Employing in Turkey

Turkey's employment landscape is marked by its rich cultural heritage and strategic geographical position. Navigating employment laws in Turkey requires adherence to the Labour Law, ensuring compliance with social security regulations, and fulfilling tax obligations as outlined in the Income Tax Law. Employers must be attentive to the dynamic regulatory environment, balancing both local customs and legal requirements.

TopSource Worldwide can be a valuable partner for businesses navigating the complex employment landscape in Turkey. With expertise in local labour laws and compliance requirements, TopSource assists companies in managing their workforce efficiently while adhering to Turkish regulations. Our approach helps in fostering a compliant and culturally aware workplace, essential for business success in Turkey.


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.


Global Employee Cost Calculator

Estimate the cost of your new hire with our calculator. Simply enter their location and salary information in to this handy tool to see what will be spent in employment costs each month.


Hear from our clients about our EOR solutions in Turkey

"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

”TopSource Worldwide has a detailed and methodical onboarding process that made it easy for us to get set up and running with our UK employees. They were able to take the worry out of trying to comply with all local laws and regulations. Because they have this knowledge we do not have to research on our own and hope we are in compliance. This has saved us hours of time and gives both the company and employees a sense of security."

Client based in Ft Worth, Texas, USA

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.

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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.

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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.

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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.

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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.

Social Security System

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.

Minimum Living Allowance (MLA/AGI)

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

Other statutory benefits

Employers' costs

Social security contributions are deducted from an employee’s gross earnings in the form of e-declarations by the 26th of each month.

Employer’s Contribution (%)
Employee’s Contribution (%)
Maximum Threshold (TRY)
Social Security Contributions (SSI)
Unemployment Insurance

Breakdown of SSI contributions

Employer Contribution (%)
Employee Contribution (%)
Short-term social security
Disability, old age, and death
Health Insurance
Unemployment insurance

Statutory insurances

This is covered as part of the social security contributions: 7.5% (employer); 5.0% (employee). Universal Health Insurance entitles the employee to free healthcare in any SGK-regulated hospitals or practices.

Contractual provisions

Contract of Employment

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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Rules of Registration

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.

Working Hours

The maximum regular working hours is 45 per week and an employee must not work more than 11 hours in one day.

Severance Pay

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.

Other contractural provisions

Notice period

The minimum notice period for regular employment depends on the employment duration. For regular terminations, both the employer and employee must abide by the notice period. If an employer fails to comply by these terms, they must pay full compensation to cover the entitled notice period. In addition to this, a minimum of two hours’ paid leave per day must be awarded as job searching entitlement.

Length of Service
Notice period
0-6 months
2 weeks
6-18 months
4 weeks
18 months – 3 years
6 weeks
More than 3 years
8 weeks

Rest breaks

Turkish Labour Law prescribes the minimum rest periods for employees:

Work period
Rest period entitlement
< 4 hours
15 minutes
4 hours > 7.5 hours
30 minutes
>7.5 hours
1 hours

Holiday & leave

Holiday allowance

Holiday entitlement is accrued from the first day of employment but can only be used once the employee has completed one full year. Any unused annual leave may be carried forward to the following year.

The minimum entitled days are based on the employment duration:

  • 1-5 years – 14 days
  • 5-15 years – 20 days
  • 15+ years – 26 Days

Sick leave

An employee is not entitled to sickness pay for the first two days of illness. However, it is common for employers to voluntarily offer payment to support their employees during sick leave. Following this, from the third day of leave, the social security system (SSI) will cover the remaining sickness for any documented illness, provided that the employee has paid a minimum of 90 days of short-term insurance premium in the previous year. This remuneration can take up to two months to receive, therefore it common for an employer to continue to pay their employee during sickness leave and be refunded once the employee has received the social security payments.

It is important to note that social security will cover only a percentage of the employee’s salary during sick leave:
(two-thirds for outpatient illnesses and half for inpatient illnesses). It is, therefore, at the employer’s discretion to decide whether they pay the employee’s regular salary or make adjustments based on the SSI payments.

If sick leave exceeds six weeks of the employee’s notice period, the employer has the right to terminate the contract, but must pay severance pay.

Any scheduled annual leave must be paid before the leave is taken.

Employ and pay anywhere

Specialising in multi-country payroll solutions

TopSource Worldwide offers comprehensive payroll outsourcing services, ensuring seamless and accurate management of your organisation's payroll functions. With cutting-edge technology and a team of experienced professionals, we handle payroll processing, tax compliance, and regulatory requirements with precision.

Calculate Your Employer of Record Taxes in Seconds

Employment Cost Calculator in Turkey

Our Employment Cost Calculator simplifies complex tax calculations for global businesses. Accurately assess tax obligations, ensuring compliance with local regulations. Streamline payroll management effortlessly with our user-friendly tool, providing transparency and efficiency in international workforce taxation.

In addition to calculating your EOR taxes, our calculator can also help you:

  • Understand the different types of EOR taxes
  • Stay up-to-date on the latest changes to EOR tax regulations
  • Avoid penalties for non-compliance

Employer of Record FAQ

Frequently Asked Questions about Turkish employment solutions

What is an Employer of Record in Turkey?

An Employer of Record (EOR) is a professional services provider that assumes the responsibility of being the legal employer for a company's workforce in Turkey. This entails managing tasks such as payroll processing, tax withholding, benefits administration, and ensuring compliance with local labour laws and regulations.

How do global employment services work?

Global employment services operate as a comprehensive solution for businesses seeking to expand their workforce across borders. These services, often provided by Employer of Record (EOR) companies like TopSource Worldwide, streamline the complexities of international employment.

What are the benefits of working with an Employer of Record in Turkey?

Employer of Record companies assume the legal responsibilities associated with employment, alleviating the burden of compliance, payroll, and HR management in Turkey. This allows companies to expand globally without the complexities of establishing legal entities in each location.

What is the difference between EOR & PEO?

An EOR acts as the legal employer, handling tasks like payroll, tax compliance, and benefits administration. This allows companies to expand internationally without establishing legal entities. On the other hand, a PEO shares employer responsibilities with the client company, often co-employing workers.

How are employer payroll taxes calculated in Turkey?

Calculating employer payroll taxes involves understanding the various taxes associated with employing workers and complying with tax regulations in Turkey. Key components include federal and state income taxes, Social Security, Medicare, and unemployment taxes.

What global employment solutions does TopSource offer?

TopSource Worldwide facilitates hassle-free global expansion by acting as the legal employer, handling payroll, tax obligations, and HR responsibilities. With expertise in global entity management, TopSource assists businesses in navigating the intricacies of legal structures across borders.

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