Guide to employing in Turkiye

Turkiye

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Capital City

Istanbul

Currency

Turkish Lira, TRY, (1=100 Kurus)

Population Size

85,300,000

Language Spoken

Turkish

Overview

Hiring and employing people across borders can be costly and time-consuming, especially if your business is unfamiliar with the intricacies of local labour laws.

XPANDIUM offers credible Employer of Record (EOR) services in Turkiye (Turkey) for all companies wanting to hire employees compliantly and efficiently. Our EOR experts can assist you in navigating the complexities of Turkish labour regulations without establishing a legal entity in Turkiye.

By selecting XPANDIUM as your Employer of Record in Turkiye, we will provide compliant onboarding, payroll management/administration, tax payments and benefits through our own local EOR entity, leaving you to focus on the vital part – optimising your workforce and maximising your business’s full potential.

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Xpandium - Hire your employees in Turkey

Xpandium is your specialist partner when it comes to hiring employees in Turkiye (Turkey). Turkiye’s labour market is governed and regulated by labour laws which aim to protect the rights of both employers and employees and promotes fair and healthy workplace practices.

When your company hire employees in Turkiye, you will be expected to comply with regulations about wages, paid time off, unions and termination of employee contracts. This legal landscape can be daunting to navigate without the relevant knowledge or experience, and non-compliance can become expensive and time-consuming, often leading to penalties and fines for the offending company.

By partnering with XPANDIUM, we can help you navigate these legal pitfalls and ensure your company establishes the correct procedures to manage its employees in line with the country’s labour procedures.

Turkiye’s labour code also covers unions and negotiation agreements. XPANDIUM ensures your business maintains relationships with labour organisations while complying with legal requirements. We offer you seamless guidance and support and guarantee that proper labour practices will be followed and maintained.

Discover the potential of Turkiye’s labour market with the expert support of XPANDIUM. Our EOR services offer you a comprehensive solution for hiring workers in Tukiye.

Employment Contract

Employment relationships may be agreed on for

fixed term employment (temporary) or
indefinite duration (open-ended, permanent).

Probation period

Probation period is optional and cannot exceed 4 months.In case of fixed-term contracts, the probation period can not be more than 50% of the term of the contract.

Working hours

Full time employment is considered 8 hours per day and 40 hours per week in Turkey. Less hours will mean part-time work.

Hours worked above 8 hours per day / 40 per week or on public holidays are considered overtime. Employer and Employee must agree on working overtime.

Overtime hours cannot exceed a total of 8 hours within a 7 days’ period and must be compensated during payroll for overtime as per local law.Parties may agree that the overtime hours over a 4-months’ time-frame schedule be an average 12 hours for every 7 calendar days.

Minimum wage

The current minimum wage is 584 EUR for full-time employment or 3.84 EUR for hourly work in Turkey.

13th month salary

Not required.

Benefit package

In Turkey, there are no obligatory fringe-benefits that an Employer must offer, however a custom benefit plan may be set up for your team (see more details at the Benefit section).

Payroll Cycle

Salaries are payrolled and paid on a monthly basis.

Health insurance in Turkey

The Turkish health insurance system is a solidarity-based social insurance system. This means it provides healthcare for everyone, including persons insured by employment agreement. Turkey is covered by health care and treatment is equally available in all regions. Employees can order a European Health Insurance Card or its replacement certificate in the State Portal.

Employer taxes

33.8% total employment cost in Turkey.

Public Holidays

NAME

DATE

INFO

New Years Day

January 1

Independence Day

February 24

Good Friday

April 2

Friday before Easter Sunday

Easter Monday

April 4

Varies yearly

Labor / Spring Day

May 1

Pentecost

May 23

Victory Day

June 23

Jaanipäev

June 24

Turkish Day

August 20

Turkish Restoration of Independence

Christmas Eve

December 24

Christmas Day

December 25

2nd Day of Christmas

December 26

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Popular benefits in Turkey

When your company uses XPANDIUM’s payroll services in Turkiye (Turkey), we will help you design competitive compensation packages to attract top-tier talent in the Turkish labour market.

This means that in addition to salary, you can offer employees one or more of the following non-salary benefits:

Supplementary medical insurance (such as private health, dental and vision insurance)

Supplementary life insurance or other unique insurance plans

Additional paid time off

Flexible working schedules

Voluntary pension fund scheme

Benefit planning process includes

Offering additional benefits to one or a select group of employees needs to be planned and formally presented as a side agreement with your employee’s employment contract.

XPANDIUM can help your company design and implement these benefit programs when you hire employees in Turkiye (Turkey). This process will include:

Determine the annual benefit amount you want to offer your employees – this amount can be divided by 12 and integrated into the regular payroll.
Select the specific benefit items your company would like to offer its employees – this may include voluntary benefits such as medical insurance, additional paid time off and flexible work schedules.
Creating internal policies which will outline the details of the benefits plan. These policies must be formally and thoroughly communicated to relevant employees and integrated with the monthly payroll.
Ensuring employees have accurately completed benefit statements – specifying preferred benefits and respective amounts. These statements must be completed, signed and provided to the Polish Employer of Record for processing.

Types of Leaves in Turkey

Paid leave

Employees are entitled to 28 days.

Public holidays

There are 12 public holidays in Turkey.

Sick leave

An employee is entitled to 182 sick-leave days yearly while enrolled in the national social security system.

Payment is 70% of the employee’s average salary, which is paid by the Employer from the 4th day of sickness but from the 9th day the payment is taken over by the State.

Pregnancy and maternity leave

Expecting women can have a total of 20 weeks / 140 days.

Maternity leave may include and start 70 days prior to giving birth. State health insurance covers maternity leave with 100% payment.

Parents receive a one-time 320 EUR allowance for child birth and in case of triplets the payment is 1,000 EUR per child.

Paternity / paternal leave

The father is entitled to 10 working days off for paternity leave which can be granted within 2 months of the expected child’s birth date. After the birth, fathers are entitled to 2 months of paternity leave with the payment of 100% average salary payment, however it is capped at 3 times of the minimum wage amount.

Other / Child Adoption leave

Employees are entitled to a special leave if adopting a child under the age of 10.

Other / Child care leave

Any parent may take paid leaves for taking care of a child.

Leave varies based on the age of child:

3 days - up to 2 children under the age of 14
6 days - 3+ children under the age of 14

Payment for days taken is calculated based on the minimum wage.

Employment termination in Turkey

Employers have the below options to terminate an employment contract in Turkey:

Termination under probation period

Termination by the Employer is immediately effective with a special 15 days’ written notice to the Employee.

Resignation by Employee

Employees may freely terminate their employment contract with a written notice of minimum 14 days to 1-month notice.

Termination by Employer with notice

An employment agreement may be terminated by the Employer by notice with below period of notices.

If employment period is

up to 1 year period: 15 calendar days
from 1 to 5 years of employment: 30 calendar days
from 5 to 10 years of employment: 60 calendar days
10+ years of employment: 90 calendar days

Termination of fixed term contract

If termination is due to Employer’s redundancy, the employee is entitled to the salary that they would have received from the date of termination to the expiry date of the contract.

Termination by mutual consent

The termination by mutual consent allows the Employer and Employee to agree freely in a written agreement with each other on the conditions of termination.

Expiry of employment contract

When the employment contract expires then such employment is automatically terminated.

Severance pay

Employee is entitled to severance pay if the Employer terminates the contract due to redundancy. The severance pay is the average salary calculated based on the latest 6 months salary.

Employees are entitled to receive higher amounts of severance pay depending on the length of employment with the Employer:

From 5-10 years of employment: +1 month salary
over 10 years of employment: +1 month salary

How EOR works in Turkiye

Unlocking your business’s international potential demands expert insight, especially in navigating the complex landscape of foreign labour laws, taxation and payroll intricacies.

XPANDIUMS EOR services in Turkiye (Turkey), led by our team of experts, can help expand your business globally.

By partnering with XPANDIUM as your EOR in Turkiye (Turkey), we will seamlessly oversee the complete employment cycle. This means XPANDIUM acts as your employee’s legal employer in Turkiye, ensuring they are compliantly employed within the guidelines of the local labour laws.

XPANDIUM handles all your expansion administration, including payroll administration, distributing salary payments and filing employee-related tax returns.

Take the complexity out of hiring employees in Turkiye, and contact XPANDIUM for a tailored solution.

Payment in Turkiye

Turkiye’s strategic location and enticing incentives for foreign investors and businesses make it an attractive option for companies looking to expand globally.

For companies wishing to expand their operations to Turkiye, it is essential to understand the complexities of establishing employee payroll in Turkiye (Turkey). Navigating the payroll system can be challenging for enterprises, making collaborating with a payroll provider crucial.

By partnering with XPANDIUM, you gain a payroll provider in Turkiye who will meticulously manage every aspect of your company’s payroll journey. From onboarding to salary distribution, we ensure efficiency and cost-effectiveness while complying with all Turkish payroll regulations.

Navigating Turkiye’s payroll landscape can be demanding. It requires juggling responsibilities across teams while staying current with the ever-changing local payroll regulation. Here is what is included in XPANDIUM’s payroll services in Turkiye (Turkey):

Pre-Payroll processes – This will include establishing business policies encompassing leave and attendance, statutory compliance, salary components, pay schedules and collecting and organising employee information.
Payroll calculation – The data collected during the pre-payroll phase will be seamlessly integrated into your payroll system to ensure precise salary calculations.
Post-Payroll – This will include salary distribution, payroll accounting and ensuring payroll compliance.

Experience a seamless payroll journey in Turkiye with the expertise of XPANDIUM. Our specialised payroll services enhance your experience by ensuring compliance, efficiency and operational excellence. Discover the benefits of payroll management with XPANDIUM as your partner in Turkey.