkey. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Turkey-based employees.
End-to-end Turkey payroll services
Looking to expand into Turkey? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Turkey expansion initiatives.
Global entity management
Venturing into the Turkish market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Turkey
Entering the Turkish market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Turkey.
Turkey Insights
Key insights into Turkey's landscape
VAT rates: Turkey has a standard VAT rate of 18%, with reduced rates of 1% and 8% for specific goods and services.
Ease of Doing Business rank: Turkey ranks 54th in the World Bank's Ease of Doing Business Index, reflecting a moderately favourable business environment.
Consumer Confidence Index: As of 2022, Turkey's Consumer Confidence Index was 73.6, indicating cautious economic sentiment.
Employee maternity/paternity leave: Maternity leave is 16 weeks, and paternity leave is 5 days, providing support for new parents in the workforce.
Employee termination period: Standard notice for termination varies but is generally 2 weeks, following employment contract terms and labour regulations.
Employee salary pay date: Wages are typically paid monthly, with specific pay dates outlined in employment contracts and subject to labour laws.
Bank holidays: Turkey observes national holidays, including New Year's Day, Republic Day, and Sacrifice Feast, with a total of around 14 public holidays in a year.
An overview of the main statutory benefits
In Turkey, it is mandatory to register the employee for a private pension scheme equal to 3% of their salary.
After one month of employment, the employee can opt out.
The Turkish government additionally contributes 25% towards private pension contributions (subject to a maximum).
Turkey has a comprehensive public healthcare system covered by Universal Health Insurance (Genel Sağlık Sigortası). This is funded by the insurance premiums paid by employers and employees. Anyone registered with the SGK is entitled to subsidised public healthcare.
Private healthcare options are also available, and employees may choose to take out private healthcare insurance with a recommended insurance provider.
The Turkish Social Security Institution (SSI) – Sosyal Güvenlik Kurumu (SGK), was established in 2006. The system is similar to a Bismarck model, whereby premiums are paid into one collective fund by employers and employees and then reallocated to cover:
- short-term social security
- disability, old age and death
- health insurance;
- unemployment
Social security contributions are considerably high in Turkey but cover a generous range of benefits.
All non-national employees are eligible for social security benefits provided that they pay the contributions and meet the necessary requirements.
Employers are required to register all new starts with the SSI before their start date.
This refers to the percentage of the employee’s wage that is not subject to income tax. The MLA is calculated based on the annual gross minimum wage and takes into consideration the marital status and number of dependents of the employee.
The following rates of annual gross minimum salary are not subject to income tax:
- 50% for the employee
- 10% for the non-employed spouse (including those on a self-employed income)
- 7,5% for each of the first two dependent children;10% for third dependent child and 5% for the following dependent children (deduction applicable only to either mother or father)
Please note: In the application of MLA, dependent children are defined as:
- Under 25 for those still in education
- Under 18 for those residing with or being cared for by the tax payer
Contractual provisions
The contract of employment must be executed in Turkish and the native language of the employee.
Termination of contracts in Turkey can be complex and must comply by the regulations stated in the Turkish Labor Law.
Overtime is calculated by the hour at a rate of 1.5 times the normal hourly rate. All hours worked over the weekly maximum (45) must be calculated as overtime.
The total overtime hours worked cannot exceed 270 hours in a year.
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The employer must register the employee with the local Social Security Institution one day before their start date.
All employees should have a medical before commencing employment.
The maximum regular working hours is 45 per week and an employee must not work more than 11 hours in one day.
An employee is entitled to severance pay if a contract is terminated by the employer provided that they have been employed for more than one year.
Severance pay is calculated based on the employee’s last month’s gross salary and is exempt from income tax. Severance pay is only subject to stamp tax.
The current severance pay ceiling is 10,848.59 TL. (for the period: 01 January 2022 and 30 June 2022) and is updated every six months in January and July.
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