Employers operating in Turkey must comply with detailed rules governing salary payments, payroll, overtime, social security declarations, termination rights, workplace health and safety, occupational physicians, childcare facilities, and employee compensation.
These obligations arise primarily from Turkish Labor Law No. 4857, Social Insurance and General Health Insurance Law No. 5510, Occupational Health and Safety Law No. 6331, and their secondary legislation.
For international companies employing workers in Turkey, understanding these requirements is particularly important because payroll practices that may be acceptable in another jurisdiction can result in administrative penalties, employee claims, or social security liabilities in Turkey.
This guide explains some of the key rules employers should consider when managing employees and payroll in Turkey.
What Is Considered a Wage Under Turkish Labor Law?
Under Article 32 of Turkish Labor Law No. 4857, a wage is generally defined as an amount paid in money to an individual by an employer or a third party in return for work performed.
As a general rule, salaries must be paid at least once a month.
However, an employment agreement or collective bargaining agreement may shorten the payment period to as little as one week.
This means employers cannot simply determine salary payment frequency according to their internal international payroll policies. Turkish statutory requirements must also be respected.
How Must Salaries Be Paid in Turkey?
Salary, bonuses, premiums, and other forms of employment-related remuneration must generally be paid in Turkish currency through the legally permitted payment channels.
Depending on the applicable requirements, payments are made either at the workplace or through a specially designated bank account.
Bank payments have become particularly important in Turkey as part of the authorities’ efforts to reduce undeclared employment and ensure that employees’ actual salaries are properly recorded.
Since 1 June 2016, employers meeting the applicable threshold of five or more employees have generally been required to make employee remuneration payments through a bank.
Employers that fail to comply with mandatory bank payment requirements may be subject to an administrative fine for each affected employee and for each month of non-compliance.
Administrative fine amounts are updated periodically.
Statute of Limitations for Wage Claims in Turkey
Another important issue for employers is the limitation period applicable to employee wage claims.
The limitation period for wage receivables is generally five years.
Employers should therefore maintain reliable payroll documentation, bank payment records, payslips, employment contracts, bonus calculations, and other compensation records for the appropriate retention periods.
Accurate payroll records can become particularly important if a former employee subsequently brings a claim concerning unpaid or underpaid salary, bonuses, overtime, or other employment-related remuneration.
What Happens if an Employee Is Not Paid on Time?
Article 34 of Turkish Labor Law provides employees with specific protections where wages are not paid on time.
Where an employee’s salary remains unpaid for 20 days after the payment date, except where the delay results from force majeure, the employee may have the right to refrain from performing work.
This is an important protection because an employer cannot necessarily require an employee to continue working indefinitely while wages remain unpaid.
Is Refusal to Work Because of Unpaid Wages Considered a Strike?
No.
Where employees individually exercise their statutory right to refrain from working because their salaries have not been paid within the prescribed period, their action is not automatically considered a strike merely because several employees exercise the same right simultaneously.
The collective numerical effect does not change the underlying individual nature of the statutory right.
Furthermore, employees exercising this right cannot simply be dismissed because they stopped working on this basis.
The employer may also be prevented from hiring replacement workers or transferring the affected work to others merely to circumvent the employees’ statutory protection.
Interest on Late Salary Payments
Turkish Labor Law also provides a financial consequence for late payment.
Wages that are not paid on time may be subject to the highest interest rate applicable to bank deposits, in accordance with the relevant statutory framework.
Employers should therefore consider salary payment deadlines an important compliance matter rather than merely an administrative payroll date.
Persistent delays can generate both financial liability and employment disputes.
Penalties for Intentionally Failing to Pay Wages
An employer may also face administrative sanctions where wages or other remuneration arising from:
- legislation;
- an employment agreement; or
- a collective bargaining agreement
are intentionally not paid or are underpaid.
Administrative fines may be imposed for each affected employee and each month, with the applicable penalty amounts updated periodically.
Reporting an Employee’s Actual Salary to SGK
Correctly declaring an employee’s actual remuneration to the Social Security Institution (SGK) is a fundamental payroll obligation in Turkey.
A problematic practice can arise where an employer declares only the statutory minimum wage to SGK, transfers that amount to the employee’s bank account, and pays the remainder of the actual salary separately in cash or through another undeclared method.
This constitutes a form of undeclared employment or underreported remuneration.
The fact that an employee has been formally registered with SGK does not make the arrangement compliant if the employee’s actual earnings are deliberately underreported.
Consequences of Underreporting Salary to SGK
Declaring a lower salary than the employee actually receives can have serious consequences for both employer and employee.
For the employer, it can result in administrative penalties, unpaid social security contribution assessments, and other liabilities.
For the employee, underreported earnings can reduce benefits and employment entitlements calculated by reference to declared earnings.
These can include:
- severance-related entitlements;
- notice-related compensation;
- temporary incapacity benefits;
- unemployment benefits; and
- future pension benefits.
Correct payroll reporting therefore protects both the employee’s social security rights and the employer’s compliance position.
Can an Employee Resign for Just Cause if Their Actual Salary Is Not Reported to SGK?
Potentially, yes.
Failure to reflect the employee’s actual salary in social security records may constitute grounds for the employee to terminate the employment agreement immediately for just cause under Article 24/II-e of Labor Law No. 4857.
This principle has also been addressed by the Turkish Court of Cassation, including the 9th Civil Chamber, File No. 2016/33963, Decision No. 2021/507.
For employers, deliberately underreporting salary can therefore create consequences extending well beyond an SGK administrative fine.
It may directly affect the employment relationship and termination rights.
Time Limit for Immediate Termination for Just Cause
Turkish Labor Law establishes strict time limits for exercising certain immediate termination rights.
Where termination under Articles 24 or 25 is based on conduct contrary to morality and good faith, the right to terminate must generally be exercised within six business days from the day following the date on which the party entitled to terminate becomes aware of the relevant conduct.
This is a statutory limitation period.
As a general rule, the termination right cannot be exercised more than one year after the act occurred.
Courts may take this limitation period into consideration automatically.
How Is the Six-Business-Day Termination Period Calculated?
Calculation of the six-business-day period can become important in employment disputes.
Turkish Court of Cassation case law has addressed circumstances where the employee was on leave or medically certified sick leave during the relevant period.
In a decision dated 20 January 2020, the 9th Civil Chamber of the Court of Cassation did not include certain days during which the employee was on authorized leave or medical leave when calculating the applicable six-business-day period for an employee termination.
Employers and employees should therefore avoid assuming that calculation of the period is always a straightforward matter of counting six consecutive calendar days.
Exception Where the Employee Obtains a Financial Benefit
A particular rule applies where the employee obtains a financial benefit through the misconduct, such as in certain theft cases.
In such circumstances, the general one-year maximum period may not apply in the same way.
Nevertheless, the termination must still be exercised within the applicable six-business-day period following discovery of the conduct.
Given the consequences of immediate termination, employers should document when an incident occurred, when it was discovered, who became aware of it, and when the competent decision-maker received the information.
Is a Workplace Disciplinary Board Mandatory in Turkey?
No. Turkish employers are not generally required to establish a workplace disciplinary board.
There is no universal statutory obligation requiring every company to maintain such a committee.
However, establishing a disciplinary board can provide significant practical advantages, particularly for medium-sized and large organizations.
A structured disciplinary procedure can:
- ensure consistent treatment of employees;
- provide a formal investigation process;
- reduce disputes concerning disciplinary decisions;
- allow employees to present their explanations;
- improve documentation; and
- contribute to workplace relations.
Disciplinary Boards and the Six-Day Termination Period
A disciplinary board may also have an important effect on determining when the six-business-day termination period begins.
According to Turkish Court of Cassation case law, where the employer is a legal entity, the relevant period generally begins when the person or body authorized to make the termination decision becomes aware of the incident.
The fact that an inspector investigates the incident or that the matter is considered by a disciplinary committee does not necessarily start the six-day period.
The relevant date may instead be when the incident reaches the individual or corporate body legally authorized to terminate the employment relationship.
The general one-year period, however, is linked to the date of the underlying event.
This principle was addressed by the 22nd Civil Chamber of the Court of Cassation, File No. 2016/28127, Decision No. 2019/892.
Can an Employee Be Dismissed for Damaging Company Property?
Yes, under certain circumstances.
Article 25/II-ı of Turkish Labor Law addresses cases where an employee, deliberately or through negligence:
- endangers workplace safety; or
- damages or causes loss to machinery, installations, equipment, materials, or other property belonging to the workplace or entrusted to the employee.
A particularly important threshold concerns damage that cannot be compensated by an amount equivalent to the employee’s 30 days’ wages.
Where the statutory conditions are satisfied, the employer may have the right to terminate the employment agreement immediately for just cause.
Such termination may occur without notice and without severance compensation, subject to the specific facts of the case and compliance with applicable legal requirements.
Employers should nevertheless properly investigate and document the damage, its cause, the employee’s responsibility, and its financial value before relying on immediate termination.
Is a Breastfeeding Room Mandatory in Turkish Workplaces?
Turkish occupational health and safety legislation imposes childcare-related obligations on certain employers depending on the number of female employees.
At workplaces employing between 100 and 150 female employees, regardless of their age or marital status, the employer must establish a separate breastfeeding room allowing nursing employees to breastfeed their children.
The room must be separate from the work area and located no more than 250 metres from the workplace.
When Must an Employer Provide a Nursery in Turkey?
A broader obligation applies to workplaces employing more than 150 female employees, regardless of age or marital status.
The employer must provide an appropriate nursery/daycare facility for children aged 0 to 6, allowing employees to leave their children in care and nursing employees to breastfeed them.
The facility must be separate from the work area and located close to the workplace.
Where the nursery is located more than 250 metres from the workplace, the employer must provide transportation.
Failure to comply with applicable requirements may result in administrative penalties. Penalty amounts are updated periodically and can depend on the workplace’s hazard classification.
Occupational Safety Specialist Working Time in Turkey
Turkish occupational health and safety rules determine the minimum amount of time an occupational safety specialist (iş güvenliği uzmanı) must devote to the workplace according to its hazard classification and number of employees.
The minimum monthly time per employee is generally:
| Workplace Hazard Classification | Minimum Monthly Time per Employee |
|---|---|
| Less hazardous | 10 minutes |
| Hazardous | 20 minutes |
| Very hazardous | 40 minutes |
The total required occupational safety specialist time therefore increases according to both workforce size and workplace hazard classification.
Occupational Physician Working Time in Turkey
Employers subject to occupational health requirements must also ensure sufficient working time for the occupational physician (işyeri hekimi).
The minimum monthly working time per employee is generally:
| Workplace Hazard Classification | Minimum Monthly Time per Employee |
|---|---|
| Less hazardous | 5 minutes |
| Hazardous | 10 minutes |
| Very hazardous | 15 minutes |
Companies should therefore determine their official workplace hazard classification before calculating occupational health and safety staffing requirements.
When Is a Full-Time Occupational Safety Specialist Required?
The threshold for employing a full-time occupational safety specialist depends on the workplace hazard classification.
The relevant workforce thresholds are generally:
| Workplace Hazard Classification | Employee Threshold |
|---|---|
| Less hazardous | 1,000 employees |
| Hazardous | 500 employees |
| Very hazardous | 250 employees |
Once the applicable threshold is reached, the employer must comply with the full-time occupational safety specialist requirements provided by Turkish legislation.
When Is a Full-Time Occupational Physician Required?
Separate workforce thresholds apply to full-time occupational physicians.
They are generally:
| Workplace Hazard Classification | Employee Threshold |
|---|---|
| Less hazardous | 2,000 employees |
| Hazardous | 1,000 employees |
| Very hazardous | 750 employees |
These requirements can create substantial compliance obligations for large industrial employers, manufacturing companies, construction businesses, logistics operations, and other organizations operating higher-risk workplaces in Turkey.
What Is Overtime in Turkey?
Under Turkish Labor Law, overtime work (fazla çalışma) generally refers to work performed beyond the statutory normal working time of 45 hours per week.
Where an employment agreement establishes a normal weekly working time below 45 hours, work performed above the contractual weekly hours but up to 45 hours is treated differently.
This is known as work at extra hours (fazla sürelerle çalışma).
The distinction is important because different premium rates apply.
How Is Overtime Pay Calculated in Turkey?
For ordinary overtime exceeding 45 hours per week, the employee is generally entitled to an hourly wage increased by 50%.
In other words:
Overtime hourly pay = normal hourly wage × 1.50
If an employee’s normal hourly wage is TRY 100, one hour of qualifying overtime would therefore correspond to TRY 150.
For extra-hours work where contractual weekly hours are below 45 hours, but the employee works additional hours up to the 45-hour threshold, the applicable increase is generally 25%.
The calculation would therefore be:
Extra-hours pay = normal hourly wage × 1.25
For an employee earning TRY 100 per hour, this would correspond to TRY 125 per additional hour.
Can Employees Take Time Off Instead of Overtime Pay?
Under the applicable rules, an employee may request compensatory free time instead of receiving the corresponding overtime premium.
For each hour of ordinary overtime, the employee may receive 1.5 hours of free time.
For each hour of extra-hours work, the employee may receive 1.25 hours of free time.
The employee should make the relevant request in writing in accordance with the applicable procedure.
This arrangement should not be confused with an employer unilaterally refusing to pay overtime. The employee’s choice and statutory requirements remain important.
Maximum Daily and Annual Overtime in Turkey
Working-time rules establish important limits that employers must respect even where employees agree to work additional hours.
As a general principle:
Daily working time cannot exceed 11 hours.
In addition:
Annual overtime cannot exceed 270 hours per employee.
Companies should therefore track overtime throughout the year rather than reviewing working hours only at the end of each payroll period.
For international employers, this can require adapting global time-tracking systems to Turkish working-time rules.
Can Overtime Arise Even if an Employee Works Less Than 45 Hours Per Week?
Yes.
This is an important point established in Turkish Court of Cassation case law.
An employee’s total weekly working time does not always need to exceed 45 hours for particular work to qualify for overtime treatment.
For example, exceeding statutory daily working-time limits can result in overtime entitlement.
According to Court of Cassation decisions, work exceeding 11 hours during daytime work or applicable limits concerning night work, including the relevant 7.5-hour night-work rules, may generate overtime entitlement even where total weekly working time does not exceed 45 hours.
Qualifying overtime is generally paid with the applicable 50% premium.
This principle has been addressed in decisions including those of the 9th Civil Chamber of the Court of Cassation, File No. 2016/16308, Decision No. 2020/5438, and File No. 2017/18461, Decision No. 2020/15353.
Rest Periods and Working-Time Organization
Employers must also organize working and rest periods in accordance with Turkish legislation.
Factors such as:
- climate;
- season;
- local practices;
- nature of the work; and
- statutory rest requirements
may need to be considered when organizing shifts and break periods.
Working-time compliance should therefore be assessed as a complete system rather than simply by checking whether the employee remained below 45 hours during a particular week.
Does Internship Insurance Count for Maternity Service Credit?
Turkish social security law contains an important distinction concerning internship insurance and retirement.
As a general principle, insurance registration arising solely from certain internships does not constitute the initial insurance date for ordinary retirement purposes because the applicable insurance arrangement does not include all long-term insurance branches.
However, internship insurance can be relevant in another context: maternity service credit (doğum borçlanması).
Maternity Service Credit in Turkey
Eligible female insured persons may purchase social security contribution days for qualifying periods following childbirth.
Subject to statutory conditions, maternity service credit can generally cover up to two years per child, for a maximum of three children.
This means a qualifying insured woman may potentially obtain up to six years of credited contribution periods.
An important condition is that the woman must have an insurance registration before the relevant childbirth.
For this particular purpose, an eligible internship insurance registration may be taken into account as a pre-birth insurance registration, even though the same internship registration does not normally establish the retirement insurance starting date.
The distinction between a retirement insurance start date and an insurance registration relevant to maternity service credit is therefore important when assessing an individual’s SGK history.
Payroll and Employment Compliance for Employers in Turkey
Managing employees in Turkey involves considerably more than calculating monthly gross and net salaries.
Employers must coordinate several areas simultaneously, including:
- salary payment deadlines and banking requirements;
- accurate SGK salary declarations;
- overtime and working-time calculations;
- employee termination procedures;
- disciplinary investigations;
- workplace health and safety obligations;
- occupational safety specialists and occupational physicians;
- childcare and breastfeeding facilities; and
- social security reporting.
For multinational companies without an established HR and payroll infrastructure in Turkey, these requirements can become particularly complex.
Payroll and Employer of Record Services in Turkey
International companies hiring employees in Turkey should ensure that payroll practices comply with Turkish employment, tax, and social security legislation from the beginning of the employment relationship.
Using a local payroll provider or Employer of Record (EOR) in Turkey can help companies manage areas such as:
- employee onboarding;
- employment agreements;
- monthly payroll calculations;
- SGK registration and declarations;
- salary payments;
- overtime calculations;
- statutory benefits;
- employee expenses;
- leave management;
- termination calculations; and
- ongoing HR compliance.
A properly structured payroll process also helps ensure that the employee’s actual remuneration is correctly reported and that the company maintains appropriate supporting documentation.
Why Accurate Payroll Matters in Turkey
Incorrect payroll practices can create liabilities that extend beyond a simple salary adjustment.
Underreporting salaries to SGK, failing to pay wages on time, incorrectly calculating overtime, or disregarding working-time limitations can potentially result in:
- administrative fines;
- retroactive social security liabilities;
- interest;
- employee claims;
- termination disputes;
- severance-related liabilities; and
- litigation.
For this reason, foreign employers entering the Turkish market should consider payroll compliance an integral part of their employment strategy rather than a purely administrative function.
Turkish employment law provides extensive protections regarding salary payments, payroll reporting, overtime, termination rights, workplace safety, and employee welfare.
Employers must ensure that salaries are paid correctly and on time, actual remuneration is reported to SGK, overtime is properly recorded and compensated, and statutory occupational health and safety obligations are respected.
The rules can become particularly complex when dealing with disciplinary procedures, immediate termination, daily and weekly working-time limits, occupational safety staffing, and social security matters.
International companies employing personnel in Turkey should therefore maintain reliable HR and payroll processes and regularly review their practices against current Turkish legislation.
Professional payroll and Employer of Record services in Turkey can help international businesses manage these obligations while reducing administrative complexity and employment compliance risks.