Your Guide to Hiring Employees and Contractors in Turkey
Capital city
Ankara
Currency
Turkish Lira (₺, TRY)
Language(s)
Turkish
Ease of doing business
Very easy
Payroll frequency
Bi-Monthly/Monthly
Employer taxes
21.08%
Payroll
Payroll Cycle
In Turkey, the payroll frequency is monthly. Work between the first and last day of the month is typically paid on the last day of the month.
Minimum Wage Requirements
The gross minimum wage in Turkey is 6,471 TRY a month (5,500.35 TRY Net minimum wage).
Individual Income Tax
TRY 0 – 32,000
Tax rate: 15%
TRY 32,000 – 70,000
Tax rate: 20%
TRY 70,000 – 250,000
Tax rate: 27%
TRY 250,000 – 880,000
Tax rate: 35%
Above TRY 880,000
Tax rate: 40%
Employer Cost:
Short Term Insurance Branch Premium: 2%
Insurance & disability: 11%
General Health Insurance: 7.5%
Unemployment Insurance: 2%
Working Hours
Work Week
Monday to Friday.
Overtime Pay & Maximum Hours
If work time limits are passed, overtime compensation is compulsory. The maximum number of overtime hours is 48 hours per working week.
Overtime is due after working the maximum 45 hours in one week and is paid at the statutory rate of 150% of the employees’ regular pay if the overtime is worked on a weekday and 200% of the employees’ standard pay rate if the work is carried out on the weekend. Overtime can also be given as time off in lieu.
Employment Termination
The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination.
Notice period
In Turkey, the notice period is dependent on the employee’s length of service as below:
0 – 6 months of service
2 weeks’ notice
6 – 18 months of service
4 weeks’ notice
18 – 36 months of service
6 weeks’ notice
More than 36 months
8 weeks’ notice
Probation periods
Probationary periods should be written in contract and should not exceed two months. The probation period may be extended up to four months by collective agreement. Within the probation term the parties are free to terminate the employment agreement without having to observe the notice term and without having to pay compensation. The employee’s entitlement to salary and other rights for the days worked are reserved.