Turkey: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Turkey.

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Ever wondered what it's like to move from continent to continent just by crossing a bridge? Visit Turkey, and you'll find out! Turkey spans across two continents, Asia and Europe, though only 3% of Turkey is in Europe. A short walk across the Galata Bridge could land you on a new continent. Use this opportunity to expand your business to two continents while processing payroll in just one country. Your hunt for the best global payroll providers to aid you is over; Neeyamo assists organizations worldwide with onboarding and managing employees in Turkey – processing payroll, managing local compliance requirements, benefits, and more.

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Global Payroll

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats




Turkish Lira (TRY)

Official Language


Fiscal Year

1 January - 31 December

Date Format


Country Calling Code


Other Languages

Kurdish, Zaza, Circassian, Laz, Arabic, Various others

Time Zone

UTC + 03:00

Global Payroll


What is Payroll?

Payroll means the list of compensation to be paid to employees of a company or organization for a set period or date.

What is Global Payroll?

Global payroll is the management of the entire payroll function of an organization across all countries of operation. Organizations use a single solution capable of doing this from one central location.

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can worsen things. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll.  Neeyamos global payroll services ease the process for companies looking to outsource their global payroll requirements and aid them in maneuvering the tricky payroll system in Turkey.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

Employees have to make the following payroll contributions:

  • 9.00% - Pension & Disability
  • 5.00% - General Health Insurance
  • 1.00% - Unemployment Insurance
  • 15.00% - Total Employee Cost

The income tax bracket is as follows:

0-70,000 TRY 15.00%
70,001 TRY - 150,000 TRY 20.00%
150,001 TRY - 550,000 TRY 27.00%
550,001 TRY - 1.900,000 TRY 35.00%
1,900,001 TRY and above 40.00%

Employer Taxes

Employers make the following payroll contributions:

  • 2.00% - Short-Term Insurance Branch Premium
  • 11.00% - Pension & Disability
  • 7.50% - General Health Insurance
  • 2.00% - Unemployment Insurance
  • 22.50% - Total Employment Cost

Payroll Cycle


Undoubtedly, payroll is a critical process for any organization. The pay cycle refers to the period an organization pays its employees, which can vary depending on the pay frequency that the organization chooses to adopt.


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.

13th Month Cycle

Turkey has no legal requirement for 13th and 14th-month payments.

Global Work


An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a locally registered entity and a local bank account before making a job offer to an international hire.

An Employer of record - payroll services provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Turkey for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

Effective January 1, 2024, Turkey has significantly increased its monthly minimum wage by 49% to 17,002 Turkish lira (approximately $578.31 equivalent per month).


Hours worked over 45 a week are overtime and 150% of a regular salary. Hours worked during the weekend are paid at 200%.

Employers must begin to pay overtime for work above 45 hours per week. Overtime must be compensated at 50% above regular wages. Total overtime may not exceed 270 hours in a calendar year.

Employees may receive leave in lieu of pay for overtime at a rate of 1.5 hours for every hour of overtime. This leave must be taken within six months of the date on which overtime work was performed. Work performed on holidays must be paid at double wages.

According to Article 8 of the Regulation on Overtime Work Regarding Labor Law, part-time employees cannot work overtime.

Data Retention Policy

Tax records must generally be kept for a minimum of five years. Employers generally must keep workplace records and documents relating to SSI contributions for ten years, beginning the year following the year the taxes were paid.

Employers must keep a personnel file for every employee documenting the employment relationship.

The statutory limitation on wage claims is five years.

Employers must submit the list of employees working night shifts to the relevant regional directorate of labor along with their health certifications for nighttime employees. This must be delivered before employees begin work and periodically.

Withholding tax incentives for technology development zone

With effect from April 1, 2023:

  • The remote working time rate for IT/informatics personnel will be applied as 100%.
  • The remote working time rate for personnel other than these will be applied as 75%.

Hiring and Onboarding Requirements


According to Article 10 of the Constitution, no privilege is granted to any individual, family, group, or class, and there is a general rule of freedom to contract in labor relations. However, employers must enter into contracts with certain people (e.g., they must employ a minimum number of people with disabilities).


The following documents are mandated during onboarding:

  • ISKUR registration
  • Residence Certificate (Please provide the Turkish name of the Residence Certificate)-İkametgah Belgesi
  • Turkish Identity Card contains National Identification Number (Turkish: Türkiye Cumhuriyeti Kimlik Kartı)
  • Certificate of employment issued by the employee's former workplace
  • IBAN Number
  • Health Report
  • Blood Group Card
  • Two photos (should have been taken in the last six months)
  • Marital/Family Information Document (This should be in both Turkish and English)- Aile Durumu Bildirimi
  • Graduation Certificate
  • All Employment Contract (fixed-term employment contract, part-time employment contract, work on-call employment contract, temporary employment contract)

The following documents are optional:

  • Offer Letter
  • Criminal/Police Record
  • Military service status document


According to Article 15 of Labor Law, it is unnecessary to include a probation period in the employment contract. However, if the parties agree to have a probation clause in the employment contract, the duration of the trial term shall not exceed two months. However, a collective labor agreement may extend this period to four months. The employment contract must be written if an employer wants to put a probation period since a clause is sought for this.

During the probation period, parties can terminate the employment contract without giving notice to the other party or paying compensation without providing a reason. However, the employee's entitlement to wages and other rights for the days worked is reserved.


Paid Leave

There are 14 public holidays per year.

Employers must provide all employees with nine mandatory paid public holidays.

The mandatory public holidays specified in the Labor Law are as follows:

  • January 1: New Year's Day (Yılbaşı).
  • April 20 to April 23: Ramadan
  • April 23: National Sovereignty and Children's Day (Ulusal Egemenlik ve Çocuk Bayramı).
  • May 1: Labor and Solidarity Day (Emek ve Dayanişma Günü).
  • May 19: Commemoration of Ataturk, Youth and Sports Day (Atatürk'ü Anma Gençlik ve Spor Bayrami).
  • June 27 to July 1: Sacrifice Feast Holiday
  • July 15: Democracy and National Unity Day (Demokrasi ve Milli Birlik Günü).
  • August 30: Victory Day (Zafer Bayramı).
  • October 28, starting at 1 PM, and October 29: Republic Day (Cumhuriyet Bayramı), with October 29 as the formal holiday, and paid leave also granted beginning at 1 PM the day before.

The specific Gregorian Calendar dates of the Ramadan Feast and Feast of Sacrifice are subject to annual variation because the Islamic Calendar is a lunar calendar that does not directly align with the Gregorian Calendar.

Sick Leave

The labor code states that employees may be granted a maximum of one week of sick leave, which a medical certificate must support. Employers are not required to provide payment for this leave. However, employees may receive state-funded sick pay after three days of absence due to illness.

Maternity Leave

Working mothers are entitled to up to 16 weeks of maternity leave at full pay. Up to 8 weeks out of this leave may be used before their child's birth. At least three weeks must be taken before the due date. In the case of premature or multiple births, the total maternity leave will be 18 weeks.

Payment during maternity leave comes from social security, according to the regular contributions of the employee.

After completing a total of sixteen weeks (eighteen weeks in multiple pregnancies) leave before and after the birth, up to six months of unpaid leave can be used if requested.

Until the child is one year old, a mother is entitled to one and a half hours of breastfeeding leave per day to tend to the baby.

Paternity Leave

The father is entitled to 5 days of paternity leave. During paternity leave, the employee receives a regular salary paid by the employer.

Other Leave

Marriage Leave

Three days, subject to presenting an official approval of the marriage date.

In the event of a marriage, as per article 46 (b) of the Turkish labor law, employees are entitled to (3) three days of paid leave.

Bereavement Leave

Three days for losing a close relative such as a parent/ child.

As per article 46 (b) of Turkish labor law, employees are entitled to (3) three days of paid leave in the event of the death of the employee's mother, father, spouse, brother or sister, and child.

Leave for Seeking a New Job

As per Article 27, during the notice period, the employee is entitled to use no less than two hours of time off daily within working hours to seek a new job without any deduction from his wage. If the employee requests, such hours may be added together and taken simultaneously.

But if the employee wishes to take these hours at once, they must do so on the days immediately preceding the day his employment ceases and must inform the employer in advance.

If the employer makes the employee work during the time to be allowed to seek a new job, the employer must pay the wages of this time with a hundred percent increase, in addition to the wage that he will receive without compensation.

Nursing Leave

Article 74 of the Turkish labor law also regulates the nursing leaves of female employees. All female employees are allowed a total of one and half hours of nursing leave daily from their return to work until their infant turns (1) one year old. Nursing leave is considered within the daily working time. The employee decides when and how many parts she will use for the nursing leave.

As an important note, this leave must be used daily. A female employee cannot use this leave collectively, like at the end of the month or week.



Business, personal, or employee wrongdoing is grounds for termination under a fixed-term contract. The termination notice must be in writing, including the cause for the termination, and be delivered in person to the employee.

Notice Period

The minimum notice period is two weeks and gradually extends to eight weeks. The employer can immediately terminate the employment contract without waiting for any notice period by paying the fee for the termination notification period in advance.

In Turkey, the notice period is dependent on the employee's length of service as below:

  • 0 – 6 months of service with two weeks' notice
  • 6 – 18 months of service with four weeks' notice
  • 18 – 36 months of service with six weeks' notice
  • More than 36 months with eight weeks' notice

Termination of the indefinite term: Employees must serve a minimum notice period according to the length of their employment.

Termination of fixed-term employment contract: No notice period is stimulated in the fixed-term contract and cannot be excepted for a valid and just reason specified in the law.

Severance Pay

Generally, employees who worked more than one year and were unfairly dismissed (or resigned due to just cause) are entitled to severance pay.

The upper limit for severance payment is 19,982.83 TL, valid between January 1, 2023, to June 30, 2023.

The termination date must be notified to the other party before ending indefinite-term employment contracts.

  1. Two weeks after the notification of the other party, for the worker who has worked less than six months
  2. Four weeks after the notification of the other party, for the worker who has worked between six months and one and a half years
  3. Six weeks after the notification of the other party, for the worker who has worked from one and a half to three years
  4. Eight weeks after the notification is made for workers who have worked more than three years

These periods are set as “minimum” by law, and they may be increased by signing contracts between the employee and the employer or by union agreements.

The periods are applicable to the employer and the employee. The cap for severance payment is 7,638.96 TL/year. There is also an SGK cap of 26,831.40 TL/month if you need to mention it in SGK (SSI) slide.



All foreign workers wishing to work in Turkey must obtain a work permit, work visa, and residence permit before beginning work.

There are four versions of work permits:

  • ordinary work permits for a specific workplace or economic sector valid for one year and renewable for a second and third year;
  • independent work permits of defined duration for those working with multiple entities;
  • permanent work permits available to foreign holders of a long-term residence permit or another work permit for at least eight years; and
  • permanent work permit to recognized academics, investors, and highly trained professionals.

Holders of permanent work permits will be granted rights similar to those of Turkish citizens, except for the rights to vote, be elected, or work as a civil servant or the duty to perform military service.

Independent work permits are granted to foreign workers who have resided in Turkey for an uninterrupted period of five years.

To apply for a work permit, employers must send an application, a balance sheet, and a profit and loss statement for the past year certified by the tax authorities to the Ministry of Family, Labor, and Social Services. Additionally, employers intending to employ foreign experts in the fields of engineering, construction, contracting, or consultation services must send pay slips of Turkish citizens working in the same positions and the contract between the foreign expert and the employer to the ministry.

Employers must apply for a work visa at the nearest Turkish Embassy/Consulate after having signed a contract with their employer and received a work permit.

To apply for a residency permit, foreign workers are required to apply at the local police station within 90 days of arriving in Turkey.

Employee Background Checks

Legal and Background Checks

There are no legal restrictions specifically banning background checks or enabling them in Turkish labour legislation. However, background checks must be conducted in accordance with the Law on the Protection of Personal Data No. 6698 and the Constitution of the Republic of Turkey. The employer has to abide by the obligations regulated under the Law.

It is also possible for the employer to conduct the background checks through third parties, provided that the third parties comply with the aforementioned obligations.

Pursuant to the Constitution and the Law, personal data can only be processed in cases regulated in law or with the subject’s explicit consent. On the other hand, there are limited public sources available to carry out background checks, and firms conducting background checks are not common in Turkey.

Last updated on January 19, 2024

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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