When expanding into new markets, compliance with local labor regulations is one of the biggest concerns for international companies. For those looking to hire in Turkey, the country’s labor laws can appear complex—but they are essential to understand in order to avoid legal issues and ensure fair treatment of employees.
One effective solution to navigating this legal landscape is working with an Employer of Record (EOR). EOR providers in Turkey help foreign companies stay fully compliant with Turkish labor law while allowing them to focus on business operations and growth.
In this article, we’ll break down the key elements of Turkish labor law that every EOR client should know, and explain how an EOR ensures full legal compliance.
Why Understanding Turkish Labor Law Is Important for EOR Clients
Even when you hire employees through an EOR in Turkey, your business remains responsible for:
- Day-to-day management of the employee
- Setting working conditions
- Respecting local workplace norms
Meanwhile, the EOR takes on legal employer responsibilities, including payroll, taxes, contracts, benefits, and compliance with labor regulations.
Understanding the basics of Turkish labor law helps you:
- Protect your business from reputational and financial risks
- Maintain a compliant and ethical workplace
- Work effectively with your EOR partner
1. Employment Contracts in Turkey
Written Contracts Are Required
In Turkey, employment contracts must be in writing if the employment relationship lasts longer than one month. Most EORs issue contracts in both Turkish and English to ensure transparency.
Contracts typically include:
- Job title and description
- Salary and payment terms
- Working hours
- Start date and contract duration
- Termination conditions
- Social security registration
Types of Contracts
- Open-ended contracts: Most common; no fixed end date.
- Fixed-term contracts: Valid for a specific duration or project. Renewal must be justified, or it becomes indefinite.
EORs in Turkey ensure that all contracts are drafted in line with Labor Law No. 4857 and registered with the relevant authorities.
2. Working Hours and Overtime
Standard Working Hours
According to Turkish labor law, standard working time is 45 hours per week, typically distributed over 5 or 6 days.
- Daily working time should not exceed 11 hours.
- Breaks are mandatory during long shifts (e.g., 1-hour break for 7.5+ hours of work).
Overtime Rules
- Overtime work is paid at 150% of the regular hourly wage.
- Overtime is capped at 270 hours per year per employee.
- Alternatively, employees may take compensatory time off instead of extra pay.
An EOR in Turkey monitors working hours and ensures legal overtime payments and record-keeping.
3. Minimum Wage in Turkey
Turkey has a national minimum wage, which is reviewed and adjusted twice a year by the government.
As of mid-2025 (update as needed), the gross monthly minimum wage is:
➡️ [Insert up-to-date figure, e.g., 17,002.12 TRY gross in July 2024]
This amount includes:
- Base wage
- Social security contributions
- Income tax
- Unemployment insurance
EORs always ensure salaries meet or exceed the minimum wage based on job type and location, and handle all statutory deductions properly.
4. Social Security and Income Tax
Social Security Contributions (SGK)
Social security is mandatory and covers:
- Health insurance
- Retirement pensions
- Maternity and sick leave
- Disability and death benefits
Contribution rates (2025):
- Employer share: ~20.5% of gross salary
- Employee share: ~14%
Income Tax (Withholding Tax)
Employees pay progressive income tax, ranging from 15% to 40%, depending on income level.
The EOR:
- Calculates and deducts income tax monthly
- Files tax declarations to Turkish tax authorities
- Manages employee registration with SGK
This ensures full compliance with Turkish tax law.
5. Annual Leave and Public Holidays
Paid Annual Leave
Employees are entitled to paid leave based on years of service:
| Years of Service | Annual Leave Entitlement |
|---|---|
| 1–5 years | 14 working days |
| 5–15 years | 20 working days |
| 15+ years | 26 working days |
Additional leave may be granted based on company policy or employment contract.
Public Holidays
Turkey observes official national holidays, including:
- New Year’s Day (January 1)
- National Sovereignty Day (April 23)
- Labor Day (May 1)
- Republic Day (October 29)
- Religious holidays (Ramadan Feast, Kurban Bayram)
Employees are entitled to full paid leave on these days. The EOR adjusts payroll accordingly.
6. Sick Leave and Health Benefits
Employees who provide a doctor’s report are entitled to sick leave. During this time:
- The Social Security Institution (SGK) pays a portion of the wage (temporary incapacity allowance).
- The employer may top up the difference, based on company policy or contract.
EORs manage the paperwork, SGK coordination, and ensure employees receive proper benefits.
7. Maternity and Paternity Leave
Maternity Leave
- 16 weeks total: 8 weeks before and 8 weeks after birth
- Can be extended for multiple births or complications
- Paid by SGK based on average earnings
Paternity Leave
- Fathers are entitled to 5 days of paid paternity leave.
EOR providers ensure proper documentation, benefit claims, and legal timelines are respected.
8. Termination and Severance Pay
Termination is a highly regulated area in Turkish labor law.
Termination Notice Periods
| Years of Service | Notice Period |
|---|---|
| < 6 months | 2 weeks |
| 6–18 months | 4 weeks |
| 18–36 months | 6 weeks |
| > 3 years | 8 weeks |
Either party can terminate the contract with notice or payment in lieu.
Severance Pay
Employees with at least 1 year of service are entitled to severance pay if:
- They are dismissed without cause
- They resign for a valid reason
- The contract ends due to retirement, military service, etc.
Severance = 1 month’s gross salary per year of service
EORs in Turkey handle termination procedures with proper legal documentation, ensuring all severance, notice, and entitlements are paid according to the law.
9. Work Permits for Foreign Employees
If a foreign national is to be employed in Turkey, a work permit is required. The EOR:
- Applies for the permit on your behalf
- Coordinates with the Turkish Ministry of Labor
- Ensures compliance with quota systems and documentation requirements
Permit processing typically takes 4–6 weeks. Some positions and sectors may have restrictions or prioritizations.
10. Employee Rights and Dispute Resolution
Turkish law strongly protects employee rights. Employees can file complaints with:
- Labor courts
- Turkish Employment Agency (İŞKUR)
- Social Security Institution (SGK)
Typical disputes include:
- Unlawful dismissal
- Unpaid wages or benefits
- Discrimination or harassment
An experienced EOR in Turkey ensures contracts, records, and procedures are legally sound—minimizing legal disputes and protecting your reputation.
Turkey offers exciting opportunities for foreign businesses—but only if they navigate its employment laws correctly. Partnering with a trusted Employer of Record (EOR) in Turkey allows you to hire confidently, remain compliant, and avoid unnecessary legal or financial risks.
By managing contracts, payroll, taxes, benefits, and labor law compliance, an EOR becomes your shield in the Turkish labor landscape—allowing you to focus on growing your business.
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