The beautiful country where the East meets the West, Turkey, is becoming an increasingly attractive proposition for American employers looking to access a young, educated, and cost-competitive workforce. With a population of over 85 million, Turkey offers a deep talent pool across industries ranging from technology and manufacturing to finance and logistics. The country's strategic geography, expanding digital infrastructure, and relatively favorable labor costs make it a compelling destination for global expansion.
However, hiring in Turkey comes with important legal obligations that employers must understand upfront. Turkish employment is primarily governed by Labor Law No. 4857. This guide covers key facts, minimum wage, taxes, benefits, leave entitlements, hiring and onboarding steps, and work permits in Turkey for foreign nationals.
Key Facts About Employment in Turkey
Information Category | Details |
Minimum Wage in Turkey | TRY 33,030 per month. |
Standard Workweek | 45 hours per week. |
Payroll Frequency | Monthly processing. |
Fiscal Year | January 1 – December 31. |
Main Employment Laws | Labor Law No. 4857 (2003). |
Employment Contracts in Turkey
Under the employment law in Turkey, employment contracts of one year or more must be in writing. Turkish labor law recognizes several contract types:
- Indefinite Contract: This is the most common contract type, which is used for long-term, ongoing employment relationships and provides the greatest statutory protections for employees.
- Fixed-Term Contract: This is the contract type used for a specific project or period. It must be based on objective conditions. If the contract is renewed repeatedly, it may cause the contract to be treated as indefinite.
- Part-Time Contract: This contract type is for employees working fewer than two-thirds of the standard weekly hours.
- Temporary / Agency Work: This contract type is permitted for limited circumstances through licensed private employment agencies.
Every employment contract type in Turkey must include the following mandatory details:
- Job title and description
- Place and location of work
- Gross salary and payment schedule
- Working hours and overtime terms
- Probation period
- Notice period
- Annual leave entitlement
- Applicable collective bargaining agreements, if any.
Payroll, Taxes, and Social Security in Turkey
Payroll in Turkey involves several mandatory contribution streams. Employers are responsible for calculating, withholding, and remitting all required taxes and social security (SGK) premiums. The table below summarizes the key figures:
Employer Payroll Contribution
Contribution Type | Rate |
Old-age, disability, and death insurance | 12% |
General health insurance | 7.5% |
Short-term insurance branches | 2.25% |
Unemployment insurance | 2% |
SGK (Social Security Institution): It covers health insurance, retirement, disability, unemployment, and accident protection for all registered employees.
Employee Payroll Contribution
Contribution Type | Employee Rate |
Old-age, disability, and death insurance | 9% |
General health insurance | 5% |
Unemployment insurance | 1% |
Income Tax Bracket
Income tax is progressive and withheld monthly by the employer under the Turkish Income Tax Law. Rates range from 15% to 40%, depending on annual gross income.
Category | Rate |
Up to TRY 190,000 | 15% |
TRY 190,001 – TRY 400,000 | 20% |
TRY 400,001 – TRY 1,500,000 | 27% |
TRY 1,500,001 – TRY 5,300,000 | 35% |
Above TRY 5,300,000 | 40% |
Employees earning at the minimum wage level are fully exempt from income tax and stamp tax. Employers in manufacturing may benefit from a 5-point SGK premium discount under Law No. 7566 (effective Jan 1, 2026).
Turkey has bilateral social security agreements with most EU countries, the UK, and South Korea; foreign nationals from these countries may be exempt from Turkish SGK for a set period.
Compensation & Benefits in Turkey
Beyond the minimum wage mandate, employers operating in Turkey are expected to offer a competitive package that typically includes several common allowances and benefits:
Benefit Type | Description |
Health Insurance | Covered via mandatory SGK contributions; access to public hospitals and clinics |
Meal Allowance | Very common in practice; income-exempt threshold starts at net TRY 158/day |
Transportation Allowance | Widely offered; exemptions apply up to statutory thresholds |
13th/14th Month Pay | Not legally required; offered voluntarily by some employers |
Annual Bonus | Common in the private sector; no statutory requirement |
Private Health Insurance | Increasingly offered as a competitive benefit, especially in tech and finance |
Disability/Life Insurance | SGK provides basic coverage; employers may supplement with private policies |
Working Hours and Overtime in Turkey
Turkey's Labor Law No. 4857 strictly regulates working hours. The following table outlines key rules employers must follow:
Item | Rule |
Standard Workweek | 45 hours per week |
Daily Limit | Maximum 11 hours per day |
Overtime Cap | 270 hours per calendar year |
Overtime Rate | 150% of regular pay for weekday overtime; 200% on weekends |
Time Off in Lieu | 1.5 hours of leave for each hour of overtime; must be used within 6 months |
Leave and Statutory Time Off in Turkey
Turkish law provides employees with a comprehensive set of statutory leave rights. All leave entitlements below are mandatory minimums under the employment law in Turkey:
Leave Type | Entitlement |
Paid Annual Leave (1–5 yrs) | 14 days (minimum after 1 full year of service) |
Paid Annual Leave (5–15 yrs) | 20 days |
Paid Annual Leave (15+ yrs) | 26 days |
Paid Annual leave who are under 18 years or over 50 years | Minimum 20 days regardless of tenure |
Public Holidays | 14 paid public holidays per year (2025/2026) |
Sick Leave | SGK covers from day 3; the first 2 days are often paid by the employer in practice; the employer may terminate after 6 weeks beyond the notice period |
Maternity Leave | 16 weeks paid (8 pre-birth, 8 post-birth); 24 weeks; paid via SGK at ~66.7% of average daily wage |
Paternity Leave | 5 days fully paid by employer (15 days under 2025 updates for some categories); begins day of birth |
Adoption Leave | 8 weeks paid for children under age 3; option for 6 months unpaid leave afterward |
Marriage Leave | 3 days paid |
Military Leave | Up to 90 days paid per year for statutory obligations |
Turkey has 15.5 days of national holiday/general holiday entitlement:
- New Year’s Day
- National Sovereignty and Children’s Day (April 23)
- Labor and Solidarity Day
- Commemoration of Atatürk, Youth and Sports Day (May 19)
- Democracy and National Unity Day (July 15)
- Victory Day (August 30)
- Republic Day (October 29, 1.5 days, starts October 28 at 13:00)
- Ramadan Bayram / Eid al-Fitr (3.5 days)
- Kurban Bayram / Eid al-Adha (4.5 days)
Hiring and Onboarding Process in Turkey
The legal process for hiring in Turkey requires employers to follow a defined sequence. Here are the key steps:
- Draft a compliant employment contract: Include all mandatory elements per Labor Law No. 4857. For foreign hires, confirm work permit eligibility before issuing an offer.
- Register the business with SGK: Before hiring any employee, the employer's workplace must be registered with the Social Security Institution (SGK). This must be completed before the first hire starts work.
- Register each employee with SGK: Every new employee must be registered at least one day before their start date. Failure to do so results in administrative fines.
- Enroll in e-Ledger and payroll declarations: Monthly payroll filings, including income tax and SGK premium declarations, must be submitted electronically through official Turkish government systems.
- Collect required employee documents: National ID or passport, residence permit (for foreign nationals), tax identification number, educational certificates, and completed new-hire forms.
- Work permits in Turkey (foreign hires): Foreign nationals must hold a valid work permit, which also functions as a residence permit. Applications are submitted by the employer online via the Ministry of Labor and Social Security. First-time permits are typically valid for one year, with renewals of 2–3 years. Employers must register foreign employees with SGK within 30 days of work permit issuance.
- Complete onboarding: Provide mandatory occupational health and safety training as required by Law No. 6331, issue payslips, and ensure the employee is added to the monthly payroll cycle.
Termination & Notice Periods in Turkey
Terminating an employee in Turkey requires adherence to specific legal requirements. Wrongful dismissal carries significant penalties, including reinstatement orders or substantial compensation.
- Notice Periods (for open-ended contracts based on tenure):
- Less than 6 months' service → 2 weeks' notice
- 6 to 18 months' service → 4 weeks' notice
- 18 to 36 months' service → 6 weeks' notice
- More than 36 months' service → 8 weeks' notice
- Valid Grounds for Dismissal: Turkish law permits termination for reasons of employee misconduct or immoral behavior, incapacity due to health (illness lasting over 6 weeks beyond the notice period), operational/economic restructuring, or repeated unauthorized absences.
- Written Notice Required: All terminations for cause must be in writing and clearly state the reason for dismissal.
- Severance Pay: Employees who have worked for at least one full year and are not dismissed for misconduct are entitled to 30 days of gross salary per year of service.
- Unfair Dismissal: Employees who work for employers with 30 or more staff and have at least 6 months of tenure can challenge unjust termination through mandatory mediation, and courts may order reinstatement or up to 8 months of additional compensation.
- During Probation: Either party may terminate without notice or severance pay.
Useful Resources
Disclaimer: This article is provided for informational purposes only and should not be relied on as legal advice or used as a substitute for advice from qualified legal counsel.
