Last updated:
June 16, 2026
Introduction
Hiring your first employee in Turkey looks simple until the paperwork starts. A written contract is expected from day one, social security registration with the SGK carries a tight deadline, and income tax is calculated cumulatively, so an employee's take-home pay shifts month to month. Get any of it wrong and the penalties land on the employer, not the employee.
An employer of record in Turkey removes that risk. An EOR is a locally registered company that legally employs staff on your behalf, managing payroll, SGK contributions, and compliance with Labour Law No. 4857, while you direct the day-to-day work. It lets you hire without setting up a Turkish entity.
This guide explains what you need to know about minimum wage and working hours, leave entitlements, severance (Kıdem Tazminatı), the progressive tax brackets set by the Turkish Revenue Administration, visas and work permits, and how incorporation compares to using an EOR.
Turkey at a glance
Area: 785,350 square kilometers
Population: 87 million people
Currency: Turkish lira (TRY)
Capital City: Ankara
Official language: Turkish
GDP: 1.32 Trillion
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Talk to an expertEmployment in Turkey
The Turkish Republic is one of the countries 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 businesspeople 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
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Entitlement
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Explanation
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Minimum wage
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The 2026 minimum wage is TRY 33,030 gross per month (TRY 28,075.50 net), effective 1 January 2026. It is set once a year by the Minimum Wage Determination Commission and is exempt from income and stamp tax up to the minimum wage amount.
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Working hours
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The standard working week is a maximum of 45 hours, which may be distributed unevenly across the week as long as daily working time does not exceed 11 hours.
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Minimum working age
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The minimum working age is 15. Employment of children who have not completed age 15 is prohibited, though children who have completed age 14 and their primary education may do light work that does not affect their schooling, health, or development.
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Overtime
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Overtime is any work beyond 45 hours a week and is paid at one and a half times the normal hourly rate. Total overtime cannot exceed 270 hours per year, and the employee's consent is required.
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Annual leave
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Paid annual leave starts after one year of service (including the trial period) and cannot be less than:
- 14 days for 1 to 5 years of service (5 included)
- 20 days for more than 5 and less than 15 years
- 26 days for 15 years and more (15 included).
Employees under 18 or over 50 receive a minimum of 20 days regardless of length of service.
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Sick/medical leave
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Employees who document an illness or injury with a medical report are entitled to time off for the rest period recommended in the report. Statutory sick pay is provided by SGK as a temporary incapacity allowance, generally from the third day of the report. If the illness exceeds the notice period in the report by more than six weeks, the employer may terminate the contract with immediate effect while paying severance, on the grounds that recovery is not possible.
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Maternity/paternity leave
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Maternity rights sit under Article 74 of the Employment Law. Pregnant employees take 16 weeks of fully paid leave: 8 weeks before birth and 8 weeks after (rising to 18 weeks for a multiple pregnancy). After this, a mother may request up to 6 months of unpaid leave, and nursing mothers are entitled to 1.5 hours of paid nursing leave per day until the child turns one. Fathers receive 5 days of paid paternity leave when their spouse gives birth.
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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 from 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 up 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.
Whether you bring someone on as a full-time employee or a contractor in Turkey changes your SGK obligations, your severance exposure, and your misclassification risk under Labor Law No. 4857. Getting that call right matters before the first contract is signed.
Skuad supports both hiring models from a single platform:
EOR for full-time employees
- Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
- Supports employment contract generation aligned with local labor laws across supported markets
- Facilitates statutory contribution workflows covering applicable social insurance and pension obligations
- Supports payroll processing in 70+ currencies with tax withholding and statutory deductions
- Assists with termination and offboarding, including notice periods and severance calculations as required locally
Contractor management
- Helps onboard contractors with locally compliant agreements that reduce misclassification exposure
- Supports invoice generation, approval workflows, and payment processing across supported markets
- Helps flag classification risk early with built-in worker classification checks
- Facilitates multi-currency payouts across 70+ currencies with no manual reconciliation
- Helps manage contractor records, contracts, and payment history from one dashboard alongside full-time employees
Full-time or contractor. Skuad supports both. See pricing
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 overtime, and the salary for each hour of overtime will be equivalent to one and a half times the normal hourly rate.
Probation and termination
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Law/Regulation
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Explanation
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Probation
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An employee's probationary period can be up to two months. It 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 or compensation.
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Termination
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If either the employer or the employee wishes to terminate an indefinite-term employment contract, that party must give advance notice to the other before the termination takes effect. The required notice period depends on the employee's length of service.
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Notice period
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Statutory minimum notice periods by length of service: two weeks for up to six months; four weeks for six to eighteen months; six weeks for eighteen to thirty-six months; and eight weeks for more than thirty-six months. These are minimums and may be increased by contract.
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Public holidays
Turkish public holidays include a mix of national observances, religious celebrations, and commemorative days, some of which may involve full-day or half-day closures.
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Public Holiday
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Date*
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New Year's Day
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January 1
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Ramazan Bayramı (Eid al-Fitr) Eve
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Varies annually
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Ramazan Bayramı (Eid al-Fitr)
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Varies annually
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National Sovereignty and Children's Day
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April 23
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Labor and Solidarity Day
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May 1
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Atatürk Memorial, Youth and Sports Day
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May 19
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Kurban Bayramı (Eid al-Adha) Eve
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Varies annually
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Kurban Bayramı (Eid al-Adha)
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Varies annually
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Day of Democracy and Freedoms
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July 15
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Victory Day
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August 30
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Republic Day Eve (Half Day)
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October 28
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Republic Day
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October 29
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Types of visas in Turkey
The Turkish visa system is designed around the purpose of travel, with separate visa types for tourism, business, education, employment, official assignments, and specialized activities such as medical treatment or family reunification.
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Visa Type
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Purpose
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Tourist/Business Visa
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Tourism, business meetings, conferences, exhibitions, cultural events, transit, and official visits
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Official Visa
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Government assignments, diplomatic duties, and courier services
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Student/Education Visa
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Academic studies, language courses, internships, exchange programs, and educational training
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Working Visa
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Employment, academic appointments, journalism, sports, artistic work, and technical assignments
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Other Visas
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Medical treatment, family reunification, documentary production, archaeological research, transportation, seafaring, and related purposes
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Work permit
Before hiring foreign talent in Türkiye, employers should understand the different work permit categories available under Turkish immigration and labor regulations. The appropriate permit type depends on factors such as the nature of employment, duration of stay, professional qualifications, and long-term plans in the country.
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Work Permit Type
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Description
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Definite (Fixed-Term) Work Permit
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Issued for a specific employer, workplace, and position for up to one year initially, with the possibility of extensions.
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Permanent Work Permit
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Available to foreign nationals who have held a legal work permit for at least eight years or possess a long-term residence permit in Türkiye.
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Independent Work Permit
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Allows eligible foreign professionals, entrepreneurs, and investors to work on their own behalf without being tied to a specific employer.
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Turquoise Card
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A special permit for highly qualified foreign professionals, investors, researchers, scientists, and other individuals who make significant contributions to Türkiye's economy, employment, or innovation ecosystem.
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Hiring a foreign national in Turkey means securing a work permit through the Ministry of Labour and Social Security, coordinating residence documentation, and tracking renewals, a sequence that adds lead time to any international hire.
Skuad supports the work permit process on your behalf, including:
- Supporting work permit applications for foreign employees joining your team
- Helping coordinate visa documentation with the relevant local immigration authorities
- Assisting with residence and work permit conversions as required by local immigration law
- Helping track documentation requirements and deadlines across the full permit lifecycle
- Helping keep your team aligned with requirements as permit renewals and regulations change
Payroll and taxes in Turkey
Payroll
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
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Tax / Regulation
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Explanation
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Personal income tax
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Income tax is progressive across five bands:
- 15% up to TRY 190,000
- 20% on TRY 190,000–400,000
- 27% on TRY 400,000–1,500,000
- 35% on TRY 1,500,000–5,300,000
- 40% above TRY 5,300,000 (2026 employment-income brackets).
Tax is applied cumulatively on year-to-date earnings, so the effective monthly rate rises through the year and resets in January.
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Social security contributions
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SGK premiums are calculated on a monthly earnings base between a floor of TRY 33,030 and a ceiling of TRY 297,270 (as of 1 January 2026).
The employee pays 14% in social security premiums plus 1% unemployment (15% total).
The general employer rate is around 20.75%, rising toward 21.75% with the 2026 long-term-branch increase and reduced to roughly 15.5%–16.75% where the Treasury-supported discount applies, plus 2% employer unemployment.
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Corporate tax
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The standard corporate income tax rate is 25% (30% for banks and financial institutions). A 10% domestic minimum corporate tax also applies from 2026.
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Value-added tax (VAT)
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The standard VAT (KDV) rate is 20%, with reduced rates of 10% and 1% for certain goods and services.
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Tax returns
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Individual annual income tax returns are filed by the end of March. Payment is made in two equal installments, in March and July.
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Inheritance tax
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Inheritance tax is progressive, ranging from 1% to 10% (10% is the top rate, not a flat rate).
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Gift tax
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Tax on gratuitous transfers (gifts) is progressive, ranging from 10% to 30% (30% is the top rate).
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Financial year
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The tax year is the calendar year (January 1 to December 31). A special accounting period may be permitted where the calendar year is unsuitable.
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Incorporation
Three main types of companies can be created in Turkey, 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 of 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.
Incorporating in Turkey, whether a Limited Şirket or a Joint Stock Company, means minimum capital, notarization, Trade Registry filings, and tax and SGK registration before you can legally employ anyone.
If your goal is to hire rather than establish a permanent legal presence, Skuad acts as the legal employer so you can place staff in Turkey without incorporating at all.
Book a demo to see how Skuad helps you hire in Turkey without incorporating
Professional Employer Organization
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.
Employer of Record in Turkey: Start hiring faster
Hiring in Turkey means staying on top of SGK contributions, cumulative progressive income tax, severance accrual, written contracts, and KVKK data rules, all at once.
Skuad supports the operational complexity of hiring in Turkey, employment contracts, social security filings, payroll in 70+ currencies, statutory benefits, and work permits, so your team can focus on the work, not the paperwork.
Companies across SaaS, technology, e-commerce, and logistics use Skuad to support their entry into the Turkish market, stay aligned with regulations as they change, and scale their team without building local HR infrastructure from scratch.
Book a demo to see how Skuad gets your first Turkey hire onboarded in weeks, not months
1. What is an employer of record in Turkey?
An employer of record in Turkey acts as a legal employer for your Turkey remote team, handling local employment laws, payroll, and other obligations, so you hire without a local entity.
2. How much does an employer of record in Turkey cost?
Most EOR providers in Turkey typically charge $199 to $900 per employee monthly, plus the gross salary and employer tax and other contributions of roughly 20 to 24 percent.
3. Can a foreign company hire in Turkey without a local entity?
Most EOR providers act as legal employers and hold a Turkish entity and SGK registration, signing compliant contracts and running payroll in lira on your behalf. So, you can hire in Turkey via EOR services without a local entity.
4. What are the compliance risks of hiring in Turkey without an EOR?
Main risks are contractor misclassification, missed SGK contributions, and mishandled severance (Kıdem Tazminatı), plus penalties under KVKK data rules or the 270-hour overtime cap.
5. EOR or setting up an entity in Turkey: which makes more sense?
An EOR suits small teams and market testing with no setup cost. A local entity (Limited Şirket) becomes cheaper at higher headcount and long-term presence.
