How to hire employees in Turkey

Turkey offers foreign companies a compelling entry point into Eurasia's strategic crossroads. Skilled workforce, growing manufacturing base, strategic location bridging Europe and Asia, and expanding consumer market of 85+ million people.

However, geographic advantage does not necessarily mean regulatory simplicity.

Turkey enforces comprehensive employment regulations with strict compliance expectations across Labor Law No. 4857, mandatory SGK social security registration, and detailed severance pay calculations. Early missteps in contract structure, contribution filings, or employee classification trigger costly disputes, regulatory penalties, and expansion delays that compound with every hire.

Hiring employees in Turkey requires:

• Clarity on hiring models (entity vs. Employer of Record vs. contractor)
• Mandatory employer obligations under Turkish Labor Law No. 4857
• Payroll tax structures and social security contributions
• Termination protections and notice requirements
• Legal distinctions separating compliant employment from misclassification risk

This guide walks you through each step: choosing the right hiring model, onboarding your first employee, managing payroll, navigating termination rules, and avoiding compliance traps that catch unprepared employers off guard.

Core truth: Hiring employees in Turkey requires the right hiring model and strict adherence to local labor laws. One hire done wrong costs more than doing ten right.

What Are Your Employment Options When Hiring in Turkey?

Before posting a job or signing an offer letter, decide how you'll employ talent. Foreign companies typically choose between three models: establishing a local entity, partnering with an Employer of Record (EOR), or engaging contractors. Each has distinct implications for compliance risk, cost structure, and operational control.

Entity setup → means full legal presence. Register a Turkish company (Limited or Joint Stock Company), handle all employer obligations directly, and bear complete liability.

EOR hiring → outsources employment compliance to a third-party legal employer while you retain operational control.

Contractor engagement → treats individuals as independent service providers, not employees. But only when the relationship genuinely reflects independence.

The stakes are higher than they appear. Misclassifying an employee as a contractor triggers back taxes, social security penalties, and reclassification claims. Setting up a local entity in Turkey for hiring costs TRY 50,000–TRY 150,000 total, including registration fees, notary services, legal counsel, accounting setup, and regulatory filings with the Trade Registry Office and Revenue Administration.

Choosing the wrong model doesn't just slow hiring. It creates legal exposure that compounds with every additional hire.

1. Hiring Through a Local Entity

Establishing a Turkish entity gives you direct control over employment, payroll, and benefits administration. You become the legal employer. Full responsibility for Turkish Labor Law compliance, tax withholding, SGK contributions, and statutory filings.

This model makes sense when:

• You're committing to long-term operations in Turkey
• Hiring at scale (typically 10+ employees)
• You need to own intellectual property and operational infrastructure locally

The trade-off: entity formation takes 2-4 months, requires minimum capital requirements (TRY 50,000 for Limited Company), ongoing legal and accounting support, and locks you into administrative obligations even if hiring slows.

2. Hiring Through an Employer of Record (EOR)

An Employer of Record (EOR) becomes the legal employer in Turkey while you direct the employee's day-to-day work. The EOR handles employment contracts, payroll processing, tax compliance, SGK administration, and statutory filings.

You maintain operational control. They absorb legal liability.

EOR hiring suits:

• Companies testing the Turkish market
• Scaling quickly (hires live in days, not months)
• Expanding into multiple countries without establishing entities everywhere

It's not a workaround. It's a legitimate employment model under Turkish law, ideal when speed, compliance assurance, and low upfront cost matter more than direct entity ownership.

3. Hiring Independent Contractors

Contractors are appropriate for project-based work, specialized services, or genuinely independent engagements. Turkish law distinguishes employees from contractors based on subordination, continuity, exclusivity, and the reality of the working relationship. Not what the contract says.

Misclassification happens when companies treat contractors like employees:

• Setting their hours and work schedules
• Providing equipment and workspace
• Directing how work is done
• Maintaining exclusive relationships

Local Entity Vs EOR Vs Independent Contractor: Side-by-Side Comparison

What Are The Legal Requirements for Hiring in Turkey?

Turkish employment law is governed by Labor Law No. 4857, social security legislation, and various labor regulations enforced by the Ministry of Labor and Social Security. Turkey's regulatory framework emphasizes worker protection, mandatory social security coverage, and detailed procedural requirements.

Key employer obligations:

• Provide written employment contracts documenting essential terms
• Register employees with SGK (Social Security Institution) before their first working day via the e-SGK system
• Make monthly contributions to SGK (pension, health, unemployment, work accident insurance)
• Withhold income tax according to progressive rates
• Maintain accurate payroll records and personnel files
• Comply with working hours limits (45 hours per week maximum)
• Provide mandatory paid leave entitlements (minimum 14-26 days annually based on tenure)
• Pay severance for eligible terminations (30 days' salary per year of service)
• Maintain occupational health and safety compliance
• Report employment to the Turkish Employment Agency (ISKUR)

Employment relationships are presumed indefinite unless a fixed-term contract meets specific legal criteria. Probationary periods cannot exceed two months (extendable to four months for supervisory/technical positions).

Turkey's enforcement environment is not theoretical. The Labor Inspectorate conducts workplace inspections. Employees can file claims through labor courts. Non-compliance with payroll or contract standards results in financial penalties, back-payment orders, and potential business restrictions.

The presumption favors employee protection, not employer flexibility.

What Are the Employment Contract Rules in Turkey?

Written, locally compliant employment contracts are not optional. They're legally required.

While oral agreements are technically valid for indefinite-term employment, written documentation is mandatory for fixed-term contracts and strongly recommended for all employment to avoid disputes. The contract must be in Turkish, signed by both parties, and provided before or upon the employee's first day of work.

Types of Employment Contracts

• Indefinite-term contracts are the default and most common form. They continue until lawfully terminated by either party with proper notice and include full entitlements under Turkish labor law, including severance rights.
• Fixed-term contracts are permitted for specific objective reasons such as temporary project work, seasonal employment, specific tasks with predetermined end dates, or substitution of absent employees. Turkish law allows fixed-term contracts but requires objective justification. Renewal of fixed-term contracts without objective grounds or exceeding reasonable duration converts contracts to indefinite-term status.
• Part-time contracts specify regular working hours less than comparable full-time work (less than standard weekly hours), with pro-rata entitlements to benefits and leave.

Full-time employment follows a maximum 45-hour workweek as established by law, typically structured as 9 hours per day over 5 days or distributed differently.

Probationary periods allow employers to assess new hires during the first two months (extendable to four months for supervisory, technical, or specialized positions), with simplified termination procedures during this window.

What to Include in an Offer Letter?

Employment offers must specify the job title, duties, reporting structure, and work location.

Essential contract elements:

• Employer and employee identification details
• Job title, description, and position
• Start date and contract type (indefinite or fixed-term with objective reason)
• Work location
• Gross monthly salary
• Working hours and schedule
• Overtime compensation terms
• Annual leave entitlement (14-26 days based on tenure)
• Notice period requirements
• Social security registration confirmation
• Probation period (if applicable, maximum 2-4 months)

Clarity matters. Ambiguous job descriptions or vague compensation terms create disputes during performance reviews or terminations. Turkish labor courts interpret contract ambiguities in favor of employees.

NDAs and Confidentiality Agreements

Confidentiality clauses are enforceable under Turkish law, particularly when protecting trade secrets, client information, or proprietary processes. Intellectual property (IP) created during employment typically belongs to the employer for work-related inventions unless otherwise specified.

Post-employment non-compete clauses are valid but must meet strict requirements: reasonable duration (typically 6 months to 2 years), adequate compensation during the restriction period, limited scope and geography, and must protect legitimate business interests. Non-competes apply only to employees with access to sensitive business information or client relationships.

Overly broad non-competes risk being struck down as unenforceable.

How Payroll Costs and Taxes Work in Turkey?

Turkey's labor costs are competitive within the region. But only if you understand the full employer burden.

As of 2026, Turkey's monthly minimum wage has reached TRY 33,030 (27% increase from 2025 to 2026), applicable nationwide for full-time workers. Typical total employer costs for mid-level hires range from TRY 40,000 to TRY 100,000 per month, including gross salary and mandatory contributions.

1. Payroll and Salary Structure in Turkey

Salaries are quoted and paid in Turkish lira (TRY). Compensation typically includes base salary, performance bonuses (if applicable), meal vouchers (a common tax-advantaged benefit), and mandatory benefits.

Employers must meet minimum wage thresholds of TRY 22,104 gross monthly for full-time employment.

2. Employer Payroll Obligations

Employers face mandatory SGK (Social Security Institution) contributions averaging 20.75% of gross salary:

• Pension insurance: 15.5% of gross salary
  
  
• General health insurance: 7.5% of gross salary (split with employee, employer pays 0% after employee portion)
  
  
• Unemployment insurance: 3% of gross salary (employer share 2%)
  
  
• Work accident and occupational disease insurance: 1-6.5% depending on industry risk classification
  
  
• Disability, old-age, and death insurance: Already included in the pension insurance rate above
  
  

Total employer burden for SGK contributions typically ranges 20.75-22% above gross salary, depending on industry risk classification.

These contributions sit on top of the employee's gross salary. Not embedded within it.

3. Employee Tax Contributions

Employees face significant deductions withheld at source:

• SGK employee contributions: ~14% of gross salary (pension 9%, general health 5%, unemployment 1%)
• Income tax: Progressive rates (15-40%)
• Stamp duty: 0.759% of gross salary

Income tax brackets (2026):

• Up to TRY 110,000: 15%
• TRY 110,001 – TRY 230,000: 20%
• TRY 230,001 – TRY 870,000: 27%
• TRY 870,001 – TRY 3,000,000: 35%
• Above TRY 3,000,000: 40%

Tax deductions and exemptions apply (minimum living allowance, disability, family circumstances).

Total employee deductions range from 25-40% of gross salary, depending on income level.

4. Social Security Contributions

Both employer and employee contribute to Turkey's social security system, managed by SGK, funding pensions, healthcare, unemployment benefits, and work accident insurance. All contributions are calculated on gross salary with minimum and maximum contribution bases updated annually.

5. Minimum Wage and Statutory Pay Requirements

The monthly minimum wage of TRY 33,030 gross (2026 expected) applies nationwide for full-time work. This is frequently adjusted for inflation.

Employers must also pay:

• Overtime premiums (50% surcharge for hours beyond 45 per week)
• Holiday work premiums (100% surcharge for work on weekly rest days and national holidays)
• Annual leave pay (14 days for employees with 1-5 years tenure, 20 days for 5-15 years, 26 days for 15+ years)
• Severance pay upon eligible terminations (30 days' salary per year of service, capped annually)
• Notice pay if termination without notice or payment in lieu

How Employers Pay Employees in Turkey?

1. Payment Methods

Salaries are paid via bank transfer to the employee's Turkish bank account. Cash payments are uncommon for formal employment and create compliance risks.

Payslips must contain:

• Pay period
• Gross salary and all components (base, bonuses, allowances, overtime)
• All deductions (SGK contributions, income tax, stamp duty)
• Employer SGK contributions
• Net salary
• Year-to-date totals

Payslips must be provided monthly, typically electronically or in print.

2. Salary Payment Frequency

Payroll runs monthly, with salaries typically paid at the end of the month or within the first week of the following month for work performed.

Payment delays beyond reasonable timeframes breach labor law and give employees grounds for lodging complaints with the Ministry of Labor or claiming constructive dismissal.

How To Onboard Employees in Turkey?

1. New Hire Onboarding Checklist

Register the employee with SGK via the e-SGK system before their first working day (legally required). Provide signed employment contracts, company policies, role-specific training materials, and access to payroll/benefits systems.

Onboarding essentials:

• Register the employee with SGK via e-SGK before the start date (mandatory)
• Register with the Turkish Employment Agency (ISKUR) if required
• Sign and provide an employment contract
• Conduct occupational health and safety orientation
• Provide workplace safety training (mandatory)
• Complete work accident insurance registration
• Set up payroll system access
• Assign a direct manager and clarify expectations
• Provide employee handbook and company policies

Schedule orientation sessions covering workplace health and safety (mandatory under Occupational Health and Safety Law No. 6331), company policies, and reporting structures. Ensure the employee understands leave policies, overtime procedures, and severance entitlements.

2. Required Employee Documentation

Turkish employment and tax regulations require employers to collect specific employee documents at the time of onboarding. These records support payroll processing, SGK registration, and statutory compliance.

Documents you need from new hires:

• Turkish ID (TC Kimlik) card or residence permit for foreigners
• Tax identification number
• SGK registration number (if previously employed)
• Bank account details (IBAN) for salary payment
• Educational certificates and diplomas relevant to the role
• Work permit (for foreign nationals)
• Proof of address
• Military service completion document (for male Turkish citizens)
• Health examination certificate (for certain industries)

Maintain signed copies of the employment contract, occupational health and safety training records, and acknowledgment of company policies in the employee's personnel file. These documents become critical during labor inspections or disputes.

What Are The Best Practices Of Interviewing and Hiring in Turkey?

Turkish labor law prohibits discrimination based on language, race, color, gender, disability, political opinion, philosophical belief, religion, sect, age, or similar grounds. Interview questions must focus on job-related qualifications and competencies.

• Avoid questions about family planning, marital status, religious beliefs, political affiliations, pregnancy intentions, or health conditions unless directly relevant to essential job requirements and legally justified.
• Data privacy matters. Under the Personal Data Protection Law (KVKK), candidate information must be collected with consent, stored securely, and used only for recruitment purposes. Candidates have rights to access and correct their information.
• Document retention and processing justifications carefully.
• Turkish candidates value job security, career advancement opportunities, and comprehensive benefits packages.
• Communicate hiring timelines, provide prompt feedback, and set realistic expectations about compensation and role responsibilities.

A sluggish or opaque hiring process signals organizational dysfunction.

Work Permits and Right to Work in Turkey

1. Turkish citizens have unrestricted work rights in Turkey and require no permits.

2. Foreign nationals require valid work permits issued by the Ministry of Labor and Social Security before starting employment. Common work authorization types include:

• Indefinite-term work permit: For long-term employment after 8 years of a legal work permit or other qualifying conditions
• Definite-term work permit: For a specific employer and duration, the most common type
• Independent work permit: For self-employed foreigners or business owners
• Turquoise Card: For highly qualified professionals, offers indefinite work and residence rights
• Exemptions: Certain categories are exempt from work permit requirements (refugee status holders, humanitarian residence permit holders, etc.)

Key considerations for foreign national hires:

• Processing times: expect 1 to 3 months, depending on permit type and completeness
• Work permit applicationsare  typically submitted by the employer on the employee's behalf
• Quota system limits foreign workers (generally max 10% of Turkish workforce per company, exceptions exist)
• Work permits are tied to specific employers and positions initially
• A residence permit must be obtained separately or simultaneously
• After holding a legal work permit for 8 years, eligible for an indefinite work permit

Hiring foreign nationals without valid work authorization exposes employers to fines from TRY 15,000-50,000 per employee, potential criminal liability, and prohibition from hiring foreign workers for specified periods.

How Does Employment Termination Work in Turkey?

1. Lawful Grounds for Termination

• Employers can terminate for just cause (immediate termination for serious misconduct without notice or severance), valid cause (termination with notice for performance, conduct, or business reasons), or by mutual agreement.
• Termination requires documented justification and adherence to strict procedures. Just cause terminations require exhaustive grounds listed in the Labor Law (theft, violence, serious misconduct). Valid cause terminations require advance notice and severance payment.
• Employees enjoy strong protections against unfair dismissal. Turkish labor courts scrutinize termination justifications and frequently order reinstatement or compensation for improper dismissals, particularly in companies with 30+ employees (job security provisions apply).

2. Notice Periods

Notice periods depend on employment duration:

Employer or employee-initiated notice:

• Less than 6 months tenure: 2 weeks' notice
• 6 months to 1.5 years tenure: 4 weeks notice
• 1.5 to 3 years tenure: 6 weeks notice
• 3+ years tenure: 8 weeks notice

During probation (first 2-4 months):

• No notice required from either party

Just cause termination:

• No advance notice required if proper grounds are proven

Employers can pay notice period in lieu. Both parties must provide written notice.

3. Severance Requirements

Severance requirements depend on termination circumstances:

Severance pay (kıdem tazminatı):

• Payable for: employer-initiated terminations without just cause, retirement, compulsory military service, marriage (for female employees within 1 year), death
• Calculation: 30 days gross salary per year of service
• Cap: Government sets annual maximum (approximately TRY 37,000 for 2026)
• Minimum 1 year tenure required for eligibility

Notice pay:

• Required if the proper notice period is not provided
• Equals salary for the statutory notice period

Unused vacation pay:

• Pro-rated payment for accrued but unused annual leave

Just cause termination (by employer):

• No severance or notice pay if proper grounds are proven
• Burden of proof on the employer
• Courts rarely uphold just cause without overwhelming evidence

Job security provisions (companies with 30+ employees):

• A valid cause must be proven for terminations after probation
• Invalid terminations result in: reinstatement order OR 4-8 months' salary compensation plus wage arrears
• Employee chooses between reinstatement and compensation

Typical severance for employees with 5 years of tenure:

• 5 years x 30 days x monthly salary (capped at annual maximum per year)
• Plus notice pay if not provided
• Plus accrued vacation

Employee vs Contractor Classification in Turkey

Turkish authorities assess classification based on subordination, continuity, personal service obligation, and integration into the employer's organization. SGK and labor courts presume employment relationships when individuals work under continuous direction. Contracts labeled "independent contractor" mean nothing if the working relationship resembles employment.

Misclassification consequences include:

• Retroactive reclassification as an employee from day one
• Back payment of all SGK contributions (employer ~20.5%, employee ~14%)
• Back payment of all employee benefits (vacation pay, severance rights, overtime)
• Income tax adjustments and penalties
• Administrative fines from labor authorities
• Automatic indefinite employment contract status
• Criminal prosecution for social security fraud

The "one contractor won't attract attention" myth dies fast when SGK audits or employee claims begin. Turkish authorities actively pursue misclassification through e-SGK monitoring systems.

What Compliance Risks Should Employers Know When Hiring in Turkey?

• Payroll non-compliance (incorrect SGK contributions, missed tax withholding, failure to register employees via e-SGK before start date, or delayed monthly filings) results in financial penalties, back-payments with interest, and potential criminal liability for serious violations. SGK conducts electronic monitoring and regular audits.
• Contract violations (missing written contracts, failure to specify terms clearly, unclear employment conditions, or improper use of fixed-term contracts without objective justification) create unenforceable terms and heavily favor employees in disputes. Courts presume indefinite employment status when documentation is deficient.
• Termination disputes arise when employers bypass due process, fail to document valid cause adequately, miscalculate severance or notice pay, or terminate without following job security provisions (30+ employee companies). Turkish labor courts tilt toward employee protection. Improper terminations result in reinstatement orders or compensation of 4-8 months' salary plus severance and notice pay.

Compliance failures don't just cost money. They damage the employer brand in a market where labor rights awareness is growing, and enforcement through e-SGK systems is intensifying.

How an Employer of Record (EOR) Helps You Hire in Turkey?

An Employer of Record (EOR) eliminates entity formation delays, absorbs compliance risk, and handles payroll, tax, SGK contributions, and benefits administration.

What you gain with an EOR:

• Speed: Hires go live in days instead of months
• Certainty: Turkish Labor Law adherence, accurate SGK e-registration, proper severance calculations
• Control: Employee reports to you, performs work under your direction
• Risk mitigation: EOR handles complex e-SGK systems, notice period compliance, and changing regulations

EORs don't replace strategic workforce planning. They enable it.

• Testing the Turkish market without committing to entity setup costs? An Employer of Record (EOR) model makes sense.
• Scaling from 2 to 20 employees within six months? An EOR enables rapid, compliant growth.
• Hiring across multiple Eurasian countries without setting up local subsidiaries? An EOR keeps expansion flexible and manageable.

The model works because it's legally recognized: the EOR is the statutory employer, you're the operational employer, and the employee receives full Turkish labor law protections.

How Gloroots Simplifies Hiring in Turkey?

When hiring in Turkey through Gloroots, the entire process is managed for you end-to-end. You do not need to coordinate vendors, navigate local regulations, or manage administrative steps.

Gloroots runs the complete hiring workflow:

• Candidate sourcing, shortlisting, and background verification
• Initial screening to assess skills, experience, and role fit
• Interview coordination for final selection
• Offer issuance and compliant employment setup
• Statutory registrations (SGK e-registration, ISKUR), payroll setup, and benefits administration
• Employee onboarding aligned with Turkish labor regulations

This model removes operational overhead entirely, allowing you to focus on building and managing your team while Gloroots handles hiring execution, compliance, and onboarding from start to finish.

Gloroots provides end-to-end EOR services in Turkey, handling employment contracts, payroll processing, tax compliance, SGK administration, severance calculations, and statutory filings. Local compliance expertise ensures your hiring aligns with Turkish Labor Law requirements, from contract drafting to termination procedures.

The platform combines self-service functionality (contract management, onboarding workflows, payroll visibility) with dedicated customer success support.

With Gloroots, you get:

• Audit-ready reporting
• Transparent cost breakdowns
• Finance-team-friendly invoicing with country-level detail
• GL mapping

Gloroots scales with you: whether hiring your first Turkish employee or expanding a distributed team across 140+ countries, the infrastructure supports growth without the complexity of multi-entity management.

It's not a vendor relationship. It's workforce infrastructure that adapts to your expansion strategy.

[Include Gloroots CTA Banner - Here]

FAQs

1. Can a foreign company hire employees in Turkey without setting up a local entity?

Yes. Foreign companies can hire through an Employer of Record (EOR) without establishing a Turkish entity. The EOR becomes the legal employer, handling compliance, payroll, tax, and SGK obligations while you direct the employee's work.

2. What are the legal requirements for hiring employees in Turkey?

Employers must provide written contracts, register employees with SGK via e-SGK before start date (mandatory), make monthly SGK contributions (~20.5% of salary), withhold income tax and stamp duty, comply with 45-hour weekly limit, provide annual leave (14-26 days), pay severance for eligible terminations, and maintain compliance with Turkish Labor Law No. 4857.

3. What taxes and social security contributions do employers pay in Turkey?

Employers pay around 20–21% of gross salary toward social security (SGK), covering pensions, unemployment insurance, and work accident insurance.

4. How long does it take to hire and onboard an employee in Turkey?

Through an EOR, hiring and onboarding can occur within 5 to 10 business days. Establishing a local entity first adds 2 to 4 months for registration and regulatory approvals.

5. What is the easiest way to hire employees in Turkey compliantly?

Partnering with an EOR is the fastest, lowest-risk path. The EOR handles contracts, payroll, tax, SGK e-registration, severance calculations, and benefits while you maintain operational control, eliminating entity formation costs and enabling hiring within days.

‍

‍