Guide to employment, payroll and benefits in

Turkey

Rivermate offers complete payroll, benefits and compliance services for

Turkey

01. Overview

Last updated: 

August 19, 2021

Currency
Turkish Lira
Capital
Ankara
Ease of doing business
76.8
Language
Turkish
Population
84339067
GDP growth
7.44%

02. Grow your team in

Turkey

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Turkey

, particularly if you don't have established local relationships. You can hire employees in

Turkey

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Turkey is a country in Western Asia and Southeast Europe, formally known as the Republic of Turkey. It is bordered on the northwest by Greece and Bulgaria, on the north by the Black Sea, on the northeast by Georgia, on the east by Armenia, Azerbaijan, and Iran, on the southeast by Iraq, on the south by Syria and the Mediterranean Sea, and on the west by the Aegean Sea. The financial capital is Ankara, while Istanbul is the largest city. Present-day Turkey was home to significant Neolithic sites like Göbekli Tepe, as well as ancient civilisations like the Hattians and Anatolian peoples. Turks make up the vast majority of the population, while Kurds make up the largest minority. Hellenization began in the region during Alexander the Great's reign and lasted until the Byzantine period. The Seljuk Turks began migrating in the 11th century, and the Sultanate of Rum ruled Anatolia until it was disintegrated into small Turkish principalities by the Mongol invasion in 1243. The Ottomans began uniting principalities and conquering the Balkans in the late 13th century, and Turkification of Anatolia increased during the Ottoman era. Ottoman expansion began under Selim I after Mehmed II invaded Constantinople in 1453, and the Ottoman Empire became a global force during Suleiman the Magnificent's reign. The empire's influence began to wane in the late 18th century, as territories and wars were lost one by one. Mahmud II began a wave of modernisation in the early nineteenth century in order to strengthen his sagging empire. The Three Pashas, who were primarily responsible for the Empire's entry into World War I in 1914, took control of the country after the 1913 coup d'état. The Ottoman government committed genocide against its Armenian, Assyrian, and Pontic Greek subjects during World War I. The Ottoman Empire was partitioned after the Ottomans and other Central Powers lost the war. The Sultanate was abolished on November 1, 1922, the Treaty of Lausanne was signed on July 24, 1923, and the Republic was proclamated on October 29, 1923, following the Turkish War of Independence against the invading Allied Powers. Turkey became a democratic, unitary, and parliamentary republic thanks to reforms introduced by the country's first president, Mustafa Kemal Atatürk, which was later replaced by a presidential regime following a referendum in 2017. Since then, President Recep Tayyip Erdoan and his AKP party have been characterized as populist, nationalist, and authoritarian in Turkey. Turkey is a regional force and a newly developed nation with a geopolitically strategic place. Its economy, which is rated as developing and growth-leading, is the world's twentieth largest in terms of nominal GDP and the eleventh largest in terms of purchasing power parity.

04. Public holidays

05. Types of leave

Paid time off

With seniority, paid time off increases:For people with 1 to 5 years of service, the period is 14 days.20 days for those who have served for 6-14 years.For individuals who have served for 15 years or more, the time limit is 26 days.Employees above the age of 50 are entitled to an automatic 20-day vacation. Those who labor underground receive an additional four days of service.

Public holidays

Turkey recognizes fourteen public holidays.

Sick days

The company is not required to pay the employee's wage while he or she is on sick leave. The employee will be paid by Social Security after three days of sick absence. In actuality, many firms provide ordinary wages for the first two days of sick leave (which are not covered by the Social Security system) or even the full time of sick leave (and get partial refund when paid by SS). The employer has the right to terminate the employee's employment after 6 weeks of sick leave.

Maternity leave

Working women have the right to up to 16 weeks of paid maternity leave. Prior to the birth of their kid, they may take up to 8 weeks of this leave. At least three weeks must pass before the deadline. The total maternity leave will be 18 weeks if the baby is born prematurely or in multiples. Payment for maternity leave is provided by social security, based on the employee's regular payments.

Paternity leave

Paternity leave is granted to the father for five days.The employee is paid a regular pay while on paternity leave, which is funded by the business.

Parental leave

Marriage leave– 3 days, subject to presenting an official approval of marriage date.Bereavement leave– 3 days, with respect to losing a close relative such as parent/ child.

Other leave

06. Employment termination

Termination process

Employers with more than 30 employees in Turkey have the legal right to fire employees who have worked for them for more than six months for a legally valid reason. Employees must receive a written termination notice that details the basis for the termination. The notice period is two to eight weeks, depending on the duration of employment of the employee.


For collective redundancies and disciplinary dismissals, special rules apply. Employees with at least one year of service are often entitled to severance pay. Severance pay is equivalent to one month's salary for each year of service. Employees also receive money for unused leave and other benefits, allowances, and premiums received throughout their employment.

Notice period

Seniority dictates the notice period. The notice period is two weeks for employees with up to six months of seniority. If the seniority is between six and eighteen months, a four-week notice period is required. If the employee has between eighteen and thirty-six months of seniority, the employee will be notified six weeks in advance. Finally, if an employee has worked for the company for more than thirty-six months, they are entitled to a notice period of eight weeks.

Severance pay

Employees who have worked for more than one year and have been unfairly dismissed (or have resigned for just cause) are generally entitled to severance pay. The maximum amount of such payment varies according to the specific salary and may not exceed 6,730.15 Turkish lira per year (in 2020), multiplied by the number of years worked for the employer.

Probation period

Probation is limited to two months.

07. Working hours

General

Five days per week is the standard workweek, with employees working a maximum of 45 hours per week. Although there is no set schedule for working hours throughout the week, employees are limited to 11 hours in a single day. Underground employment, such as mining, is restricted to six hours per day and 36 hours per week.

Overtime

Overtime is defined as time worked in excess of these limits and is limited to 270 hours per year with the employee's consent. Overtime is compensated at a rate of 150 percent of the regular salary. Weekend hours are paid at a rate of 200 percent.

08. Minimum wage

General

Turkey sets a national minimum wage of 440.29 EUR per month.

09. Employee benefits

General

Turkey's healthcare system is a hybrid of mandatory health insurance and private medical insurance. The Ministry of Health is in charge of managing all health and social welfare operations, and all people are entitled to social security under the Turkish Constitution. The public healthcare system is funded through public health insurance, which is taken automatically from workers' paychecks.

Some companies provide food vouchers or cash allowances, as well as corporate vehicles and/or private healthcare.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Turkey

to hire a team takes time, money, and effort. The labor law in

Turkey

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Turkey

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Turkey

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Turkey

via our Employer of Record / PEO solution.

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