Hire in Turkey
Embarking on human resources best practices and recruitment in Turkey? Let’s begin.
Turkish Currency
Turkish Lira (TRY)
The Capital of Turkey
Ankara
Time Zone in Turkey
GMT+3
Important Facts About the Country of Turkey
Introduction to Turkey
Turkey, officially known as the Republic of Turkey, is a transcontinental country, spanning across both Asia and Europe. Geographically, it occupies a strategic position at the intersection of the Balkans, Caucasus, Middle East, and the eastern Mediterranean. Turkey shares its borders with the Black Sea to the north, Georgia to the northeast, Armenia, Azerbaijan, and Iran to the east, Iraq to the southwest, and Syria along with the Mediterranean Sea to the south. Additionally, Turkey is bordered by the Aegean Sea to the west, with Greece and Bulgaria situated to the northwest.
What to Know about Turkey’s Geography
Turkey spans across 783,562 square kilometers, with the majority, approximately 97%, located in Asia and the remaining 3% in Europe. In terms of land area, Turkey is the second-largest country in Europe, surpassed only by Russia. It is surrounded by seas on three sides, with the Aegean Sea to the west, the Black Sea to the north, and the Mediterranean Sea to the south.
Climate in Turkey
Turkey experiences diverse climates influenced by its coastal exposure and varying elevations. Coastal regions along the Aegean and Mediterranean Seas exhibit a temperate Mediterranean climate characterized by hot, dry summers and mild to cool, wet winters. On the other hand, coastal areas along the Black Sea showcase a temperate oceanic climate, featuring warm, wet summers and cool to cold, wet winters.
The Culture of Turkey
Turkey boasts a rich and diverse culture, shaped by influences from the Eastern Mediterranean, Eastern Europe, Caucasus, Central Asia, and the Middle East. The country embodies a unique blend of tradition and modernity, leading to significant variations in cultural practices, social attitudes, and lifestyles. Formerly a part of the Ottoman Empire, Turkey underwent a transformation with the establishment of the modern Turkish state. This shift emphasized a strong national identity, surpassing ethnic distinctions that were prevalent during the dissolution of the Ottoman Empire after World War I.
Religions Observed in Turkey
Turkey, as a secular state since the constitutional amendment in 1924, does not have an official religion. Islam holds the predominant position, with over 99% of the population adhering to the Muslim faith, primarily Sunni.
Languages Spoken in Turkey
The official language of Turkey is Turkish, serving as the mother tongue for around 90% of the population. Kurdish is spoken by approximately 12% of those of Kurdish origin. Additionally, a minority of the population communicates in Arabic, English, German, and French.
Turkish Human Resources at a Glance
Employment Law Protections in Turkey
Labor laws in Turkey apply to Turkish and foreign nationals. Turkey’s labor framework is derived from:
- Turkish Constitution
- Turkish Labor Code (No. 4857)
- Turkish Code of Obligations (No. 6098)
- Social Insurance and General Health Insurance Code (No. 5510)
- Code of Work Permits for Foreigners
- Code on Trade Unions and Collective Bargaining
- Workplace Health and Safety Code
Employment Contracts in Turkey
It is not obligatory to formalize an employment agreement in writing. Nevertheless, a written document must be furnished to the employee within two months of initiating employment, delineating the terms of:
The terms of employment, including:
- Work conditions
- Daily/weekly work hours
- Base salary and any
- additional/deductions
- Salary payment frequency/date
- Termination conditions
If both parties involved in the employment relationship are Turkish, the written document must be in the Turkish language.
Written form contracts are required for:
- Contracts may be established for various purposes,
- such as fixed-term employment, remote work, team collaboration,
- for individuals working in an artistic
- intellectual capacity for news agencies or magazines.
These employment contracts must state:
- The essential details outlined in the employment
- contract include the names of the employer and employee,
- start date of employment, expected duration of the contract,
- job title,
- brief description of the work, the place of work, wages, hours and days of work,
- the notice period for termination.
Turkey's Contract Terms
There is no differentiation between “blue-collar” and “white-collar” employees in Turkish labor laws, as the same general employment regulations apply to both categories. However, senior managers, recognized as employer representatives, cannot seek overtime wages or employment security benefits unless there is written instruction from the employer. Employment contracts are typically required to be for an indefinite period.
Pre-Employment Checks
Turkey does not have specific regulations governing background checks on applicants. However, data protection provisions must be observed when conducting such checks. In certain instances, obtaining the applicant’s consent is necessary, particularly when pertaining to health, criminal records, or political views. Third parties are permitted to perform background checks on behalf of the employer, subject to compliance with data protection regulations.
Health Checks
The employer is obligated to oversee that employees undergo medical examinations pertinent to the health and safety risks associated with their workplace duties.
Employees are required to provide any necessary supporting documents to demonstrate their fitness for the role.
Turkey's Guidelines Regarding Probation Period/Trial Period
The probationary period spans two months, extendable up to four months with mutual consent between the employer and employee. No benefits are accorded to the employee during this phase, and any leave taken is deemed unpaid.
Either party has the liberty to terminate the employment contract without notice during the probation period, or compensation in lieu of notice can be opted for.
The duration of the probation period is counted as part of the employee’s continuous service with the employer.
Regulations and Rules Regarding Working Hours in Turkey
In Turkey, the maximum weekly working hours are capped at 45 hours, with a daily limit of 11 hours. There should be a minimum of nine consecutive hours of rest between each workday, and employees are entitled to at least 24 hours of uninterrupted rest per week. The distribution of working hours across the week can be adjusted accordingly.
Rest breaks must be given in the following manner:
- 15 minutes for work lasting less than four hours
- 30 minutes for work lasting four to 7.5 hours
- One hour for work lasting more than 7.5 hours
Turkish Laws Regarding Overtime
Overtime is limited to 270 hours annually. Should an employee work over 45 hours in a week, they are entitled to compensation at a rate of 1.5 times their standard hourly wage. Alternatively, employees may opt for 1.5 hours of leave for every hour of overtime worked, instead of receiving overtime pay. This leave must be utilized within six months from the time the overtime was worked.
Employees who are pregnant or breastfeeding, under 18 years of age, or have a health condition that makes overtime work unsuitable for them are not eligible to work overtime.
Health and Safety in the Workplace
In Turkey, an employer must hire one or more healthcare professionals and establish a health unit to offer first aid, emergency care, and preventive healthcare services.
Rules Regarding Bonus and 13th Month Pay in Turkey
In Turkey, bonus payments are not compulsory, but it is a widespread practice to grant employees bonuses based on contractual agreements or discretionary decisions, contingent on the performance of the employee or the company.
Termination
An employment contract can be terminated if:
- The fixed-term contract has expired
- Mutual consent between both parties
- One party initiates the termination
- The death of the employee
When terminating an employment contract for a valid reason, the employer is required to end the employment within six working days after identifying the behavior that warrants dismissal. A formal letter outlining the reasons for termination must be issued, and the employee should be given the opportunity to submit a written explanation in their defense.
In cases of termination without a valid reason, the employer is obligated to observe the mandatory notice period and provide the necessary severance payment.
Collective Redundancies
The definition of a collective dismissal depends on the size of the workforce in the company:
- For companies with 20-100 employees, termination of at least 10 employees within one month is required.
- For companies with 101 to 300 employees, a dismissal of at least 10% within one month is mandated. Companies with more than
- 300 employees must undertake the dismissal of at least 30 employees within one month.
Notice Period
For indefinite term contracts, the notice period depends on duration of employment as follows:
- For less than 6 months – 2 weeks’ notice
- 6-18 months – 4 weeks’ notice
- 18-36 months – 6 weeks’ notice
- More than 36 months – 8 weeks’ notice
The employer has the right to terminate the employment agreement immediately by providing the corresponding salary in lieu of the notice period.
Redundancy/Severance Pay in Turkey
Severance pay is determined by taking into account one month’s gross wage and supplementary benefits for each year of the employee’s service. Regardless of the employee’s wage, the severance pay cannot surpass a specified government-set threshold, revised every six months (currently at TRY 23,489.83 for the period from July to December 2023). Eligibility for severance pay requires a minimum of one year of service with the employer, and the payment must be proportionate for periods of service less than a full year.
Severance pay is not obligatory in cases where there is a just cause for termination, such as instances of an employee’s health issues or dishonorable conduct.
Post-Termination Restraints / Restrictive Covenants
Agreements on post-employment restrictive covenants are permissible between the employer and the employee. Such restrictions can be outlined within the employment contract or through a separate written agreement. However, these covenants are subject to certain limitations. They can be effective for a maximum period of two years, with constraints on geographical scope and the nature of activities involved. Additionally, a restrictive covenant may only be applied to an employee who held a position where access to confidential information about the employer’s commercial activities was possible.
Fixed Term Contacts for Turkish Employees
Fixed-term contracts are allowable only under specific circumstances, such as the completion of a specific job or the occurrence of a defined event. These contracts conclude automatically at the specified expiration date without the need for notice. Despite this distinction, employers must provide equal terms to employees, irrespective of whether they are under a fixed-term or indefinite-term contract.
If a fixed-term employment contract is renewed, it transitions to an indefinite-term status, subjecting it to notice period requirements.
Data Protection
The legal framework for personal data protection in Turkey is established by the Personal Data Protection Law numbered 6698 (“KVKK”). Employers, acting as data controllers, are required to provide information to employees and prospective hires in compliance with Article 10 of the KVKK.
This includes informing employees and potential hires about:
- The employer, or its representatives, must disclose their identity.
- They need to specify the legal grounds and purpose for processing personal data.
- Additionally, if personal data is to be transferred, the destination and purpose of the transfer must be clarified.
- Information about the channels through which personal data is collected
- the legal rights of the data subject under the KVKK should also be communicated.
Tax and Social Security Information for Employers in Turkey
Personal Income Tax in Turkey
Turkey implements a cumulative income tax system, aligning with the calendar year. The applicable tax rate depends on the year-to-date cumulative income tax base, resulting in a progressive increase in the tax rate as the employee’s cumulative income tax base rises throughout the year.
Foreign nationals residing in Turkey are subject to taxation on their global income and profits, encompassing earnings both within and outside Turkey. This includes individuals with registered residence in Turkey and those staying continuously in the country for at least six months in a calendar year. If a foreign national is already taxed on their employment income in Turkey within another jurisdiction with a double taxation agreement, the terms of that treaty will prevent dual taxation of employment income.
Income tax on employment income in Turkey is assessed at progressive rates. For the year 2023, these rates are as follows:
| Income Brand | Tax Rate % |
|---|---|
| Up to TRY 70,000 | 15.0 |
| TRY 70,000 – TRY 150,000 | 20.0 |
| TRY 150,000 – TRY 550,000 | 27.0 |
| TRY 550,000 of TRY 1,900,000 | 35.0 |
| >TRY 1,900,000 | 40.0 |
Social Security in Turkey
Turkey’s Social Security Fund Insurance offers comprehensive coverage for employees, encompassing sickness, unemployment, disability, maternity care, pension, and work-related accidents and diseases. All employees are eligible for enrollment, allowing them to access these benefits upon registration with the social security system.
For foreign employees not subject to social security payments in their home country, full contributions are typically mandated in Turkey. However, exemptions from contributions are available for three months (or more, depending on social security treaties between the home country and Turkey).
From July 1st, 2023, to December 31st, 2023, the monthly social security ceiling is set at 100,608.90 TRY, subject to updates corresponding to changes in the minimum wage (capped at 7.5 times the monthly gross minimum wage).
Employees under 45 years of age are automatically enrolled in the Automatic Individual Pension System, known as ‘otomatik bireysel emeklilik sistemi’ (OTOBES), private pension schemes facilitated by the employer. A minimum 3% contribution from the employee’s gross salary is mandatory for participation.
| Employer (%) | Employee (%) | |
|---|---|---|
| Social Security Insurance | 15.5 – 20.5 | 14.0 |
| Unemployment Insurance | 2.0 | 1.0 |
*For employers to qualify for the 5% discount (Incentive No. 5510), timely payment of social security premiums is a prerequisite.
**The provided rates are general guidelines, and the actual rates applied may vary.
Important Information for Turkish Employees
Salary Payment
Employees receiving annual or monthly salaries must be remunerated in Turkish currency on a monthly basis.
In case the employer fails to make the payment within 20 days from the scheduled salary date, the employee retains the right to abstain from fulfilling their work duties. It’s important to note that such abstention does not constitute a strike.
Payslip
In Turkey, employers are obligated to furnish employees with an official, signed payslip that details the payment date, pay period, additional components to basic wages (such as overtime and commissions), and payments for weekly rest days and national holidays. The payslip should also itemize all deductions, including taxes and social insurance contributions.
Timesheets and Record Keeping
The following Turkish laws regulate the retention of employees’ personnel records or records containing employees’ personal data:
- The Social Security and General Health Insurance Law No. 5510, commonly known as the Social Security Law, mandates employers to maintain employee personnel files for ten years after the employee leaves the job (Article 86, Social Security Law).
- Additionally, the Occupational Health and Safety Regulation stipulates that employers must retain health-related employee files for a period of 15 years.
Annual Leave
Paid annual leave is a fundamental entitlement in Turkey protected by the constitution. It is not permissible to waive this right and substitute it with monetary compensation, even with the employee’s agreement. The duration of annual leave is contingent upon the length of employment with the same employer:
- Less than 1 year: No entitlement to paid annual leave
- 1-5 years: 14 days of paid annual leave
- 5-15 years: 20 days of paid annual leave
- More than 15 years: 26 days of paid annual leave
Sick Leave
Employees can avail a maximum of one week of paid sick leave, supported by a medical certificate. Extensions of sick leave beyond this period are possible but on an unpaid basis. Employers retain the right to terminate the employment contract if an employee’s sick leave surpasses six weeks.
Compassionate and Bereavement Leave
Employees are entitled to three days of paid leave in case of the death of a first-level relative, which includes parents, spouse, child, grandchild, siblings, and grandparents.
Maternity & Parental Leave
A pregnant employee is entitled to 16 weeks of maternity leave, divided into eight weeks before the birth and eight weeks after. In the case of a multiple pregnancy, an additional two-week period is added to the eight weeks post-birth. Throughout the maternity leave, the employee receives two-thirds of the full salary from the Social Security Institution.
If the employee wishes to work until delivery, a medical certificate must be submitted to confirm there are no concerns regarding the continuation of work. The employee can work until three weeks before the expected date of delivery, and the time spent working during this period will be added to the maternity leave following the birth.
Other provisions apply:
- The employee will receive paid leave for periodic examinations during pregnancy.
- Upon request, an employee can take up to six months of unpaid maternity leave.
- A male employee whose wife gives birth is entitled to five days of paid leave.
- Additionally, one of the parents is permitted up to ten days of paid leave in a year for the treatment of a child with at least 75% disability or a chronic disease.
Nursing Care Leave
Mothers with children under the age of 1 are granted 1.5 hours of time off per day for breastfeeding. The employee has the flexibility to determine the hours and intervals for utilizing this time, and the period is considered part of the daily working time with no reduction in wages.
Marriage Leave
Employees in Turkey receive a three-day paid leave for their marriage, applicable only once during their tenure with the company.
Benefits to the Employee in Turkey
Turkish Statutory Benefits
- Social protection in Turkey is based on two components:
- Social insurance in Turkey is funded through both employer and employee contributions, while social assistance and social services are non-contributory and financed by the government.
Turkey’s social security scheme is composed of the following branches:
- Long-term insurance in Turkey encompasses aspects such as the old age pension plan,
- invalidity, and death benefits.
- the short-term insurance branch covers work accidents, occupational diseases, as well as health and maternity benefits.
The Turkish Employment Agency governs unemployment insurance, which is responsible for administering unemployment benefits. This is paid out to employees if they:
- Became unemployed through no fault of their own
- Worked for at least 120 days leading up to termination
- Have made a minimum of 600 days’ worth of unemployment benefit contributions in the three years prior to unemployment
- Submitted an application to the Turkish Employment Agency within 30 days of becoming unemployed
Foreign nationals can access unemployment insurance benefits in Turkey if there is a reciprocal agreement between Turkey and their home countries. The pension amount for an employee is determined based on factors such as the commencement date of insurance (initial employment date throughout the entire work life), the duration of insurance, and the total contributions made.
Other Benefits
- Benefits provided by employers may include:
- Marriage and childbirth benefits
- Child allowance
- Private health insurance or a private pension scheme
- Meal allowances or tickets
- Provision of a service vehicle
- Allowances for electricity, natural gas, and similar heating, which may qualify for social security premium exemptions under specific conditions.
Rules Regarding Visas and Foreign Workers in Turkey
General Information
Foreign nationals intending to work in Turkey must obtain both a work visa and a work permit. The Ministry of Labor of the Republic of Turkey and Social Security issues the work permit, and it is essential to have a work visa for the permit to be valid.
The employer in Turkey is responsible for processing the work permit, while the employee must submit a work visa application at the embassy of the Republic of Turkey in their home country.
For a company to hire foreign employees, its paid-in capital must be a minimum of TRY 100,000. Additionally, the number of foreign employees cannot exceed 20% of the total workforce, with exceptions for businesses in the entertainment and travel sectors. Certain professions, such as dentistry, pharmacy, veterinary medicine, nursing, attorneyship, and notaryship, are restricted for employment by foreigners.
Work Permit
There are four types of work permits in Turkey:
- A temporary work permit typically has a maximum validity of one year.
- A permanent work permit is available for foreigners holding a long-term resident permit or those with a minimum of eight years of legal work permit. This permit grants all the benefits associated with a long-term residency permit.
- An independent work permit is granted to foreigners who have continuously resided in Turkey for at least five years.
- The Turquoise Card is a distinctive work permit designed for exceptional employees possessing highly sought-after skills and experience, contributing significantly to the technology and economy of Turkey.
The employer needs to submit the below documents for application of a work permit:
- Application for Work Permit
- Form for Foreign Personnel Application
- Current Overview of Shareholding and Capital Structure for the Hiring Entity
- Latest Financial Statements, certified by a qualified accountant or tax office
- Power of Attorney, authorizing the individual submitting the online application on behalf of the entity
After submission, the Ministry of Labor and Social Security reviews the application and issues a decision within a maximum of 30 days. The foreign national is required to enter Turkey within 180 days of the work permit issuance.
The temporary work permit is subject to two possible extensions. The total duration of work on a temporary permit can extend up to six years, contingent on favorable evaluations by the Ministry. It’s essential for the foreign personnel to remain employed by the same employer throughout the work permit period.
Public Holidays Recognized by Turkey in 2024
| Occasion | Date | |
|---|---|---|
| 1 | New Year’s Day | January 1 |
| 2 | Ramazan Bayrami Holiday | April 9 – 11 |
| 3 | National Sovereignty and Children’s Day | April 23 |
| 4 | Labor Day | May 1 |
| 5 | Commemoration of Atatürk, Youth and Sports Day | May 19 |
| 6 | Kurban Bayrami Holiday | June 16 – 19 |
| 7 | Sacrifice Feast Holiday | June 17 – 19 |
| 8 | Democracy and National Unity Day | July 15 |
| 9 | Victory Day | August 30 |
| 10 | Republic Day | October 29 |
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