Employer of Record in Turkey

Skuad’s Turkey EOR solution manages your human resource (HR) tasks and payroll, local tax and compliance, administration, visa, and mobility needs. Our tech-enriched, integrated HR platform and network of experts in more than 150 countries make us the industry leaders in EOR services. The able assistance of our global EOR services can streamline and expedite the difficult, time-consuming process of employee hiring and onboarding for companies looking to expand their business in Turkey. To avail yourself of our services, get in touch with Skuad experts today.

Turkey at a Glance

Area: 785,350 square kilometers

Population: 84,339,067 people (2020)

Currency: Turkish lira (TRY)

Capital City: Ankara

Official language: Turkish

Literacy rate: 96.2 %

Gross Domestic Product (GDP): USD 7.99 billion (2020)

Employment in Turkey

The Turkish Republic is one of the powers where the government is very loyal to foreign investments in the economy. The business policy of the country has been designed to attract the interest of experienced and novice business people from abroad. The government has created the most favorable conditions for business development, where each investor can not only try to introduce new business ideas but also develop their existing businesses.

The most popular types of business in the country that bring in stable profits are,

• Tourism
• Hotel and restaurant businesses
• Construction
• Agriculture
• Investments in the oil refining and gold mining industries

If you are planning to work in Turkey, it is important to understand Turkish labor laws. The labor law manages the working conditions and obligations of people who work under an employment contract.

Employee Entitlements in Turkey

The minimum wage in Turkey

The minimum salary is TRY 2,850.50 per month.

Working hours

• Maximum 45 hours per week
• Maximum 11 hours/day
• Night work: From 8 pm to 6 am. 
• Note: It is forbidden to work for more than 7.5 hours in the night work period.

The minimum age to work

The minimum age of labor is 16 years.

Overtime compensation

According to the law, overtime work is paid with an additional payment of one and a half times over the employee’s standard pay rate. 

The amount of overtime cannot exceed 270 hours/year.

Annual leave

• According to the Turkish Labor Law, all the workers who have successfully performed one year of work are entitled to receive annual leave from the employer.

• According to article 53 of Labor Law No. 4857, the age and years of service of an employee will be taken into account when calculating the number of days of annual leave to which he is entitled.

• Between 1 and 5 years of work in the same company, two weeks of vacation
• Between 5 and 15 years of work in the same company, 20 days of paid vacation
• More than 15 years, 26 days of paid vacation

Paid public holidays

• January 1: New Year
• April 23: National Sovereignty and Children’s Day
• May 1: Labor and Solidarity Day
• May 19: Commemoration of Atatürk, Youth and Sports Day
• July 15: Democracy and National Unity Day
• August 30: Victory Day
• October 28 to 29: Republic Day

Medical/sick leave

• According to Article 46 (c) of the Turkish Labor Law, all employees are entitled to a maximum of one week of paid sick leave if they submit a confirmatory medical report. The sick leave can be extended at the discretion of the employer. 
• Long sick leave can be granted without pay. If the sick leave exceeds six weeks beyond the notice periods determined by labor law, the employment contract may be terminated without prior notice and with severance pay.
• Employers may have the right to terminate employment contracts without prior notice if the sick leave exceeds six weeks after the previous notice periods.

Maternity leave

• The Turkish labor law allows a pregnant woman to take maternity leave of 16 weeks (eight weeks before and eight weeks after giving birth). Thus, not all leaves can be taken after delivery.
• In the event of complicated pregnancies (twins or more), the maternity leave is extended to 18 weeks.
• A pregnant woman can work up to three weeks before delivery, and the remainder of the leave can be taken in addition to the leave taken after delivery, depending on her health and the baby’s health.
• After the birth, when the period of paid leave ends, a working mother can request six months of unpaid leave; this does not affect her vacation pay.
• During pregnancy, a working woman may be given time off for regular medical examinations.
• After delivery, an employee can request breaks in the workday, amounting to one hour and 30 minutes per day for breastfeeding.
• To be eligible for maternity leave, an employee must have an official medical report indicating the expected date of birth.

Special leaves

• Parents are allowed to take parental leave of up to three days.
• According to article 46 of the Labor code, all the workers can take three days of paid leave for their wedding.
• According to Article 46 (b) of the Turkish Labor Law, employees are entitled to (3) three days of paid leave in the event of the death of members of the employee’s family, such as mother, father, spouse, brother, sister, or child.

Employee health benefits in Turkey

• In Turkey, public and private health insurance is mandatory for employees. All the health and social protection activities are governed by the Ministry of Health in Turkey. 
• The Turkish constitution states that everyone has the right to social security. Public health insurance is automatically deducted from the employee’s salary.

Employees’ data protection rights 

The Data Protection Law under the labor code prevents the unlawful access and processing of employees’ personal data. 

Employees’ anti-discrimination rights 

Turkey’s anti-discrimination policies prohibit differential treatment or discrimination on the following grounds. 

• Language 
• Race
• Gender
• Ethnicity 
• Political opinions
• Religion 

To learn more about employment laws in Turkey, and employment agreements in Turkey, talk to the experts at Skuad.

Contractors vs. Full-time Employees

The second part of the 4857 Labor Law provides details on the types of contracts, definitions, and conditions to be complied with concerning employment contracts. The employment contract is not subject to a particular form. The employer and the employee can sign an agreement suitable for them without ignoring the limitations in the provisions of the law.  

According to Turkish Employment Law, employers can have four types of employment agreements with the employee.

• Temporary and permanent employment contracts,
• Definite and indefinite contracts,
• Part-time employment contracts, and
• On-call labor contracts.

Temporary Work Contract

The minimum work duration for a temporary contract ranges for work of up to six months; an employer can renew this contract twice for a maximum period of employment of 18 months.

Full-time Employment Contract/Indefinite Contract

Generally, a full-time employee is hired to work 45 hours in a workweek. The work hours can be unevenly distributed over a week but can never exceed 11 hours in a day.

Part-time Employment Contract

A contract for a part-time employee means that the standard weekly working time is significantly less than that of an employee who works full-time.

On-call Job and Project-based Employment 

Typically, work schedules are agreed upon in advance. When a project schedule has not been agreed upon, the weekly working time is limited to 20 hours. An employer needs to give notice to the worker when the work is available.

Drawing out detailed employment contracts that are complete in all respects and comply with the employment contract law in Turkey can be a tedious task for international companies that have no local liaison offices. Skuad’s comprehensive EOR solution for Turkey also includes templates of employment contracts, so that hiring and onboarding of the employees can be accomplished compliantly. Learn more from Skuad experts about hiring the best Turkish talent on both a contractual and full-time basis.

Hiring in Turkey

Employment Agreement in Turkey

It is a contract signed between the employee and the employer, in which the employee consents to work, and the employer agrees to pay wages for the completion of such work. Employment contracts are made for a definite or indefinite term. These contracts can be formed for full-time or part-time, probationary, or other types in terms of working styles. Contracts for more than one year must be in writing.

According to the Labor Law, the maximum working hours in an ordinary working day are 11 hours and 45 hours per week, which should be divided equally between the working days.

Total overtime hours of work may not be more than two hundred and seventy hours per year.

Hours that exceed the 45-hour limit per week will be considered as overtime, and the salary for each hour of overtime will be equivalent to one and a half times the normal hourly rate.

The Ministry of Social Security and Labor determines the minimum salary. The current minimum salary amount in Turkey is TRY 2850.50.

Job Portals in Turkey

Most employers in Turkey advertise their job openings on websites and portals, such as, 

• LinkedIn
• Turkey Talent
• Times Jobs

Skuad’s extensive, hyper-localized EOR solutions for Turkey make the hiring process easy and hassle-free. We handle all the complicated tasks related to payroll management and taxes in compliance with the local laws so that you can focus on other aspects of global expansion. Talk to Skuad experts now to learn more about hiring in Turkey.

Probation & Termination

Probation Period

An employee's probationary period can be up to two months. However, the probation time can be extended to a maximum of four months with the consent of the employee and the employer. During the probation period, either party may cancel the contract without prior notice.

Termination of Service 

If one of the parties (the employer or the employee) wishes to terminate the employment contract, both the parties are obliged to inform the other party before the termination is made under Labor Law No. 4857. 

The minimum period of notification before terminating the work contract between the employer and the employee is listed below.

Notice Period (Article 17) and Duration of Employment are mentioned below:

• Two weeks - From one to six months.
• Four weeks - From six months to eighteen months.
• Six weeks - From eighteen months to thirty-six months.
• Eight weeks - More than thirty-six- months.
  

To ensure your expansion endeavors adhere to the laws regarding probation and termination in Turkey, talk to Skuad experts and book a demo today.

EOR Solution in Turkey

While expanding business in a new country needs advice from experts, it is not possible to know all the labor laws and taxation and payroll policies of a country. An EOR solution provided by a team of professionals will help your business to grow internationally. Skuad’s deep research of Turkey’s laws and HR policies will expedite the expansion of your business. Managing the life cycle of an employee and handling HR-related matters plays an essential role in the operation and expansion of a business. Other tasks, such as providing work permits and applying for employees’ visas, also require significant time and resources. 

Payroll Outsourcing through an Employer of Record

Skuad’s EOR solution’s main aim is to find the best talent throughout Turkey. Skuad offers a highly customized HR service. Our working methods have proven to be successful to many companies, both domestic and foreign. To briefly cover the services we offer, our experts can assist you with, 

• Hiring and onboarding
• Payroll 
• Taxation
• Probation
• Termination
• Employment contracts and related compliance such as leaves and remuneration
• Visas
• Work permits
• Incorporation 

To avail of our bespoke EOR solution for Turkey, book a demo with Skuad experts.

Types of Visas in Turkey

There are many types of Turkey visas available; the purpose of travel determines what kind of visa you need to obtain.

Short-Term Visa

Short-term visas are issued within a maximum of 180 days, provided that they do not exceed 90 days.

• Short-term visas can be obtained within 180 days, not exceeding 90 days, regardless of the purpose of travel.
• Those who want to stay in Turkey longer than this period must apply to the Provincial Directorate of Migration Management and obtain a short-term residence permit.
• In this way, the length of stay of citizens in the country is extended.

Turkey Tourism Visa

It is the type of visa applied to those who wish to travel to Turkey for tourist activities. Citizens of countries with mutual visa exemption agreements with Turkey are exempt from visas within the periods determined for their own country (generally 90 days).

Turkey Education Visa

Citizens who want to participate in language courses, internships, or student exchange programs in Turkey should apply for an education visa.

Turkey Work Visa

Citizens who want to come to Turkey to work must apply for this visa. A work visa, which can replace a residence permit, can be obtained for a maximum of 90 days. Those wishing to stay longer in the country must apply for short-term residency.

Turkey Official Duty Visa

Persons appointed as diplomatic couriers or on official duty must apply for an official duty visa to enter Turkey.

Turkey Transit Visa

Citizens who will travel to a third country passing through Turkey’s border gates must obtain a transit visa.

Turkey Airport Transit Visa

Citizens who will only pass from the airport to a third country without entering the country must obtain an airport transit visa.

Other Visas

Persons who wish to travel to Turkey for reasons other than the specified purposes, such as archaeological excavations, film and documentary shootings, family reunification, medical treatment should apply for this visa.

Talk to us and get more information and guidance related to types of visas and work visa requirements in Turkey. Skuad can handle all your visa requirements and ensure the expansion process is not delayed. 

Work Permits

Employment in Turkey is subject to work permits that are applicable for immigrants coming to Turkey.

Permanent work permit

Foreigners who have a work permit in Turkey for a minimum period of eight years have the right to an indefinite period work permit.

Temporary work permit

• The persons whose application for a work permit is approved by the Ministry of Labor for one year can get a temporary work permit from the authorized body.
• After one year of the legal working period, the employee can get a work permit extension for two years if needed.
• After completing three years of work legally in Turkey, the employee can get a three-year work permit extension if the employee works in the same profession, but this time he can work with an employer of his choice.

Independent work permit

• Not all foreigners can benefit from the independent work permit granted for a certain period. This permit is given by the Labor and Social Security Ministry.
• According to the criteria from the Ministry, the Independent work permit is granted to the following persons:

• A person with a basic level of education
• A person with previous work experience
• Persons who have contributed to science and technology
• Investors with a minimum amount of investment to be made in Turkey

Turquoise cards

The Turquoise Card is a new permit that gives the right to privileged citizenship and indefinite work for scientists, athletes, artists, and foreign nationals who buy a house or invest in Turkey.

The Ministry of Labor grants work permits for workers. The work permit is granted to all foreign employees and companies that wish to employ foreigners.

This government body is formed to determine, inspect, and approve work permits granted to foreign employees who want to work in Turkey.

As your EOR service, Skuad sponsors the Turkey work permits required by your employees in Turkey. By taking over this responsibility on your behalf, you are free to focus on your business expansion plans while we take care of processing work permits and visas for your employees.

Contact us here to learn more. 

Payroll & Taxes in Turkey

Payroll in Turkey

Turkey’s comparatively straightforward tax system and pay structure indicate there are no major problems in payroll systems.

To recruit employees in Turkey and manage their compensation and other benefits following the local labor legislation, foreign companies must set up a payroll. This can be done in one of the following four ways.

• Incorporating a separate legal entity and handling the payroll management with an in-house HR department. 
• Setting up a remote payroll by adding your Turkish employees to your parent company’s payroll.
• Payroll outsourcing in Turkey in collaboration with a local company that handles HR tasks but leaves you in charge of liabilities. 
• Payroll outsourcing in Turkey with a global EOR service such as Skuad, which can handle your payroll while ensuring total compliance with the local laws. 

Taxes in Turkey

Personal Income Tax

The personal income tax rate is progressive. 

Income Range (TRY) and Tax (%) are mentioned below:

• Under 24,000: 15
• Between 24,000 and 53,000: 20
• Between 53,000 and 190,000: 27
• Between 190,000 and 650,000: 35
• Above 650,000: 40
  

Social Security Contributions for Employers and Employees

• All the workers who earn TRY 98 to 735 per day have to pay for the Social Security Contribution.
• Employers and employees both have to pay for Social Security Contributions. Currently, 15.5% to 20.5% is charged from the employer and 14% of tax is taken from the employee. 

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 (January 1 to December 31); however, a different fiscal year is allowed.

Setting up an entity and creating your legal presence can be a complicated process in a foreign country. Book a demo to know more.

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​Incorporation: How to Set Up a Subsidiary in Turkey

Three main types of companies can be created in Turkey, from among several options. These are given below. 

Turkish Limited Liability Company 

This type of company is ideal for owners of medium and small businesses and projects, due to the low cost required to establish a company in Turkey of this type, as the minimum for its establishment is TRY 10,000. The number of shareholders in this company can be at least one and a maximum of 50 people.

Joint Venture Companies

These companies are established to operate a commercial project bearing a specific commercial name. All shareholders have limited liability, and the capital in this type of company is not limited to a minimum amount of money.

Joint Stock Companies

It is a type of company in which the capital is divided into shares distributed among the shareholders, and their responsibility is limited according to the percentage of their shares from the capital of the company registered in it as a shareholder. The shareholders in this company must be five and the minimum capital is TRY 50,000, where a quarter of this amount is paid before the company is registered with the Turkish government. 

You can use Skuad’s Turkey EOR solutions along with our existing infrastructure and leverage all the lucrative business opportunities in Turkey immediately. To learn more, book a demo with Skuad experts!

Professional Employer Organization (PEO)

A professional employer organization (PEO) provides compliance, HR consultancy, filing taxes, health insurance, workforce management, and training. A PEO becomes a co-employer but companies will still be liable. 

Although an EOR service provides similar services to companies, there are certain differences between the two. 

• EOR companies become the legal employers of employees instead of the co-employers. An EOR firm has all the liabilities and responsibilities of the employees. A PEO retains your organization as the legal employer. 
• With EOR solutions, the employees are covered with the insurance plan of the EOR firm. With a PEO, you will have to opt for a plan by yourself. 
• With an EOR firm, you need not register your company in the country. You can have employees in the country without setting up an entity. The same is not true for a PEO. 

Hire Skuad’s EOR solution for Turkey to take care of all the compliance and HR-related tasks, from onboarding to training. Talk to Skuad experts to learn more.

Conclusion: What Gives Skuad’s Turkey Solutions an Edge?

Skuad has an extensive network in 150+ countries across the globe and provides a single interface to onboard and manage employees and contractors. It offers consistent prices irrespective of the location and manages the payment of your team through a single invoice. It also ensures that your IP, invention rights, and sensitive employee details are fully protected wherever you operate. For more details, contact Skuad experts and kickstart your expansion in Turkey!