Turkey

Turkey PEO & Employer of Record (EOR) Services with WeHG

WeHG offers a comprehensive PEO (Professional Employer Organization) and Employer of Record service in Turkey, simplifying the process of entering the Turkish market. Unlike the traditional approach of setting up a subsidiary, WeHG allows businesses to start operations within days, significantly reducing time and costs. We handle the legal and compliance aspects by hiring employees on your behalf while you retain complete operational control. Our service ensures that your workforce is fully compliant with Turkish regulations, allowing you to focus on growing your business.

Benefits of WeHG’s EOR Services in Turkey

• Quick Market Entry: Start operations in Turkey without the need for establishing a local entity.
• Cost Efficiency: Save on expenses related to subsidiary setup and maintenance.
• Legal Compliance: We ensure full compliance with Turkish employment laws, including payroll, taxes, and social security.
• Risk Management: We mitigate risks associated with employment laws, hiring, and terminations.
• Tailored Solutions: Whether you hire local or expat employees, we provide tailored solutions that match your business needs.

Turkey Fast Facts

• Population: 83.1 million
• Land area: 783,356 km²
• Capital: Ankara
• Currency: Turkish Lira (TRY)

Hiring and Employment Contracts in Turkey

While a written employment contract is not mandatory, if one is not provided, employers must issue a written document within two months of employment. This document should outline key terms such as work conditions, salary, working hours, and termination terms.

Contracts may vary as:

• Permanent employees
• Independent contractors/self-employed
• Shift workers: Must receive 11 hours of rest between shifts and 24 hours of rest per week.

WeHG ensures compliance with all contract types and regulations, simplifying your hiring process in Turkey.

Types of Employment Contracts in Turkey

• Permanent contracts: Recommended for most sectors due to stability and legal advantages.
• Fixed-term contracts: Typically limited to specific sectors, regulated by Turkish employment law.

Turkey Working Hours

In Turkey, the standard full-time workweek is 45 hours. The Labor Law allows flexible distribution of these hours, provided that daily working hours do not exceed 11 hours. Employers must also ensure that:

• Overtime does not exceed 200 hours per year.
• Night shifts are capped at 7.5 hours per night.
• Employees receive a minimum of 24 hours of rest per week.
  Overtime work must not exceed 270 hours annually, and employees are compensated accordingly.

Vacation Leave in Turkey

Employees in Turkey are entitled to paid annual leave based on their length of service:

• 1 to 5 years: Minimum of 14 days.
• 5 to 15 years: Minimum of 20 days.
• 15+ years: Minimum of 26 days. For workers under 18 or over 50, the minimum holiday entitlement is 20 days. Paid leave is granted after one year of service.

Maternity Leave

Expectant mothers in Turkey are entitled to 16 weeks of paid maternity leave: 8 weeks before and 8 weeks after childbirth. Mothers can extend their pre-birth work period up to 37 weeks with a physician’s approval, transferring those extra weeks to the post-birth period. Fathers are granted 5 days of paid paternity leave.

Parental Rights

In households where both parents work, either parent can request part-time work until their child reaches school age.

Turkish Severance Laws

Employers are required to provide a notice period based on the employee’s length of service:

• Less than 6 months: 2 weeks
• 6 to 18 months: 4 weeks
• 18 months to 3 years: 6 weeks
• More than 3 years: 8 weeks

Severance pay is granted for employees with at least one year of service, calculated at 30 days’ gross salary per year worked. The severance payment is based on the most recent gross salary, but the current maximum payment is capped at TRY 6,730.15 per year. Employers are not required to pay severance for dismissals based on just cause (e.g., misconduct or immoral behavior).

Turkey Tax

Social Security Premium Payments

Social security premiums (as a percentage of employee’s gross earnings) are payable by both employers and employees. To give an outline, the below table shows the rates regarding the issue. 

Foreigners making social security contributions in their home countries do not have to pay the Turkish social security premiums if there is a reciprocal agreement between the home country and Turkey.

 Individual income tax rates applicable for 2020 are as follows: 

The total rate for mandatory social contributions is 36.55% (as of 1 January 2020), levied on both the employer and the employee.

Health Insurance Benefits in Turkey

Entitlement to time off

The Employee is entitled to the sick leave as defined by the Labor Law of Turkey. The Employee shall notify the Employer in case of his absence from work through illness.

In practice, most employers continue to pay employees their full salary while they are sick and deduct the amount paid by the Social Security Institution from the employee’s salary.

Additional Benefits in Turkey

Some employers provide meal vouchers or cash allowances, company cars, and/or private healthcare.

Turkey Holidays

Public holidays are not included in the minimum paid holiday entitlements and employees are entitled to their regular daily salaries for these public holidays. These holidays are as follows:

• New Year (1 January).
• National Sovereignty and Children’s Day (23 April).
• Labour Day (1 May).
• Youth and Sports Day (19 May).
• Democracy and Freedom Day (15 July).
• Victory Day (30 August).
• Republic Day (29 October).
• Ramadan and Eid Holidays (for 2020, the dates of Ramadan are 24 to 26 May, and the dates of Eid are 31 July to 3 August).

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your overseas teams efficiently while minimizing cost and risk.