Payroll & Employment Guide: Turkey

Hiring Guide

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Employee Benefits

Mandatory Benefits:

• Paid annual leave
• Public holidays
• Social security coverage (pension, health, unemployment)
• Maternity and paternity benefits
• Occupational accident and disease insurance

Common extra benefits:

• Meal vouchers or meal allowance
• Transport allowance
• Private health insurance
• Performance bonuses

Leave Policies:

Annual Leave:

• 1–5 years of service: at least 14 days
• 5–15 years: at least 20 days
• 15+ years: at least 26 days
• Sick Leave: Certification from a doctor is required; payment arrangements involve both the employer and the Social Security Institution (SGK), depending on duration.
• Maternity Leave: Typically 16 weeks (8 before, 8 after birth), with social security benefits.
• Paternity Leave: Several days (e.g., 5 days) of paid leave upon birth.

Healthcare

Health coverage is provided through the General Health Insurance (GSS) under SGK.

• Employer and employee contributions fund access to medical services.
• Many employers offer supplementary private health insurance to attract and retain talent.

Retirement & Social Security

Turkey's social security system (SGK) covers:

• Old-age pension
• Disability and survivor benefits
• Sickness and maternity
• Work accidents

Both employer and employee must pay social security contributions based on gross salary.

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Taxes in Turkey

Turkey operates progressive income tax brackets, with rates increasing alongside income levels.

• Employers must withhold tax from salaries (PAYE-style).
• Employees may be entitled to limited deductions or credits.

Because tax brackets and rates can be updated frequently, always check the current year's bracket before processing payroll.

Payroll in Turkey

• Payroll Frequency: Typically monthly
• Payroll Currency: TRY

Employer obligations:

• Calculate gross-to-net
• Deduct income tax and employee social security
• Pay employer social security contributions
• Remit all amounts to the Tax Authority and SGK on time
• File monthly declarations

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Legal Regulations

Key laws:

• Turkish Labour Law
• Social Security and General Health Insurance Law
• Occupational Health & Safety Law

Total Employment Cost:

• Employer social security contributions and other charges can add ~20%+ on top of the gross salary (varies by risk class and incentives).

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Work Permits & Visas for Turkey

Foreign nationals generally require:

• A work permit (issued by the Ministry of Labour)
• A residence permit

The process typically involves sponsorship by a Turkish employer and can take several weeks to complete.

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Employer of Record (EOR) in Turkey

Employer of Record (EOR) services in Turkey allow companies to hire employees quickly and compliantly without establishing a local Turkish entity. The EOR becomes the legal employer, handling all statutory employment obligations while you direct day-to-day work and business operations.

EOR services in Turkey:

• Employ staff on your behalf under fully compliant Turkish employment contracts
• Handle payroll processing, including salary calculations, tax withholding, and monthly social security (SGK) contributions
• Manage statutory taxes, filings, and mandatory employer obligations
• Administer HR processes and documentation, including onboarding, employee records, and ongoing HR support
• Ensure full compliance with the Turkish Labour Law, social security rules, and employment regulations

PEO Services in Turkey
PEO services in Turkey support companies that already operate through a Turkish legal entity and want to streamline HR operations, ensure payroll accuracy, and maintain compliance with Turkish labour and social security regulations. A PEO acts as an extension of your in-house HR team, helping you reduce administrative workload and minimize compliance risks.

A PEO in Turkey assists with:

• HR administration, including onboarding, employee documentation, personnel files, and day-to-day HR support
• Payroll processing and benefits management, covering salary calculations, income tax, SGK social security contributions, and statutory benefits
• Compliance with Turkish labour laws, ensuring proper handling of employment contracts, working hours, leave entitlements, and termination requirements
• Documentation and regulatory reporting, including mandatory filings with tax authorities and social security institutions
• Ongoing employee lifecycle support, from hiring to exit procedures

EOR in Turkey

Payroll Calculator

A Turkey payroll calculator can:

• Show net pay from gross
• Estimate employer social contribution cost
• Help plan total budget per hire

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