Turkey has become one of the most attractive destinations for international employers seeking to expand their global workforce. With its strategic location between Europe and Asia, a young and educated labor force, and competitive operating costs, Turkey offers a unique combination of talent and opportunity.
However, hiring employees in Turkey requires a solid understanding of local labor laws, payroll obligations, and employment best practices. Whether you are a global corporation entering the Turkish market or a startup hiring remotely, compliance with Turkish employment regulations is essential for smooth operations.
This article provides a comprehensive guide on hiring in Turkey, covering labor laws, contracts, benefits, payroll, and best practices for global companies looking to build compliant and efficient teams.
1. Overview of the Turkish Labor Market
Turkey’s workforce is one of the largest and youngest in Europe. Over 32 million people participate in the labor force, and more than half of the population is under the age of 32.
The country is rich in skilled professionals across engineering, technology, manufacturing, finance, and customer service sectors. English proficiency is widespread, especially among university graduates and urban professionals, making Turkey ideal for international hiring.
The average monthly salary in Turkey varies by industry, but labor costs remain significantly lower than in Western Europe—offering a cost-effective way for global companies to expand.
2. Legal Framework: Employment Law in Turkey
Employment in Turkey is primarily regulated by the Turkish Labor Law No. 4857, the Social Security Law No. 5510, and related regulations. These laws govern working conditions, contracts, wages, social benefits, and termination rights.
Foreign companies operating in Turkey must comply with these rules whether they hire employees directly or through an Employer of Record (EOR) service.
Equal Treatment of Employees
Turkish law prohibits discrimination based on gender, race, religion, or political opinion. All employees must receive equal pay and benefits for equal work.
Labor Inspections
The Ministry of Labor and Social Security regularly monitors compliance to ensure that employment standards are respected, including fair wages, safe workplaces, and timely payments.
3. Employment Contracts in Turkey
Under Turkish law, every employment relationship must be documented through a written employment contract. Contracts can be definite (fixed-term) or indefinite (open-ended) depending on the nature of the job.
Key Contract Requirements:
A compliant Turkish employment contract must include:
- Employee and employer details
- Job title and description
- Start date and duration (if applicable)
- Working hours and workplace location
- Salary and payment terms
- Benefits and allowances
- Termination clauses and notice periods
Contracts must be written in Turkish, although bilingual versions (e.g., English–Turkish) are widely used in international companies.
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4. Working Hours and Overtime Rules
Standard Working Hours
The maximum working time in Turkey is 45 hours per week, typically divided into five or six working days. Employees cannot work more than 11 hours per day.
Overtime
Any work exceeding 45 hours per week is considered overtime, compensated at 150% of the regular hourly rate. Alternatively, employees may receive time off in lieu instead of extra pay.
Rest and Holidays
- Employees are entitled to at least one full day of rest per week, usually Sunday.
- There are official public holidays totaling around 15 days per year, which must be fully paid.
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5. Annual Leave and Other Paid Absences
Paid leave entitlements in Turkey depend on the employee’s length of service:
| Seniority | Annual Leave Entitlement |
|---|---|
| 1–5 years | 14 working days |
| 6–14 years | 20 working days |
| 15+ years | 26 working days |
Employees also have the right to paid sick leave, maternity and paternity leave, and unpaid personal leave in specific circumstances.
Maternity and Paternity Leave
- Maternity leave: 16 weeks (8 before and 8 after birth), fully paid.
- Paternity leave: 5 days paid.
- Additional unpaid leave can be granted for childcare after maternity leave.
Sick Leave
Employees covered by the Social Security Institution (SGK) receive daily sickness benefits starting from the third day of illness.
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6. Minimum Wage and Salary Payments
Turkey adjusts its minimum wage annually based on inflation and economic conditions. As of 2025, the gross monthly minimum wage is TRY 20,000, equivalent to approximately USD 580 (subject to exchange rate fluctuations).
Employers must pay salaries monthly, directly to the employee’s bank account, and issue pay slips detailing gross pay, deductions, and net salary.
Payments must comply with tax and social security withholding obligations.
7. Payroll, Tax, and Social Security Contributions
Income Tax
Employees’ wages are subject to progressive income tax ranging from 15% to 40%, deducted by the employer at source.
Social Security Contributions (SGK)
Both employers and employees contribute to the Social Security Institution (SGK) for pensions, health insurance, and unemployment benefits.
| Contribution Type | Employer | Employee |
|---|---|---|
| Social Security | 20.5% | 14% |
| Unemployment Insurance | 2% | 1% |
The employer is responsible for filing and remitting these contributions monthly.
Stamp Tax
A small stamp tax (0.759%) applies to gross salaries.
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8. Termination and Severance Pay
Notice Periods
The notice period depends on the employee’s length of service:
| Length of Service | Notice Period |
|---|---|
| 0–6 months | 2 weeks |
| 6–18 months | 4 weeks |
| 18–36 months | 6 weeks |
| 3+ years | 8 weeks |
Employers can terminate employment immediately by paying compensation in lieu of notice.
Severance Pay
Employees with at least one year of service are entitled to severance pay equal to one month’s gross salary per year worked if they are dismissed without valid cause, retire, or leave due to military service or maternity.
Wrongful Termination
Unlawful dismissal may lead to reinstatement claims or compensation under Turkish labor law, emphasizing the importance of documented and justified terminations.
9. Hiring Foreign Employees in Turkey
Foreign nationals wishing to work in Turkey must obtain a work permit and a residence permit. Employers are responsible for applying for the work permit on behalf of the employee through the Ministry of Labor and Social Security.
Some exceptions apply for senior executives, short-term consultants, or employees working in Free Zones, where regulations are more flexible.
Companies hiring foreigners must ensure:
- The employee’s position justifies hiring a non-Turkish national.
- At least five Turkish employees are employed for each foreign worker (for companies with over one foreign hire).
Alternatively, global companies can hire Turkish professionals remotely through an Employer of Record (EOR), avoiding the need to establish a local entity.
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10. Using an Employer of Record (EOR) to Hire in Turkey
For companies entering Turkey without setting up a local subsidiary, an Employer of Record (EOR) is the most efficient and compliant solution.
An EOR acts as the legal employer on behalf of your company, handling:
- Drafting compliant employment contracts
- Payroll management and tax filing
- Social security and benefits administration
- Employment law compliance
- Termination and severance procedures
This allows your company to hire Turkish employees quickly and legally, without the complexity of establishing a local entity.
Benefits of Using an EOR in Turkey
- Fast market entry
- Full compliance with Turkish labor and tax laws
- Reduced administrative costs
- Flexible workforce management
- Seamless onboarding of local or remote employees
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11. Best Practices for Global Companies Hiring in Turkey
To build a compliant and effective workforce, global companies should follow these best practices:
- Use bilingual contracts to ensure clarity for both parties.
- Register with the SGK immediately after hiring an employee.
- Pay salaries and taxes on time to maintain compliance.
- Understand cultural and communication norms — Turkish workplaces value respect, hierarchy, and long-term relationships.
- Partner with an EOR or local HR advisor to navigate regulations and avoid legal risks.
- Stay updated on changes to labor laws and minimum wage adjustments.
12. Conclusion: Building a Compliant and Successful Team in Turkey
Hiring in Turkey offers tremendous potential for global companies. The country’s young talent pool, strategic position, and evolving economy make it an ideal location for expanding operations.
However, compliance with Turkish employment regulations—from contracts and payroll to social security and termination—is essential for long-term success.
By partnering with an Employer of Record (EOR) in Turkey, international companies can simplify hiring, reduce administrative burden, and ensure full compliance with local labor laws—all while focusing on business growth.
Turkey is not just a bridge between continents—it’s a bridge to opportunity, offering access to a skilled workforce and a thriving business environment for global expansion.