Hire and pay employees in Turkey

Employer of Record (EOR) vs. entity

If you don’t already have a business entity established in Turkey, your first decision before you can hire and pay employees there is whether to set up your own entity or hire through an Employer of Record (EOR). 

• Legal entity in Turkey: Setting up your own legal entity from scratch can require registering a business with local authorities, opening a local bank account, and working with local experts to make sure you do everything compliantly according to Turkish tax and labor regulations.
• Employer of Record in Turkey: An EOR is a third-party service that works on an employer’s behalf, handling the legal requirements of hiring employees in Turkey, from payroll to benefits administration to regulatory compliance.

There are pros and cons to each, and choosing between an EOR and setting up your own local entity typically comes down to your organization’s size, resources, and future plans to scale.

Classifying Turkish workers: employees vs. contractors

Early in the hiring process, it’s also crucial to consider classification. Like many countries around the world, Turkey legally distinguishes between employees and independent contractors—and it’s up to employers to make sure they’re following the law and treating their workers fairly and correctly.

If a worker in Turkey raises a misclassification complaint, the courts look at their agreement with their employer as well as the work arrangement in practice. They assess a variety of factors to determine if misclassification occurred. Some of the most important factors employers should know to differentiate between contractors and employees include:

Misclassifying workers in Turkey can result in back wages and benefits, fines, and other penalties. Take our free Worker Classification Analyzer to help mitigate business risk by reviewing how your workers are classified in Turkey and across the globe.

Work permits for Turkish employees

Before onboarding any new employees in Turkey, you’ll want to make sure they have the proper authorization to work there. Anyone in Turkey who isn’t a national of the Turkish Republic of Northern Cyprus will need a work visa and a work permit to legally work in the country—the work visa to legally live in Turkey for employment purposes, and the work permit in order to legally work after arriving there.

Turkey offers a variety of work visas:

• Employment Purpose/Special Employment Purpose
• Assigned Lecturers/Academics
• Assigned Sportsperson
• Assigned Artists
• Assigned Free Zone Workers
• Assigned Journalists
• Montage and Repairman Purposes

The process in Turkey is a bit different from other countries because while the worker applies for the work visa, their employer will apply for the work permit on their behalf. Employers can do this by sending an application and supporting documents to the Turkish Ministry of Labour and Social Security (MLSS).

New hire onboarding checklist

After verifying that your new hire can legally work in Turkey, you can move on to onboarding.

Onboarding is your chance to build a solid foundation with your new employee, which is why a successful onboarding experience starts before their first day and extends well beyond it. To make sure you’re considering more than just day one logistics, here’s what to do at each stage of onboarding to help ensure a fulfilling work relationship from the beginning:

Before their first day

• Complete a reference check 
• Send an offer letter (more on that in the next section)
• Obtain their wet signed employment contract
• Get a scanned copy of their Turkish ID (needed to register them to SSI)
• Complete their registration to Turkish SSI by one day before employment begins
• Complete their medical check
• Prepare for tax withholdings 
• Enroll them in benefits (if applicable)
• Add them to payroll
• Order and configure their devices
• Schedule their orientation

On day one

• Make sure their workspace is ready (if the position isn’t remote)
• Send a welcome email
• Give them an agenda 
• Schedule a meeting with their onboarding mentor 
• Give them an office tour

During their first 90 days

• Schedule training
• Assign work and help them set goals 
• Schedule regular check-ins
• Seek their feedback on how to improve the experience

What to include in an offer letter in Turkey

Employment contracts in Turkey are regulated by Turkish Labor Law (Law No. 4857) and other regulations. There are, broadly, three common types of employment contracts: indefinite-term contracts, fixed-term contracts, and part-time contracts. Indefinite-term contracts are the most common for full-time employees hired in Turkey. Contracts must be drafted in Turkish, but can be bilingual. They also require a wet signature—an offline process Rippling’s onboarding flow supports.

Below is a basic checklist of what to include in the employment agreement, but note that this isn’t a comprehensive list:

• The position and a job description
• Start date, working days, and hours of work
• Duration of employment, if it’s a fixed-term contract
• Probationary period length and details, if applicable
• Compensation and benefits, including payment frequency and other relevant details, like whether they’ll be paid in Turkish lira (TRY)
• Any collective bargaining agreements that will apply
• Your termination policy and details
• Confidentiality obligations and post-termination restrictions
• Your contact information

NDAs and confidentiality agreements in Turkey

Confidentiality and non-disclosure obligations are often included in employment agreements or onboarding materials. They can also be part of a standalone agreement called a non-disclosure agreement (NDA), a confidentiality agreement (CA), or a proprietary information agreement (PIA). 

In Turkey, there is no law that explicitly regulates or addresses confidentiality agreements, and the country’s Court of Appeals hasn’t established precedent on the matter. However, as long as an NDA falls within Turkey’s contract laws and doesn’t violate data privacy regulations, legal experts believe it would be enforceable if challenged. Further, Turkey’s Penal Code provides that people who disclose certain confidential business information (like baking secrets or information related to customers) could be subject to imprisonment and punitive fines.

Running background checks on Turkish employees

It’s tempting to onboard a new employee as quickly as possible. However, background checks are an important step in the process to mitigate potential risks to your company and verify that your new employee has the right background and credentials for the job.

In Turkey, background checks are legal as long as they comply with:

• The Law on Protection of Personal Data
• The Criminal Code
• The Turkish Labor Law

Employers must get a candidate’s consent before running any type of background check, and all background checks must be relevant to the job. They must inform the candidate how they will handle the data and who will have access to it. Employers can refuse to hire candidates who don’t consent to a background check, as long as the background check was relevant to the position.

Turkey’s Data Position Authority can impose fines or even imprisonment on employers who don’t comply with data protection regulations during background checks.

Paying employees in Turkey

One of the most complicated parts of hiring internationally is figuring out how to pay your global team. As an international employer, you’ll be responsible for knowing and complying with local tax and payroll regulations—from the currency you use to pay Turkish workers to the taxes and employment costs you deduct from each payroll run.

Often, the most straightforward solution is using global payroll software like Rippling, which allows you to pay all of your employees and contractors around the world without waiting on transfers or currency conversions. Plus, Rippling instantly calculates and files payroll taxes for your global employees worldwide, simplifying the process of running payroll in Turkey and anywhere else you employ your workforce.

In Turkey, payroll taxes are relatively straightforward. Both employers and employees pay into the Social Security Institution (SGK), which provides benefits like national healthcare, unemployment insurance, and retirement funds. Employers withhold Social Security contributions from each employee’s salary and remit payments on their behalf. Additionally, Turkey has a graduated income tax system, where the amount an employee pays depends on their income.

Mandatory employee benefits in Turkey

In Turkey, many entitlements for employees, from annual leave to health insurance, are statutory, or required by law. Other benefits are supplemental, and can be offered by employers as extra incentives to help attract top talent.

Mandatory benefits in Turkey include:

• Social Security contributions: Employers are required to pay into the country’s Social Security system on behalf of their employees. Turkish Social Security funds national healthcare, unemployment insurance, retirement benefits, and more.
• Minimum wage: Turkey maintains a minimum wage that’s reviewed twice yearly in January and July with the aim of setting a basic standard of living for all workers.
• Paid time off: Employees are entitled to annual leave based on their length of service—14 days annually after their first year of employment, 20 days annually after five years of service, and 26 days after 15 years of service.
• Sick leave: Employees can take sick leave if they have a medical report. Employees must pay them for the first two days, and Social Security pays for any subsequent days.
• Parental leave: Mothers are entitled to 16 weeks of paid maternity leave—eight weeks before and eight weeks after childbirth—and can request additional unpaid leave. Fathers are entitled to five days of paid paternity leave. Turkish maternity leave is paid by SSI.
• Marriage leave: Employees can take three days of paid leave for marriage.
• Bereavement leave: Employees can take three days of paid leave to mourn the death of a close family member.
• Public Holidays: In addition to annual leave, workers in Turkey recognize these public holidays each calendar year:
• New Year’s Day
• National Sovereignty and Children’s Day
• Labor Day and Solidarity Day
• Commemoration of Ataturk, Youth and Sports Day
• Ramadan
• Victory Day
• Sacrifice Feast
• Republic Day

Managing remote employees’ computers and apps

If it’s your first time hiring employees in Turkey, figuring out the logistics of managing all of their devices remotely can be daunting. From delivering equipment suitable for remote work (sometimes from the other side of the world), to protecting and updating it from another location—not to mention providing IT support in Turkey and creating repeatable processes for device and app management across your global teams—there’s a lot to keep track of.
Rippling can help you instantly set up and secure employees’ accounts from day one. Read about setting up and managing remote employee devices overseas in our guide.

Protecting company IP in Turkey

As your new employee gets up to speed, they’ll need access to potentially sensitive information and confidential company accounts. So how do you protect your intellectual property (IP) rights in Turkey? You have several options, depending on what type of IP it is:

• Copyright registration: Copyrights cover works such as literature, music, artistic creations, and computer software. In Turkey, you don’t need to register a copyright—it exists automatically once someone creates this type of work. However, for added protection, you can obtain a registration or time stamp to prove you are the original creator of the work by:
• Submitting details of the work to the Ministry of Culture
• Having the work certified and sealed by a notary public
• Acquiring a time stamp from a Turkish company offering an electronic stamping or sealing service
• Patent applications: Patents give inventors exclusive rights to their inventions for a limited time. In Turkey, you can patent an invention for 20 years as long as it’s new or inventive. To do so, file a patent application with TURKPATENT or with the European Patent Office by designating Turkey.
• Trademark registration: Trademarks are somewhat protected even without registration in Turkey under the unfair competition provisions of the Commercial Code. However, registering your trademark can make it easier to enforce your rights and ownership. You can register your trademark for 10 years by filing an application form with TURKPATENT.

Complying with Turkish labor laws

The Turkish Labor Law (Law No. 4857) is the foundation of employment relations in the country. It outlines rules for working conditions, social security, and other regulations to keep working relationships fair and workers safe.

Some important aspects to know about Turkey’s labor laws:

• Turkey’s standard workweek is 45 hours, and employees cannot work more than 11 hours per day. Overtime is regulated by law, and employees are entitled to 150% of their regular pay rate for any overtime worked.
• It’s illegal in Turkey to discriminate against workers based on factors like gender, religion, race, or disability. Employers are required by law to provide a workplace free from harassment.
• Turkish employees have the right to form and join unions, and collective bargaining is recognized and protected under the Labor Law.

Terminating employees in Turkey

Terminating an employee in Turkey can be complex—terminations are regulated by the Labor Law and other rules that employers are required to follow.

Employees can be terminated for cause for the following reasons:

• Immoral, dishonorable, or malicious conduct
• Medical reasons that cause incapacity for the job
• Misconduct
• Disciplinary dismissal

If the employee is past their probation period (which can last a maximum of two months, according to Turkey’s employment laws), notice is required.

If they’ve worked for the employer for at least a year and are terminated without cause, severance pay is required. Severance is calculated as one month’s pay for each year of service; there is a cap on severance that’s determined by the government and changes twice each year according to inflation.

Frequently asked questions

How do I hire someone in Turkey?

Hiring a worker in Turkey can be complex, and involves several steps:

1. Decide on a legal entity or Employer of Record (EOR): Determine if you’ll set up your own entity in Turkey or use an EOR service.
2. Classify your worker correctly: Distinguish between employees and contractors according to Turkish labor laws.
3. Create an employment agreement: Draft a compliant employment contract in Turkish.
4. Onboard your new hire: Complete necessary registrations, provide training, and make sure all legal and organizational requirements are met.

How much vacation do you get in Turkey?

In Turkey, the amount of vacation employees are entitled to depends on their length of service:

• 1-5 years: 14 days of annual leave
• 5-15 years: 20 days of annual leave
• 15+ years: 26 days of annual leave

Additionally, employees are entitled to public holidays.

Does Turkey have a minimum wage?

Yes. Turkey’s minimum wage is designed to maintain a minimum standard of living for all workers. It fluctuates regularly because it’s reviewed twice yearly and adjusted based on inflation and the cost of living. The minimum wage in Turkey now is 20,002 gross TRY. Employers need to stay up-to-date on the current minimum and make sure they pay their employees accordingly.

What’s the average salary in Turkey?

The average salary in Turkey varies widely based on the industry, position, and experience of the employee.

How much is income tax in Turkey?

Turkey’s income tax is calculated on a progressive scale based on the employee's earnings.

Disclaimer: Rippling and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any related activities or transactions.