Employer of Record in Turkey

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in Turkey. This means you can build a team in Turkey without setting up a local entity. The EOR handles all the legal and HR tasks, like payroll, taxes, and benefits. Your company manages your employees' day-to-day work, but the EOR is the legal employer. For companies looking to hire in Turkey, Rivermate offers EOR services to simplify the process.

How an Employer of Record (EOR) Works in Turkey

Using an EOR in Turkey simplifies hiring and ensures you follow local laws. The process is straightforward.

1. Compliance Check: The EOR first makes sure that all hiring practices meet Turkish labor laws. This includes understanding tax rules and required employee benefits.
2. Employment Contract: The EOR creates a legally compliant employment contract. This contract will include job responsibilities, salary, and work hours.
3. Benefits Administration: The EOR helps you create a competitive benefits package that meets local standards.
4. Onboarding: The EOR collects all necessary documents from your new employee. This includes tax information and bank details.
5. Payroll and Taxes: Once your employee is onboarded, the EOR manages their payroll. They calculate and pay salaries, taxes, and social security contributions.
6. Ongoing Support: The EOR continues to manage HR and legal tasks throughout the employment. If an employee leaves, the EOR handles the termination process according to Turkish law.

Benefits of Using an EOR for Hiring in Turkey

Using an EOR to hire in Turkey offers several advantages. It allows you to enter the Turkish market quickly and efficiently. You can focus on your business goals while the EOR handles the complexities of local employment laws.

• Faster Market Entry: You can hire employees in a few days instead of the weeks or months it takes to set up a legal entity.
• Cost Savings: Avoid the high costs of setting up a company, such as legal fees and capital deposits.
• Compliance Assurance: The EOR ensures you comply with all Turkish labor laws, reducing the risk of fines.
• Reduced Administrative Work: The EOR manages payroll, taxes, and benefits, freeing up your time to focus on your business.
• Flexibility: An EOR allows you to easily scale your team up or down as your business needs change.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Turkey includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Turkey.

Hiring in Turkey means tapping into a diverse and growing economy. You'll find a workforce with a strong demand for tech and digital skills. The legal landscape for employment is well-defined, so understanding the rules from the start is key. This guide will walk you through the essentials of hiring your team in Turkey.

Employment contracts & must-have clauses

Written employment contracts are highly recommended in Turkey. For contracts of one year or longer, they are mandatory.

Your contract should be clear and straightforward. Here are the essential clauses to include:

• Parties involved: Full names and addresses of both you and your employee.
• Job description: A clear outline of the employee's role and responsibilities.
• Workplace: The location where the employee will work.
• Contract duration: State whether the contract is for a fixed term or an indefinite period.
• Start date: The first day of employment.
• Working hours: The standard is 45 hours per week.
• Salary and payment: Detail the gross salary, any bonuses, and how often the employee will be paid.
• Leave entitlement: Information on annual paid leave.
• Termination notice periods: The required notice for ending the contract.

Probation periods

You can include a probation period in your employment contract to see if a new hire is a good fit.

• The maximum probation period is two months.
• This can be extended to four months through a collective labor agreement.
• During the probation period, either you or the employee can terminate the contract without notice or severance pay.
• If there's no probation period clause in the contract, terminating an employee within the first two months may require you to provide notification pay.

Working hours & overtime

Standard working hours in Turkey are straightforward.

• The legal workweek is a maximum of 45 hours.
• Daily working hours cannot exceed 11.
• Any work beyond 45 hours in a week is considered overtime.

For overtime, here's what you need to know:

Instead of payment, you can also offer employees 1.5 hours of paid time off for every hour of overtime worked.

Public & regional holidays

Your employees are entitled to paid leave on public holidays. Here are the public holidays in Turkey for 2025:

• January 1: New Year's Day
• March 30 - April 1: Ramadan Feast (Ramazan Bayramı)
• April 23: National Sovereignty and Children's Day
• May 1: Labour and Solidarity Day
• May 19: Commemoration of Atatürk, Youth and Sports Day
• June 6 - June 9: Sacrifice Feast (Kurban Bayramı)
• July 15: Democracy and National Unity Day
• August 30: Victory Day
• October 29: Republic Day

Hiring contractors in Turkey

Hiring independent contractors in Turkey can give you flexibility and access to specialized skills. Contractors manage their own taxes and social security, which can simplify things for you. However, it's crucial to classify them correctly.

A true independent contractor:

• Controls their own work schedule and methods.
• Uses their own tools and equipment.
• Can work for multiple clients.
• Bears their own business risk.

Misclassifying an employee as a contractor can lead to significant penalties. If a court determines a contractor is actually an employee, you could be liable for back taxes, social security contributions, and other employee benefits.

An Employer of Record (EOR) can help you avoid these risks. An EOR legally employs the worker on your behalf, taking on all the legal responsibility for payroll, taxes, and compliance with Turkish labor law. This ensures your workers are classified correctly from the start, giving you peace of mind.

Understanding compensation and payroll in Turkey is straightforward. It starts with the employee's gross salary, and from there, you deduct social security and unemployment insurance contributions. Income tax is then calculated based on a progressive scale. As an employer, you also contribute to social security and unemployment insurance.

Payroll cycles & wage structure

In Turkey, you typically pay employees monthly. You should pay them on or before the last day of the month. While you and your employees can agree to shorter payment intervals, you cannot extend them beyond one month. All payments must be in Turkish Lira (TRY).

The wage structure is based on a gross salary. This is the total amount before any deductions. From this gross salary, you will deduct employee contributions and taxes to get to the net, take-home pay.

Overtime & minimums

The standard work week in Turkey is 45 hours, typically spread over five days. Any work beyond these hours is considered overtime. Overtime pay is higher than the regular hourly rate.

As of January 1, 2025, the national minimum wage in Turkey is TRY 26,005.50 gross per month. The net minimum wage is TRY 22,104.67 per month. All full-time employees are entitled to this minimum wage.

Employer taxes and contributions

As an employer in Turkey, you are responsible for several contributions on top of the employee's gross salary. These contributions are a significant part of your payroll costs.

Employee taxes and deductions

Employees in Turkey also contribute to social security and have income tax deducted from their pay. The income tax system is progressive, meaning the tax rate increases with income.

Income tax is calculated based on the following brackets for 2025:

In Turkey, benefits and leave are a mix of government-mandated programs and supplemental perks. The system is designed to provide a strong social safety net for employees. This is managed through the Social Security Institution (SGK), which covers healthcare, pensions, and various types of leave. Employers and employees both contribute to this system. This ensures everyone has access to basic protections.

Statutory leave

Turkish law requires employers to provide several types of paid leave.

• Annual Leave: You are entitled to paid annual leave after one year of service. The minimum amount of leave depends on your years of service:

  • 1 to 5 years of employment: 14 days.
  • More than 5 years and up to 15 years: 20 days.
  • More than 15 years: 26 days.
  • Employees under 18 or over 50 get a minimum of 20 days.

• Sick Leave: If you provide a medical report, you are entitled to sick leave. The Social Security System typically starts paying for sick leave after the third day of illness. To qualify, you must have contributed to social security for at least 90 days in the last year.

• Maternity Leave: Mothers receive 16 weeks of paid maternity leave. This can be extended for multiple births or high-risk pregnancies. After returning to work, mothers can opt for part-time work for a specified period depending on the number of children they have.

• Paternity Leave: Fathers are entitled to 5 days of paid paternity leave after the birth of their child.

• Other Leave: The law also provides for other types of leave:

  • Marriage Leave: 3 days.
  • Bereavement Leave: 3 days for the death of a close family member.
  • Adoption Leave: 3 days.

Public holidays & regional holidays

Turkey has a number of national and religious holidays. If you work on a public holiday, you are entitled to a full extra day's salary.

Typical supplemental benefits

Beyond the legally required benefits, many employers in Turkey offer additional perks to attract and retain talent.

How an EOR can help with setting up benefits

Setting up a benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you. An EOR acts as the legal employer for your team in Turkey. This means they handle all the administrative tasks related to benefits.

Here's how an EOR can help:

• Compliance: An EOR ensures your benefits package complies with all Turkish labor laws. This saves you from having to become an expert in local regulations.
• Administration: The EOR manages the enrollment of your employees in the mandatory social security system (SGK). They also handle all the required contributions.
• Supplemental Benefits: An EOR can help you offer competitive supplemental benefits. They often have established relationships with local providers for things like private health insurance. This can give you access to better rates than you could get on your own.
• Saves Time: By handling all the benefits administration, an EOR frees you up to focus on running your business. You don't have to worry about the day-to-day tasks of managing payroll and benefits.

When an employment contract in Turkey ends, you need to follow specific legal procedures. The process depends on the type of contract and the reason for termination. You can terminate a contract by mutual agreement, or one party can decide to end it. Whether you are the employer or the employee, you must provide written notice. Failing to follow the rules can lead to legal challenges.

Notice periods

You must provide a notice period before terminating an employment contract, unless there is a "just cause" for immediate dismissal. The length of the notice period is based on how long the employee has worked for you.

You can choose to pay the employee their salary for the notice period instead of having them work.

Severance pay

If an employee has worked for you for at least one year, they may be entitled to severance pay. You must pay severance unless you terminate the contract for a "just cause" related to the employee's misconduct.

Severance pay is calculated as 30 days of the employee's gross salary for each full year of employment.

Employees are also entitled to severance pay in some other situations, such as:

• Retirement
• Compulsory military service
• Death of the employee
• If a female employee resigns within one year of getting married

How Rivermate handles compliant exits

Navigating employee terminations in a different country can be complex. We make sure every step of the offboarding process is compliant with Turkish labor law.

Here’s how we help:

• Documentation: We prepare all necessary termination documents in writing.
• Calculations: We accurately calculate notice periods and any required severance pay.
• Communication: We guide you on how to communicate the termination to your employee.
• Compliance: We ensure that all legal procedures are followed to minimize the risk of disputes.

We handle the details so you can focus on your business.

Navigating the visa and work permit process in Turkey requires a clear understanding of the local rules. For foreign nationals to work in Turkey, they must secure a work permit. This permit also serves as a residence permit, allowing you to live and work in the country. The application process typically starts at a Turkish embassy or consulate in your home country. Your employer in Turkey then submits additional documents to the Ministry of Labor and Social Security.

Employment visas & sponsorship realities

An Employer of Record (EOR) can sponsor work visas for foreign employees in Turkey. This means the EOR acts as the legal employer, handling payroll, benefits, taxes, and ensuring compliance with Turkish labor laws. This arrangement allows you to work for a company that may not have a legal entity in Turkey.

However, there can be limitations. The ability to sponsor foreign nationals may be affected by visa quotas in the country. It's important to note that an EOR can hire both local and foreign workers.

Here are the practical routes for obtaining a work permit:

• Applying from outside Turkey: You will first need to apply for a work visa at the Turkish consulate or embassy in your country of residence.
• Applying from inside Turkey: If you already have a valid residence permit for at least six months, your employer can apply for a work permit on your behalf.

Business travel compliance (short‑term visits)

For short-term business trips, you may not need a full work visa. Many nationalities can enter Turkey without a visa for up to 90 days in a 180-day period for business or tourism.

Here's what you need to know for short-term business travel:

• Visa-free travel: Check if your nationality allows for visa-free entry for business purposes.
• e-Visa: If you are not from a visa-exempt country, you might be eligible for an electronic visa (e-Visa). This is a convenient online option for short business trips.
• Business Visa: For activities that involve paid work or longer stays, a business visa from a Turkish embassy or consulate is necessary. This typically requires an invitation letter from a Turkish company.

A business visa allows you to attend meetings, conferences, and negotiations, but it does not permit you to be employed in Turkey. For any form of employment, a work permit is required.