Turkey at a glance
Taxes in Turkey
Employer Contributions
| Contribution Type | Rate |
|---|---|
| Invalidity, Old Age and Death Insurance | 12% |
| General Health Insurance | 7.5% |
| Short-term Insurance Branch Premium | 2.25% |
| Unemployment Insurance | 2% |
| Total employer social security | 23.75% |
| Contribution Type | Rate |
|---|---|
| Invalidity, Old Age and Death Insurance | 12% |
| General Health Insurance | 7.5% |
| Short-term Insurance Branch Premium | 2.25% |
| Unemployment Insurance | 2% |
| Total employer social security | 23.75% |
| Contribution Type | Rate |
|---|---|
| Invalidity, Old Age and Death Insurance | 9% |
| General Health Insurance | 5% |
| Unemployment Insurance | 1% |
| Total employee social security | 15% |
| Annual Gross Income (TRY) | Tax Rate |
|---|---|
| Up to 190,000 | 15% |
| 190,001 – 400,000 | 20% |
| 400,001 – 1,500,000 | 27% |
| 1,500,001 – 5,300,000 | 35% |
| Over 5,300,000 | 40% |
Employer of Record in Turkey
What Is an Employer of Record?
An Employer of Record is the legal employer of your worker in Turkey. Remote& takes on all compliance obligations under Turkish Labour Law — employment contracts, Social Security Institution (SGK) registration, payroll, income tax withholding, and statutory benefits — enabling you to hire compliantly without establishing a Turkish legal entity.
How Remote& EOR Works
| Party | Role |
|---|---|
| Your Company | Recruits the worker, assigns tasks, manages performance and day-to-day work |
| Remote& | Signs the employment contract, registers with SGK, processes payroll, withholds income tax, manages statutory benefits |
| Employee | Fulfills their role for your company under a Turkish-law-compliant employment contract |
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"Hire a Mobile Developer in Istanbul — 120,000 TRY/month, starting September 1" Remi handles contract generation, SGK registration, payroll and tax configuration, and statutory leave enrollment — all in one conversation.
Benefits in Turkey
Social Security (SGK) Turkey's Social Security Institution provides retirement pensions, general health insurance, disability benefits, and short-term injury coverage. Both employer (23.75%) and employee (15%) contribute.
Paid Annual Leave Minimum annual leave is tenure-based: 14 working days (1–5 years), 20 working days (5–15 years), and 26 working days (over 15 years).
Severance Pay Employees who are dismissed (except for disciplinary causes) and who have completed at least 1 year of service are entitled to severance pay equivalent to 30 days of gross salary per year of service.
- Private health insurance
- Transportation allowance
- Meal provision at the office or meal vouchers
- Company phone and laptop
- Home office equipment support
- Fitness centre membership
- Birthday leave
- Company car (for senior roles)
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Annual Leave | 14 days (1–5 years); 20 days (5–15 years); 26 days (15+ years) |
| Sick Leave | First 2 days paid by employer; from day 3, Social Security pays up to the applicable limit |
| Maternity Leave | 16 weeks total (8 weeks pre-delivery, 8 weeks post-delivery) |
| Paternity Leave | 5 working days |
| Adoption Leave | 8 weeks |
Employment conditions
Working Hours
The standard working week is 45 hours. Overtime beyond this threshold must be compensated at a minimum of 150% of the regular hourly rate. Total overtime may not exceed 270 hours per year.
Health and Safety
Turkish labour law classifies workplaces as high, medium, or low risk based on workplace hazards and workforce size. The risk classification determines employer obligations, including the appointment of occupational safety experts, workplace doctors, training frequency, and reporting requirements.
Notice Periods
Statutory notice requirements by tenure:
- Less than 6 months: 2 weeks
- 6 months to 1.5 years: 4 weeks
- 1.5 to 3 years: 6 weeks
- Over 3 years: 8 weeks
Payment in lieu of notice is permissible.
Payments
End of employment in Turkey
Employment may end through mutual agreement, resignation, expiry of a fixed-term contract, or employer-initiated termination. For terminations due to poor performance, redundancy, or economic reasons, employers must follow prescribed procedural requirements to avoid disputes.
Dismissal without valid cause or without following proper procedure entitles the employee to compensation. Severance pay (1 month's gross salary per year of service) applies when the employer terminates an employee who has completed at least 1 year of service for reasons other than disciplinary misconduct.
Frequently asked questions
International companies typically choose between: running payroll from their home entity (not compliant for regular Turkish employment), contractor arrangements (appropriate only for genuine project-based work), establishing a Turkish legal entity, or using Remote& as Employer of Record. The EOR model gives you a compliant, SGK-registered employment structure without entity overhead.