As Turkey emerges as a crucial gateway between Europe and Asia, navigating its complex labor laws and regulatory frameworks can be a daunting task for companies looking to expand. Employer of Record (EOR) services offer a seamless solution, enabling businesses to hire talent in Turkey without the hassle of establishing a local entity. The concept of Employer of Record (EOR) services plays a crucial role for businesses seeking to expand into global markets. In Turkey, EOR services are designed to facilitate business operations without the need for establishing a local entity.
Turkish lira (₺) (TRY)
Ankara
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Important Facts About the Country of Turkey
Introduction to turkey :
Turkey is a transcontinental country strategically positioned between Europe and Asia, serving as a bridge between the two continents. Known for its rich history, diverse culture, and economic significance, Turkey has been a focal point for trade, tourism, and diplomacy. Its official language is Turkish, and its currency is the Turkish Lira (TRY).
What to Know about turkey's Geography:
Turkey spans approximately 783,000 square kilometers, bordered by eight countries, including Greece, Bulgaria, Georgia, Armenia, and Iran. It has extensive coastlines along the Aegean, Mediterranean, and Black Seas. The capital city is Ankara, while Istanbul is its largest city and economic hub. Notable geographical features include the Taurus Mountains, Mount Ararat, and the vast Anatolian Plateau.
Climate in turkey :
Turkey’s climate varies significantly due to its size and geography:
• Mediterranean Climate: Along the southern and western coasts, with hot, dry summers and mild, wet winters.
• Continental Climate: In central and eastern regions, characterized by cold winters and hot summers.
• Black Sea Climate: On the northern coast, with high rainfall and moderate temperatures year-round.
The Culture of turkey :
Turkish culture is a unique blend of Eastern and Western influences, shaped by its Ottoman heritage and modern developments. Key cultural highlights include:
• Cuisine: Famous for dishes like kebabs, baklava, and Turkish tea.
• Religion: Predominantly Muslim, with a secular constitution.
• Traditions: Hospitality plays a central role, and festivals such as Ramadan and Republic Day are widely celebrated.
• Arts and Music: Traditional crafts like carpet weaving and modern art forms coexist, alongside classical Turkish music and contemporary pop.
Turkish Human Resources at a Glance
Employment Law Protections in Turkey
Turkey’s labor laws are primarily governed by the Turkish Labor Act No. 4857, which outlines employee rights, employer obligations, and work conditions. Key protections include:
• Anti-Discrimination Laws: Employers are prohibited from discriminating based on gender, religion, ethnicity, or political views.
• Termination Protection: Employees dismissed without valid reason or due process may claim compensation or reinstatement.
• Maternity and Paternity Rights: Female employees are entitled to 16 weeks of maternity leave, while fathers receive five days of paternity leave.
Employment Contracts in Turkey
Employment contracts in Turkey can be verbal or written, but written contracts are mandatory for specific cases, such as fixed-term or part-time work. Key elements include:
Contract Types:
• Indefinite-Term Contracts: The most common type, used for long-term employment.
• Fixed-Term Contracts: Used for temporary or project-based roles.
• Part-Time Contracts: For roles with fewer hours than the standard 45-hour workweek.
• Mandatory Provisions: Job title and description, Working hours, wages, and payment terms.
• Duration (if fixed-term) and notice periods for termination.
• Probation Periods: Typically up to two months, extendable to four months in collective agreements.
• Social Security Registration: All employees must be registered with Turkey’s Social Security Institution (SGK) by their employer.
Tax and Social Security Information for Employers in Turkey
Personal Income Tax in Turkey
Turkey employs a progressive income tax system. For 2025, the tax brackets are:
|
Annual Taxable Income (TRY) |
Tax Rate (%) |
|
Up to 158,000 |
15% |
|
158,000.01 – 330,000 |
20% |
|
330,000.01 – 1,200,000 |
27% |
|
1,200,000.01 – 4,300,000 |
35% |
|
Over 4,300,000 |
40% |
Social Security Contributions
Both employers and employees are required to contribute to social security. For 2025, the rates are:
• Employer Contribution: between 15.5% or 20.5% of gross salary.
• Employee Contribution: 14% of gross salary.
These contributions cover various insurance branches, including disability, old age, death, health, and unemployment.
Important Information for Turkey Employees
Turkey Working Hours
The workweek is capped at 45 hours, spread evenly across workdays. If an employee works beyond 45 hours, they are entitled to overtime pay, calculated at 50% of their regular rate. Alternatively, employees may receive 1.5 hours of compensatory time for each overtime hour worked. Overtime terms may be enhanced through collective bargaining or employment contracts, but total overtime cannot exceed 270 hours annually.
Rules Regarding Visas and Foreign Workers in Turkey
General Information
Turkey is a growing hub for foreign talent due to its strategic location, bridging Europe and Asia, and its dynamic labor market. The government encourages skilled foreign workers to fill gaps in key sectors such as technology, healthcare, and engineering.
• Foreign nationals are required to obtain both a visa and a work permit to reside and work legally in Turkey.
• Employers play a significant role in facilitating the process by sponsoring applications for work permits and ensuring compliance with Turkish labor laws.
• The integration of foreign workers is supported through various legal frameworks, ensuring equal treatment and access to employment rights.
• Workers must adhere to local regulations regarding residency permits, which are mandatory for long-term stays.
Visas :
Most foreign nationals require a visa to enter Turkey, except for citizens of visa-exempt countries.
Work Permits :
Employers must sponsor foreign employees by applying for a work permit.
A residence permit is also required for long-term stays
Turkey Statutory Benefits
Employees in Turkey are entitled to several mandatory benefits:
Social Security Contributions: Employers must contribute to social security for health insurance, retirement, and unemployment.
Annual Leave: Employees with one year of service are entitled to 14 to 26 days of paid leave, depending on tenure.
Public Holidays: Turkey recognizes 15 public holidays annually.
Maternity Leave: 16 weeks (8 weeks pre-birth, 8 weeks post-birth).
Paternity Leave: 5 days for fathers.
EOR Services and Benefits for Employers :
Onboarding Employees: Assistance with employment contracts, compliant with Turkish labor laws.
Payroll Management: Handling salaries, taxes, and deductions.
Tax Compliance: Ensuring proper corporate and individual tax filings.
Termination Support: Guidance on compliance with termination laws to avoid legal disputes.
Public Holidays Recognized by Turkey
Turkey has 9 paid year holidays, which are:
New Year’s Day – January 1st
National Sovereignty and Children’s Day – April 23rd
Labor Day and Solidarity Day – May 1st
Youth and Sports Day – May 19th
Democracy and National Unit Day – July 15th
Victory Day – August 30th
Republic Day – October 29th
Ramadan Bayramı Holiday – 3.5 days (Eid Fitr)
Kurban Bayramı Holiday – 4.5 days (Eid Al Adha)
Hiring foreign workers in Turkey requires coordination between employers, the Ministry of Labor, and the foreign worker’s embassy, with processing times up to three months. Regulated professions like architecture and engineering may require a year for approval. Turkish Labor Law No. 4857 governs employment, covering contracts, working hours, leave, and termination. Employers should also consider Collective Bargaining Agreements and Trade Unions as they play a significant role in the labor process and can affect hiring timelines.
For more information about EOR Services in Turkey, contact Staff Arabia's experts and start your business growth.