TurkeyDiscover an employer’s guide to employment laws, regulations, and Employer of Record (EOR) in Turkey.
Looking to hire in Turkey? An EOR can help.
Expanding your business to Turkey? An Employer of Record (EOR) service can help if you don’t want to set up an entity.
An EOR becomes your team’s official employer in Turkey. They handle hiring, payroll, benefits, contracts, and more. EORs are well versed in Turkish laws and practices so you can stop worrying about compliance and focus on what matters.
How to hire in Turkey
Step 1: Choose between setting up a local entity and using an EOR
When hiring in Turkey, you have the option of either establishing a local business entity or utilizing an Employer of Record (EOR) service.
Setting up a local entity provides you with comprehensive control over your operations, but it requires a significant investment in terms of time, financial resources, and effort. This process involves registering your business with Turkish authorities, appointing directors, and navigating complex tax regulations.
Setup can take several weeks or even months to complete, potentially affecting your hiring timeline. Additionally, establishing a local entity means you will be responsible for complying with all Turkish employment laws and regulations directly.
On the other hand, opting for an EOR service can simplify the complexities of Turkish labor laws. This solution allows you to onboard employees swiftly and automate essential HR functions.
If you plan to hire a large number of employees and build a substantial presence in Turkey, creating a local entity might be advantageous. However, if you are looking for a quicker and more streamlined hiring process, an EOR provides a more efficient alternative.
Finding the right EOR
Choosing the right Employer of Record (EOR) for your operations in Turkey is crucial. An ill-chosen EOR can lead to compliance problems, unforeseen costs, and a less-than-optimal experience for your new hires.
Here are key factors to consider:
- Legal compliance. Ensure the EOR has a solid grasp of Turkish labor laws, employee rights, tax obligations, and local benefits. Assess their history and inquire about their experience with industry-specific situations.
- Customer service. Determine the levels of ongoing support the EOR offers. Multiplier provides 24/5 support and dedicated account managers.
- Transparent pricing. Watch out for EOR services that present low initial costs but have hidden fees or complex pricing schemes. Make sure you understand all potential costs from the outset before making a choice.
- Total cost of ownership. Opting for the cheapest option isn’t always the wisest approach. Lower-cost solutions can sometimes end up being more expensive if they are not effective. When selecting an EOR, ensure that you are investing in a high-quality service that fits your budget while still offering essential features.
Step 3: Employing and onboarding in Turkey
Send over the contract
After selecting the ideal candidate and the right EOR, the next step is to issue a locally compliant employment contract. Services such as Multiplier can prepare these contracts swiftly in accordance with Turkish law . You can customize the contract to outline job responsibilities, working hours, compensation, and termination terms.
Once the contract is ready, the EOR will securely send it to the candidate and ensure all required signatures are collected.
Enhance compensation with competitive benefits
To offer a compelling benefits package, work with a capable EOR. Rather than managing local vendors directly, an EOR can provide various locally administered benefits options. They can also ensure that employees receive the necessary IT equipment to begin their roles.
Get all documentation in order
Collecting the new hire’s tax and banking details is crucial. If you’re using an EOR like Multiplier, this information will be gathered automatically to set up payroll. We will handle all necessary documentation, simplifying the process and reducing paperwork hassles.
Onboarding employees in Turkey might appear daunting initially, but with the support of an EOR, the process can be streamlined and hassle-free.
Step 4: Run payroll for employees based in Turkey
Handling payroll for employees in Turkey involves adhering to local tax regulations and mandatory contributions. Turkey’s tax system is progressive, with rates ranging from 15% to 40% depending on income levels.
Employers are also responsible for several compulsory contributions, such as the Social Security Institution (SGK) premiums and unemployment insurance.
The SGK provides Turkey’s primary social security benefits, including retirement pensions, healthcare coverage, and disability benefits. Employers must contribute a set percentage of each employee’s salary to the SGK to ensure they receive necessary social security benefits.
Unemployment insurance in Turkey, funded by employer, employee, and government contributions, offers financial support to employees who lose their jobs involuntarily. This is based on their previous average daily gross earnings, currently standing at 40% of these earnings.
Leveraging an EOR like Multiplier can streamline payroll management. They ensure that salaries are paid accurately and on time while handling all local taxes and contributions. With Multiplier’s global payroll solution, you can manage payroll for all your international employees from one platform, avoiding the complexities of dealing with multiple local providers.
Employment laws and regulations in Turkey
Turkey’s employment laws are designed to protect employee rights and promote a fair working environment. Key elements include:
- Employment contracts. Employers in Turkey can use both fixed-term and indefinite-term contracts. While written contracts are not legally required, they are strongly advised to prevent legal conflicts. These contracts should clearly outline job responsibilities, salary, working hours, and termination conditions.
- Working hours and overtime pay. The standard workweek in Turkey is 45 hours, with overtime pay required for any hours worked beyond this limit. Employees are entitled to at least 30 minutes of rest for every 4 hours worked consecutively.
- Minimum wage. Turkey’s minimum wage is set annually and is applicable nationwide. Currently, it is approximately TRY 11,500 per month. Rates are reviewed periodically to reflect changes in the cost of living and economic conditions.
- Termination of employment. Termination procedures must follow legal requirements, including providing adequate notice and, in some cases, severance pay based on the duration of employment. Employees have the right to challenge wrongful dismissals and seek compensation.
- Social security contributions. Employers are required to contribute to the SGK, which provides social security benefits, including retirement pensions and health coverage. Both employers and employees contribute a percentage of monthly salaries to the SGK.
Employ top talent in Turkey through an EOR
Onboard, pay, and manage all your international employees
Employee benefits and compensation
In Turkey, labor laws stipulate several standard employee benefits and requirements for working conditions. These include:
- Annual leave. Employees are entitled to a minimum of 14 days of paid annual leave after completing one year of service. This entitlement increases with longer tenure, providing additional days based on years of employment.
- Sick leave. Employees can receive up to 15 days of paid sick leave per year. For absences exceeding this duration, employers must provide sick leave with a medical certificate, and compensation may be provided through the Social Security Institution (SGK).
- Parental leave. Turkey offers 16 weeks of paid maternity leave, covered by the Social Security Institution, with additional unpaid leave options available. Fathers are entitled to five days of paid paternity leave, and there are provisions for unpaid parental leave as well.
- Retirement benefits and workplace safety. Employers are required to contribute to the SGK, which covers retirement pensions and provides benefits for work-related injuries and illnesses.
Many employers enhance these statutory benefits with additional perks to attract and retain skilled talent. For customized and competitive benefits solutions, consider using services like Multiplier’s Global Benefits Administration, which ensures compliance and delivers a comprehensive benefits package for your international workforce.
Termination and offboarding procedures
When terminating employment in Turkey, employers must adhere to regulations regarding notice periods and severance pay. The standard notice period is generally 2 weeks (14 days) to 56 days, but this can vary depending on the terms outlined in the employment contract.
Turkish law requires severance pay, typically 30 days’ salary for each year of service, with the exact amount determined by the employee’s contract or statutory provisions. As of July 1, 2024, the upper limit for severance pay is set at approximately 41,828.42 TL.
Special procedures apply in redundancy cases, such as during company restructuring or economic downturns. Employers may choose to provide notice pay in lieu of the notice period, but this must be explicitly stated in the employment contract.
Navigating these procedures can be complex and time-consuming, especially for international employers unfamiliar with Turkey’s labor laws. An EOR, such as Multiplier, can greatly ease this process. By handling the offboarding procedures, an EOR ensures compliance with local regulations and facilitates a smooth transition for both the employer and the departing employee.
Visa and work permit assistance
Hiring foreign employees in Turkey requires obtaining the appropriate visas and work permits. The specific visa type needed will depend on factors such as the job role, duration of employment, and the employee’s nationality.
Here are the main visa categories for working professionals:
- Turquoise Card: For highly qualified individuals, including those with exceptional skills in areas like engineering, technology, and research.
- Work Permit for Foreign Investors: For investors or executives in companies operating in Turkey.
- Intra-Company Transfer Work Permit: For employees transferred from a foreign branch of a multinational corporation to a Turkish branch.
- Student Work Permit: Allows students who are studying in Turkey to work part-time while completing their education.
- Professional Work Permit: For foreign professionals in fields such as law, medicine, and accounting. It requires recognized international credentials and is usually issued for one year with the possibility of renewal.
- Seasonal Work Permit: For low-skilled workers in industries such as agriculture, manufacturing, and construction.
Given the complexities involved in visa applications and renewals, it is advisable to seek expert assistance. Multiplier offers comprehensive work permit and visa support as part of its Employer of Record (EOR) services.
For more details on how we address global immigration challenges, please visit our Global Immigration page.
Get started with Multiplier’s EOR services
Multiplier’s Employer of Record (EOR) services provide a robust solution for expanding your team in Turkey. Partnering with Multiplier allows you to hire employees without establishing a local presence, effectively streamline HR functions, and enhance the overall employee experience.
Our EOR services manage every facet of employment seamlessly. From drafting contracts that adhere to Turkish legal requirements to handling payroll and taxes, we ensure everything is taken care of. Additionally, we offer a suite of customizable benefits that meet local standards, removing the complexities and administrative burdens from your shoulders.
Discover how Multiplier can simplify your HR operations and ensure compliance in Turkey by scheduling a demo with us today.
