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Employer of Record Turkey
Hire staff and expand your business in Turkey with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Turkey designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Turkey. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Turkey takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Turkey
A Brief Guide to Turkey
Turkey, the bridge between Europe and Asia, stands proud with its rich history, diverse cultures, bustling cities, and bustling bazaars. Its economic landscape is as varied as its geography, a blend of modern industries and traditional craftsmanship.
Category | Information |
Location | South-Eastern Europe and Western Asia |
Capital City | Ankara |
Official Languages | Turkish |
Area | 783,356 km² |
Population | Approx. 85 million |
Currency | Turkish Lira |
Major Cities | Istanbul, Izmir, Bursa |
GDP | Approx. $850 billion (nominal) |
Major Industries | Automotive, Textiles, Agriculture, Electronics, Tourism |
Business Culture
Business Culture in Turkey
In Turkey, the business culture often reflects the nation’s East-meets-West charm. It’s a blend of formal, respectful interactions with a strong focus on relationship building. Business meetings typically start with small talk, which is a means of establishing rapport before diving into the business specifics. Hierarchy is respected in Turkish businesses, and decisions tend to be made by the top management. However, team input is valued, and meetings are often inclusive. Hospitality is also a cornerstone of Turkish business culture, and it’s not uncommon to be invited for meals or coffee meetings.
Payroll and Taxes
Payroll and Taxes in Turkey
Collective agreements provide for the payment by employers of a fixed Christmas bonus payable in December and a Holiday bonus payable from 1 May to 15 August.
Employee Taxation
In Turkey, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (TRY) | Tax Rate |
0 – 70,000 | 15% |
70,001 – 150,000 | 20% |
150,001 – 550,000 | 27% |
550,001 – 1,900,000 | 35% |
1,900,001 + | 40% |
Employer Taxation
Employers in Turkey are also responsible for various employer costs, which may include:
Fund Type | Contribution |
Social Security | 15.5% – 20.5% (taxable salary capped at TRY 75,060) |
Unemployment Insurance | 2% |
Pension and Healthcare
Turkey Pensions
The pension system in Turkey is largely administered by the Social Security Institution (SGK). Employees, employers, and the state all contribute to the pension fund. It’s mandatory for all employees in Turkey to be registered with the SGK. Both the employee and employer contribute a certain percentage of the gross salary to the pension scheme. The state contributes as part of its social security obligations. The SGK oversees the distribution of these pensions to the retired populace.
Healthcare in Turkey
Turkey has a mixed healthcare system with both public and private sectors playing pivotal roles. The healthcare system is funded by the government through tax revenues and social security premiums. Healthcare in Turkey is administered by the Ministry of Health, which operates a vast network of public healthcare institutions throughout the country.
Public healthcare is available to all citizens and residents. In recent years, Turkey has implemented a universal healthcare system known as the General Health Insurance scheme, ensuring easy access to healthcare services for all residents. The quality of care in public healthcare institutions is generally good, though it can vary. Larger cities often have better facilities and more specialist care compared to rural areas.
Private healthcare in Turkey is flourishing, especially in urban areas. Many people opt for private health insurance, which gives them access to private hospitals and clinics. These establishments often provide faster service, a wider range of treatment options, and more comfortable facilities compared to their public counterparts. However, private healthcare comes at a higher cost.
In both systems, Turkey is home to world-class medical professionals and state-of-the-art medical technology, leading to an influx of medical tourism in recent years.
Employment Law
Employment Law in Turkey
Relevant Legislation:The main laws governing employment in Turkey are the Labor Law No. 4857, the Social Security and General Health Insurance Law No. 5510, and the Trade Unions and Collective Labor Agreements Law No. 6356.
Employment Contracts: Employment contracts in Turkey can be indefinite or fixed-term, based on the nature of the job. These contracts can be written or verbal, but for certain types like fixed-term contracts, a written document is mandatory.
Working Hours: The standard workweek in Turkey is 45 hours, typically spread over 5 days. Any hours worked above this threshold are generally considered overtime.
Leave: The minimum annual leave entitlement in Turkey is 14 days for employees with 1-5 years of service, 20 days for 5-15 years, and 26 days for those with over 15 years of service. Additionally, employees are entitled to paid public holidays.
Overtime: Work exceeding 45 hours a week is considered overtime. The overtime limit is 270 hours per year. Overtime is compensated at 150% of the regular hourly rate or can be compensated by equivalent time off.
Termination: Both employer and employee can terminate an indefinite term employment contract by adhering to statutory notice periods. The grounds for termination can be valid reasons related to the employee’s competence or behavior, or based on economic, technological, or structural requirements of the business or workplace.
Notice: Employers are required to give notice when terminating an employment contract. The notice period depends on the length of the employee’s service: 2 weeks for service of 6 months or less, 4 weeks for service of 1.5 years or less, 6 weeks for service of 3 years or less, and 8 weeks for service of more than 3 years.
Severance Pay: Employees with a minimum of one year of service are entitled to severance pay upon termination by the employer. Severance pay is calculated based on the employee’s last 30 days’ gross earnings and length of service.
IMMIGRATION
Work Permits in Turkey
In Turkey, the immigration process is primarily managed by the Directorate General of Migration Management (DGMM). Their responsibilities include issuing residence permits, managing refugee and asylum seeker affairs, and enforcing immigration law.
The first step for any foreign national seeking to work in Turkey is to secure a job offer from a Turkish company. Once an offer is accepted, the employer typically initiates the work permit application process on behalf of the foreign employee. It’s worth noting that there are specific quotas for hiring foreign employees, ensuring that opportunities for Turkish citizens are protected. The most common types of work permits in Turkey include:
- Independent Work Visa: Ideal for foreign investors, business owners, or freelancers. The applicant must prove that their work will contribute to Turkey’s economy or labor market.
- Dependent Work Visa: This is the most common type, issued to employees hired by a Turkish company. The employer initiates the application process, and the work permit is granted based on the employment contract’s duration.
- Professional Work Visa: This type is specific to certain occupations like journalists, architects, engineers, and doctors. It often requires proving professional qualifications.
These work permits are initially granted for one year. After that, depending on the contract length and the nature of the job, permits can be extended for two or three years.
For those seeking to move to Turkey permanently, a long-term residence permit or Turkish citizenship might be considered. The long-term residence permit is available to foreigners who have lived in Turkey legally and continuously for at least eight years. In contrast, the criteria for obtaining Turkish citizenship are more diverse, including options such as investing in the Turkish economy, owning property, or having a Turkish spouse or parent.
Public Holidays
Turkey Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
National Sovereignty and Children’s Day | April 23 |
Labour and Solidarity Day | May 1 |
Commemoration of Atatürk, Youth and Sports Day | May 19 |
Democracy and National Unity Day | July 15 |
Victory Day | August 30 |
Republic Day | October 29 |
Eid al-Fitr | Variable (3 days after Ramadan) |
Eid al-Adha | Variable (70 days after Eid al-Fitr) |
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The Benefits
Turkey Employer of Record Benefits
When you choose Agility EOR to expand in Turkey, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Turkey so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Turkish authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Turkey payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.