Turkey is one of the most strategically positioned markets in the world. Straddling Europe and Asia, it combines a young, educated workforce with a rapidly digitizing economy and a GDP that consistently ranks among the top 20 globally. For US companies looking to tap into that potential, the question is rarely whether to hire in Turkey, it’s how to do it without getting buried in legal complexity.
Setting up a Turkish entity takes months, costs thousands of dollars, and locks you into ongoing administrative obligations. An Employer of Record service gives you a faster, leaner path: hire compliantly in Turkey in days, not months, without any local incorporation.
Turkey EOR at a glance
Here’s a quick-reference summary of what you need to know before hiring employees in Turkey.
Category | Turkey detail |
Capital | Ankara (business hub: Istanbul) |
Currency | Turkish lira (TRY) |
Official language | Turkish |
Governing labor law | Turkish Labour Law No. 4857 |
Contract types | Indefinite-term, fixed-term, part-time, remote |
Payroll cycle | Monthly |
Standard working hours | 45 hours per week |
Personal income tax | 15%–40% (progressive) |
Employer social security contribution | ~20.5%–22.5% of gross salary |
Employee social security contribution | ~14% of gross salary |
Minimum wage (2025) | TRY 26,005.50 per month gross |
Annual leave (standard) | 14 days per year (after one year of service) |
Maternity leave | 16 weeks (8 weeks pre-birth, 8 weeks post-birth) |
Public holidays | 14.5 days per year |
Probation period | Up to two months (extendable to four months by collective agreement) |
EOR benefit | Hire without a Turkish legal entity |
What is an Employer of Record in Turkey?
An Employer of Record is a third-party organization that becomes the legal employer of your workers in a foreign country — in this case, Turkey. While the EOR handles all the legal, administrative, and compliance obligations, your company retains full control of the employee’s day-to-day responsibilities, projects, and performance.
In practical terms, the EOR takes on responsibility for employment contracts, payroll processing, tax withholding, social security contributions to the Social Security Institution (SGK), statutory benefits, and compliant offboarding, all under Turkish Labour Law No. 4857.
How a Turkey EOR works
The process is straightforward. You identify a candidate you want to hire in Turkey. The EOR employs that person on your behalf under a locally compliant contract. You direct their work. The EOR manages the legal relationship, payroll cycle, tax filings, and all HR administration.
This arrangement lets you onboard international employees in Turkey without registering a Turkish company, opening a local bank account in Turkey, or navigating the Turkish Commercial Code on your own.
When should companies use an EOR in Turkey?
An EOR is the right choice when you want to:
- Hire one to five employees in Turkey before committing to a full subsidiary setup.
- Test the Turkish market quickly without long-term structural investment.
- Hire remote employees in Turkey who are already based there.
- Ensure immediate payroll and tax compliance without in-house local expertise.
- Avoid the cost and complexity of Turkish entity incorporation.
Why hire employees in Turkey through an EOR?
Turkey’s labor market is highly regulated and strongly employee-protective. Getting things wrong, from the wrong contract type to a missed SGK payment, can trigger fines, back payments, and legal disputes. An EOR removes that risk by acting as a compliant buffer between your business and Turkish employment law.
No local entity required
Registering a company in Turkey involves notarization, capital requirements, Ministry of Trade filings, and weeks of administrative work. With an EOR, none of that is necessary. You can hire in Turkey the moment you have a candidate ready.
Stay compliant with Turkish employment law
Turkish payroll involves monthly income tax withholding under a progressive rate structure (15%–40%), plus employer contributions to SGK that total approximately 20.5% of gross salary. An EOR calculates, withholds, and remits all of these obligations on time, every month, so you never have to worry about compliance gaps in your global payroll solution.
Hire at speed
With Multiplier’s Employer of Record services, you can generate a locally compliant Turkish employment contract and complete onboarding in under 48 hours. That means your new hire in Istanbul or Ankara can be productive almost immediately.
Test the Turkish market without long-term commitment
An EOR is ideal when you want to explore the Turkish market before committing to a permanent entity. You can hire a small team, validate your business model, and scale when ready, without the overhead of a Turkish subsidiary.
This also makes an EOR the right structure for hiring remote employees in Turkey. Whether your team member is in Istanbul, Ankara, or Izmir, an EOR ensures they’re employed compliantly and paid on time, regardless of whether you ever open a local office.
EOR vs PEO vs setting up a local entity in Turkey
Choosing the right employment structure depends on your goals, timeline, and scale of operations.
Model | Best for | Local entity required? | Compliance owner | Speed to hire |
EOR | Fast, compliant hiring without local incorporation | No | EOR | Days |
PEO | Companies with an existing Turkish entity that want outsourced HR | Usually yes | Shared (client + PEO) | Weeks |
Subsidiary | Long-term, large-scale operations in Turkey | Yes | Client company | Months |
Contractor | Genuine independent, project-based work | No | Contractor | Days |
Direct hiring | Companies with an established Turkish entity | Yes | Client company | Weeks |
For most US companies entering Turkey for the first time, an EOR is the most efficient path. You can always transition to a subsidiary structure later if your team grows significantly. Registering a company in Turkey guidance is also available if you decide to incorporate.
How to hire employees in Turkey through an EOR
Companies looking to scale quickly can simplify the process by following a structured approach to hiring employees in Turkey compliantly through an EOR.
Step 1: Choose a Turkey EOR provider
Look for a provider with an owned entity in Turkey, a strong track record of SGK compliance, and experience handling Turkish labour law nuances. Evaluate their onboarding speed, support model, and pricing transparency. See the checklist later in this guide for a full evaluation framework.
Step 2: Confirm the candidate’s right to work
Turkish citizens can start work immediately. Foreign nationals require a valid Turkish work permit and, in most cases, a Turkish work visa before employment can begin. Confirm right-to-work status before issuing a contract.
Step 3: Create a locally compliant employment contract
Under Turkish Labour Law, all employment contracts must be in writing when the engagement lasts longer than one year. The contract must specify role, remuneration, working hours, leave entitlements, notice periods, and the governing law. Your EOR can generate this automatically.
Step 4: Collect employee documents
The EOR will collect the employee’s Turkish ID or passport, tax identification number (TIN), SGK registration details, and bank account information for salary payments.
Step 5: Enroll statutory benefits and contributions
SGK enrollment happens at the point of hire. Your EOR registers the employee with SGK and begins calculating employer and employee contributions from the first payroll run.
Step 6: Run payroll in Turkey
Turkish payroll runs monthly. The EOR calculates gross pay, applies cumulative income tax withholding, deducts employee SGK contributions, and transfers net salary to the employee’s Turkish bank account.
Step 7: Manage ongoing compliance
Ongoing compliance includes monthly SGK declarations, income tax filings, annual leave tracking, and any mid-contract changes such as salary adjustments or role amendments. Your EOR handles all of this, with your team focused on managing the employee’s performance.
Employ top talent in Turkey through an EOR
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Employment laws and employee entitlements in Turkey
Turkey’s employment framework is governed by Labour Law No. 4857, which covers contracts, working time, leave entitlements, termination, and employee rights. Understanding these rules is essential before you hire your first employee in Turkey.
Employment contracts
Turkish Labour Law No. 4857 governs all aspects of the employment relationship, from contract formation through to termination. Understanding the key requirements helps you avoid costly mistakes.
Common labor contract types
Turkey recognizes several contract types under its labour framework:
- Indefinite-term contract: The most common type. No end date; can be full-time or part-time. Termination requires valid cause and notice periods.
- Fixed-term contract: Used for defined projects or seasonal work. Can only be renewed if there is an objective, justifiable reason. Unjustified renewals convert the contract to an indefinite term.
- Part-time contract: Working hours are substantially less than full-time. All statutory entitlements apply on a pro-rata basis.
- Remote work contract: Governed by Article 14 of Labour Law No. 4857. Must specify the location of remote work, equipment responsibilities, and data protection obligations.
Turkish-language contract requirements
There is no strict statutory requirement that employment contracts must be in Turkish when the parties both understand another language. In practice, however, contracts in Turkish are strongly recommended. Turkish courts interpret employment disputes under Turkish law, and a contract in a foreign language may create evidentiary complications.
Key contract clauses
A compliant Turkish employment contract must include:
- Job title and description
- Start date and duration (if fixed-term)
- Gross salary and payment frequency
- Working hours and location
- Annual leave entitlement
- Notice period
- Probationary period (if applicable)
- Governing law and jurisdiction
Non-compete and confidentiality clauses are enforceable in Turkey but must be limited in geographic scope, duration (generally up to two years), and subject matter to be valid.
Probationary periods
Under Article 15 of Turkish Labour Law, the maximum probationary period is two months. Collective bargaining agreements can extend this to four months. During probation, either party can terminate the contract without notice and without paying severance.
IP protection and confidentiality
Intellectual property created during employment belongs to the employer by default under Turkish intellectual property legislation. Confidentiality clauses should be included in the employment contract and can be supported by separate IP assignment agreements for technical roles.
Working hours and overtime
Turkey’s Labour Law sets clear limits on working time and provides strong protections for employees. Compliance with these rules is non-negotiable.
Standard working hours
The standard working week in Turkey is 45 hours, spread across a maximum of six days. Daily working time cannot exceed 11 hours. Employees must receive a minimum rest break of 30 minutes during shifts over four hours.
Overtime and rest periods
Overtime is any time worked beyond 45 hours per week. Employers must obtain written employee consent to require overtime. Maximum overtime is 270 hours per year. Overtime compensation is at least 1.5 times the hourly rate, or employees can opt for time off in lieu of overtime at 1.5 hours per overtime hour worked. Weekly rest must be at least 24 consecutive hours, typically on Sundays.
Health and safety
Turkey’s Occupational Health and Safety Law No. 6331 requires employers to conduct risk assessments, appoint occupational safety specialists, and provide regular health screenings depending on workplace risk category. Your EOR ensures that onboarding documentation meets these requirements.
Remote and hybrid work considerations
Remote work contracts are governed by Article 14 of Labour Law No. 4857. Employers must specify equipment provision, data protection responsibilities, and the employee’s right to disconnect. Remote workers are entitled to the same pay, leave, and benefits as on-site employees.
Leave entitlements
Turkey’s statutory leave entitlements are employee-friendly and must be provided from day one of employment. Here’s what every employer needs to know.
Annual leave
Annual leave entitlement under Turkish Labour Law is based on length of service:
Length of service | Minimum annual leave |
1 to 5 years | 14 days per year |
5 to 15 years | 20 days per year |
15 years and over | 26 days per year |
Employees aged under 18 or over 50 receive a minimum of 20 days per year regardless of tenure.
Personal leave
Employees are entitled to three days of paid leave for marriage, three days for the death of a first-degree relative, and one day for the childbirth of a spouse.
Sick leave
Turkey does not mandate employer-paid sick leave by statute beyond the first two days of illness. From the third day, SGK pays a daily sickness benefit equivalent to approximately two-thirds of the employee’s average daily earnings. In practice, many employers provide employer-paid sick leave as a supplementary benefit. Your EOR can advise on market practice.
Maternity and paternity leave
Maternity leave in Turkey is 16 weeks: eight weeks before the expected birth date and eight weeks after. For multiple births, the pre-birth period extends to ten weeks. During maternity leave, SGK pays a daily maternity benefit at two-thirds of the employee’s average daily earnings.
Paternity leave is five working days of paid leave, taken within two weeks of the child’s birth. Nursing mothers are entitled to 1.5 hours of daily nursing breaks until the child is one year old.
Public holidays
Turkey observes 14.5 public holidays per year, including national holidays and religious celebrations. Key dates include:
- New Year’s Day (1 January)
- National Sovereignty and Children’s Day (23 April)
- Labour and Solidarity Day (1 May)
- Atatürk Commemoration and Youth and Sports Day (19 May)
- Democracy and National Unity Day (15 July)
- Victory Day (30 August)
- Republic Day (29 October — 1.5 days)
- Eid al-Fitr (3 days)
- Eid al-Adha (4 days)
Religious holiday dates shift annually with the Islamic calendar.
Additional benefits and supplementary compensation
While not legally mandated for all sectors, many Turkish employers provide:
- Private health insurance (strongly expected by professional employees)
- Meal allowances (often provided via meal cards, which are partially tax-exempt)
- Transportation allowances
- Annual performance bonuses
Your EOR can help you benchmark and structure competitive benefits using Multiplier’s global benefits capabilities.
Employee rights and data protection
Turkey’s Personal Data Protection Law (KVKK), which came into force in 2016 and closely mirrors the EU’s GDPR, governs how employers collect, process, and store employee personal data. Key obligations include:
- Obtaining explicit written consent from employees before processing their personal data
- Informing employees of the purpose and scope of data collection
- Storing employee data securely and limiting access to authorized personnel
- Retaining data only as long as legally required and deleting it thereafter
Employers must also comply with anti-discrimination provisions under Turkish Labour Law, which prohibits differential treatment based on language, race, sex, political opinion, philosophical belief, religion, or similar grounds. Equal pay for equal work is a statutory requirement. Your EOR ensures all onboarding and HR processes comply with both KVKK and Turkish Labour Law’s anti-discrimination framework.
Payroll, taxes, and social security in Turkey
Turkey uses a monthly payroll cycle, and employers carry significant statutory obligations for each employee they hire. Your EOR handles all of this, but understanding the cost structure helps you budget accurately.
Payroll obligations
Salaries in Turkey are paid monthly, typically at the end of the month. Under Turkish Labour Law, salary payment must not be delayed by more than 20 days. Employers must also maintain accurate payroll records, file monthly SGK declarations with the Social Security Institution, and submit income tax returns to the Turkish Revenue Administration. Minimum wage is reviewed and updated annually by the government for 2025, it stands at TRY 26,005.50 gross per month.
Personal income tax withholding
Turkey uses a cumulative progressive income tax system. Employers withhold income tax monthly based on cumulative annual earnings. The 2024 tax brackets are approximately:
Annual taxable income | Tax rate |
Up to TRY 158,000 | 15% |
TRY 158,001–TRY 330,000 | 20% |
TRY 330,001–TRY 1,200,000 | 27% |
TRY 1,200,001–TRY 4,300,000 | 35% |
Over TRY 4,300,000 | 40% |
Social security contributions
Turkey’s social security system is administered by the SGK. Contributions are calculated as a percentage of the employee’s gross salary, subject to a ceiling updated annually.
Contribution type | Employer rate | Employee rate |
Pension and disability insurance | 11% | 9% |
Health insurance | 7.5% | 5% |
Unemployment insurance | 2% | 1% |
Total | ~20.5% | ~14% |
Note: Some employer contributions may be reduced by government incentives for qualifying sectors or regions. Verify current rates with a local advisor or your EOR.
Employer and employee deductions
In addition to SGK contributions, employers must withhold and remit income tax on a monthly cumulative basis. The employer also pays a stamp duty (damga vergisi) of 0.759% of gross salary on behalf of the employee, which is deducted from the payslip.
Payslips and payroll records
Employers are required to provide a detailed payslip each month. Payroll records must be kept for a minimum of ten years under Turkish law. Your EOR maintains all records and generates compliant payslips automatically.
Work permits and visas in Turkey
Foreign nationals who want to work in Turkey must obtain a work permit before starting employment. Understanding the authorization framework helps you plan hiring timelines accurately.
Hiring Turkish citizens
Turkish citizens do not require any work authorization. They can be hired immediately, and the EOR completes SGK registration and contract issuance as part of onboarding.
Hiring foreign workers in Turkey
Foreign nationals require a valid work permit to work in Turkey. Work permits are issued by the Ministry of Labour and Social Security and are tied to a specific employer. Common work permit types include:
- Definite-term work permit: Granted for up to one year initially, renewable for two-year periods. Valid only with the specific employer named in the application.
- Indefinite-term work permit: Available after eight years of legal continuous work in Turkey.
- Independent work permit: For self-employed foreign professionals meeting certain criteria.
- Turquoise Card: A permanent work and residency permit for highly qualified professionals, investors, and scientists making exceptional contributions. Equivalent to Turkey’s “green card.”
The quota rule: employers must demonstrate that at least five Turkish citizens are employed for every foreign national hired. This ratio affects EOR structure and feasibility for some clients.
Work permit application process
Applications are typically made through the Turkish consulate in the employee’s home country (visa + work permit) or in-country via e-Government portals. Processing times vary but typically range from four to eight weeks. An EOR with local expertise can guide you through the documentation requirements and support the application process.
How an EOR supports work authorization workflows
Your EOR manages the employer-side obligations in the work permit process, including the employer declaration, SGK pre-registration where required, and coordination with Ministry of Labour submissions through a global immigration support service. This significantly reduces the administrative burden on your HR team.
Contractors vs full-time employees in Turkey
The legal considerations around hiring contractors in Turkey are significant, especially when distinguishing contractors from full-time employees. Getting the classification wrong can be expensive.
Employee vs independent contractor classification
Turkish Labour Law does not define contractors as a distinct legal category separate from employees. Courts look at the substance of the relationship: if a worker receives regular direction, works set hours, uses employer equipment, and is economically dependent on one company, Turkish courts will typically reclassify them as an employee regardless of what the contract says.
Key indicators of employee status include: fixed working hours, direction and supervision by the company, provision of tools and equipment, exclusivity, and integration into the company’s organizational structure.
Misclassification risks
Misclassifying an employee as a contractor in Turkey exposes your company to:
- Back payment of unpaid SGK contributions (employer and employee portions) plus interest
- Payment of all accrued annual leave and statutory entitlements
- Potential severance pay claims if the “contractor” relationship is treated as employment termination
- Administrative fines from the Ministry of Labour
When to use EOR vs contractor management
Use an EOR when the worker will be integrated into your team and work under your supervision on a sustained basis. Use a Contractor of Record model when the worker is genuinely independent, working across multiple clients, and delivering project-based outputs with autonomy.
Businesses managing large freelance teams can also centralize onboarding, payments, and compliance through a contractor management system.
If you’re not sure which classification fits, Multiplier’s compliance team can assess the engagement and recommend the right structure.
Probation, termination, and severance in Turkey
Turkey’s termination rules are among the more employee-protective in the region. Understanding your obligations before you hire helps you plan and budget correctly.
Probationary period termination
During the probationary period (up to two months), either party can terminate without notice and without any severance obligation.
Termination with just cause
Turkish Labour Law Article 25 allows immediate termination without notice or severance in cases of serious misconduct, dishonesty, or conduct that makes the employment relationship untenable. Documentation of the misconduct is essential, and the employer must exercise this right within six working days of becoming aware of the cause.
Termination with notice
For terminations without just cause, notice periods under Turkish Labour Law are:
Length of service | Minimum notice period |
Less than 6 months | 2 weeks |
6 months to 1.5 years | 4 weeks |
1.5 years to 3 years | 6 weeks |
Over 3 years | 8 weeks |
The employer can pay salary in lieu of notice instead of requiring the employee to work through the notice period.
Severance pay
Employees who have worked for one year or more and are terminated without just cause (or resign for statutory reasons) are entitled to severance pay of 30 days’ gross salary per year of service. The calculation is based on the most recent gross salary, subject to an annual ceiling updated by the government.
Severance is not payable when an employee resigns voluntarily (except for specific statutory reasons such as military service, retirement, or marriage in certain circumstances).
Final payroll and offboarding
The final paycheck must include all accrued and unused annual leave paid out at the employee’s daily rate. SGK deregistration must be completed by the end of the month in which employment ends. Your EOR handles the full offboarding sequence, ensuring compliant documentation and timely payments.
How much does an Employer of Record in Turkey cost?
Turkey EOR costs have several components. Understanding them helps you compare providers accurately and build a realistic budget.
- EOR service fee: Most providers charge a flat monthly fee per employee or a percentage of salary. This covers contract management, payroll processing, compliance monitoring, and HR support.
- Gross salary: The employee’s agreed compensation.
- Employer statutory contributions: Approximately 20.5% of gross salary in SGK employer contributions.
- Benefits costs: Any supplementary benefits such as private health insurance or meal allowances.
- Onboarding and offboarding fees: Some providers charge one-time fees for these services.
For companies hiring one to five employees, an EOR is almost always more cost-effective than setting up a subsidiary in Turkey, which involves notarization costs, minimum capital requirements, ongoing accounting, and annual regulatory filings. For a detailed estimate, use Multiplier’s employee cost calculator or explore EOR pricing.
How to choose the best EOR provider in Turkey
Comparing the top EOR companies carefully helps businesses evaluate compliance expertise, onboarding speed, and local support quality.
Use this checklist when evaluating your options.
- Owned entity
- Does the provider have its own legal entity in Turkey, or does it rely on a third-party partner?
- Owned entities reduce risk and typically provide faster onboarding.
- SGK compliance track record
- Can the provider demonstrate a history of accurate, on-time SGK filings and tax remittances?
- Contract generation speed
- How quickly can they generate a locally compliant Turkish employment contract?
- Work permit support
- Can they support foreign national work permit applications?
- Support model
- Is support available in your time zone and in English?
- Is there a dedicated account manager?
- Offboarding experience
- Has the provider handled Turkish terminations, including severance calculations and SGK deregistration?
- Data protection
- Is the provider KVKK-compliant for employee data handling in Turkey?
- Pricing transparency
- Are all fees clearly disclosed, including statutory employer costs?
- Platform capabilities
- Does the platform let you manage contracts, payroll, benefits, and expenses in one place?
Why choose Multiplier as your Turkey EOR?
Multiplier combines owned-entity coverage, an automated compliance-first platform, and human-first support to make hiring in Turkey genuinely effortless.
Here’s what sets Multiplier apart:
- Owned entity in Turkey: Multiplier operates through its own Turkish legal entity, so your employees are employed directly, with no third-party partners in the chain.
- Compliant contracts in minutes: Generate locally compliant Turkish employment contracts and complete onboarding in under 48 hours.
- Full SGK and tax management: Multiplier calculates, withholds, and remits all social security contributions and income tax on time, every month.
- Tailored benefits: Deliver competitive benefits, from private health insurance to meal allowances, benchmarked against Turkish market standards.
- Global compliance platform: Manage Turkey alongside every other country in your global workforce from one centralized dashboard, with built-in global compliance tools.
- 24/7 human-first support: Expert local advisors are available whenever you have questions, not just AI chat support.
- Proven at scale: Rated #1 most implementable EOR on G2 for three consecutive quarters. Trusted by 2,000+ customers including Uber, Amazon, PwC, and Rare Beauty. Rated 4.7/5 across 1,200+ reviews on G2 and Trustpilot.
Many international employers also conduct background checks in Turkey before onboarding employees into sensitive or customer-facing roles.
Ready to build your Turkish team? Book a demo today and see how quickly Multiplier can get your first hire live.
FAQs
What is an Employer of Record in Turkey?
An Employer of Record in Turkey legally employs workers on your behalf, managing payroll, taxes, contracts, benefits, and labor law compliance locally.
Do I need a legal entity to hire employees in Turkey?
No. An EOR allows companies to hire full-time employees in Turkey legally without establishing a local subsidiary or registered Turkish entity.
How does an EOR work in Turkey?
An EOR in Turkey employs the worker through its local infrastructure and manages onboarding, payroll, benefits, and employment compliance. Your company manages the employee’s day-to-day work while avoiding the need to set up a Turkish entity first.
How long does it take to hire through an EOR in Turkey?
Hiring through an EOR in Turkey typically takes a few days, depending on contract preparation, onboarding documentation, and employee registration requirements.
What payroll compliance requirements apply in Turkey?
Employers in Turkey must process payroll accurately, withhold income tax, calculate SGK contributions, maintain payroll records, and meet monthly reporting obligations.
Who handles taxes and social security contributions for EOR employees in Turkey?
The EOR manages employee income tax withholdings, employer obligations, and mandatory SGK social security contributions with local authorities on your behalf.
Do employees need a Turkish bank account for payroll?
Most employees in Turkey receive salaries through local bank transfers, making a Turkish bank account generally necessary for compliant payroll processing.
What type of employment contract is used for EOR employees in Turkey?
EOR employees in Turkey typically receive locally compliant written employment contracts outlining compensation, working hours, benefits, notice periods, and termination conditions.
Is there a probation period for employees in Turkey?
Yes. Turkish employment contracts commonly include probation periods of up to two months, extendable to four months through collective agreements.
Can an EOR help with work permits in Turkey?
Yes. Many EOR providers support work permit sponsorship, immigration documentation, and compliance processes for foreign employees relocating to Turkey legally.
