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Your Guide to Employer of Record & Payroll Services in Turkey 2024

Employer of Record & Payroll Services in Turkey

Table of Content



Building a remote team?


Businesses eyeing global expansion increasingly view Turkey as a strategic location, especially for those looking to hire remote developers or set up dedicated development teams. The country's vibrant economy and strategic position make it an attractive destination for startups focused on MVP development and companies aiming to hire freelance experts. However, navigating Turkish employment laws can be daunting, underscoring the importance of Employer of Record (EOR) services for a smooth operational transition.



Employer of record in Turkey


An Employer of Record in Turkey is crucial for companies seeking to manage their workforce in this complex legal environment. This service is particularly beneficial for businesses planning to outsource key functions, hire remote teams, or establish an in-house team in Turkey.


  • Legal compliance EORs play a pivotal role in ensuring compliance with Turkish labor laws, crucial for businesses entering this market. They help companies adhere to employer-of-record agreements and local employment regulations.

  • Streamlining HR staffing services: EORs simplify the process of building a team in Turkey, whether it's hiring PHP programmers, web designers, or remote sales teams. They handle the complexities of HR processes, allowing companies to concentrate on their primary business goals.

  • Payroll and tax management for remote teams: A key aspect of an employer of record services is managing payroll and tax obligations. EORs in Turkey ensure these critical functions are handled accurately and in compliance with local laws, essential for businesses with remote teams.

  • Visa and mobility support for global talent: EORs also assist businesses in bringing international talent to Turkey, providing support with visa applications and mobility requirements for roles like iOS or Android developers.

  • Risk mitigation in employment: EORs reduce the legal risks associated with non-compliance with Turkish employment laws, a vital service for companies employing both local and remote workers.

  • Local expertise for global businesses: EORs offer valuable local market insights, crucial for businesses aiming to hire a dedicated team in Turkey. This expertise includes understanding cultural nuances and employment practices,  for successful operations in the Turkish market.



Turkey at a glance (2023)


  • Area: 783,356 sq km

  • Population: 84.7 million

  • Currency: Turkish Lira (TRY)

  • Capital City: Ankara

  • Official Language: Turkish

  • Literacy Rate: 96.7%

  • Gross Domestic Product (GDP): 3.2% growth rate projected



Turkey at a Glance


One platform to grow your global team


Gegidze provides a focused platform for businesses aiming to grow their global team, particularly in the technology sector. We specialize in staff augmentation, employer of record services, and digital solutions, making us a valuable partner for startups and small to medium-sized businesses looking to scale up.



Employment in Turkey


The minimum wage in Turkey


  • Statutory earnings: 13,414.50 ($ 450) gross per month

  • As of 2023, full-time This is a standard benchmark across the country. 


Working hours


  • Standard workweek:  45 hours


Turkish labor law promotes a balance between professional and personal life. 


The minimum age to work


  • Employment age criteria: The law in Turkey sets a minimum legal age for employment, safeguarding younger individuals in the workforce. 


The employment of individuals under 15 years old is strictly forbidden. For those aged between 15 and 18, there are specific regulations and limitations in place governing their employment.


Overtime compensation


  • Extra work pay: 270 hours of overtime annually


Employers from Turkey receive additional pay for the above-mentioned hours. 


Annual leave


  • Vacation time: 14 - 26 days, based on their length of service.


Paid public holidays


  • Holiday leave: Employees in Turkey enjoy paid leave on national and general holidays. 


Medical/sick leave


  • Health-related absences: Turkish employees on sick leave with a medical certificate continue to receive their wages. 


Maternity leave


  • For expecting mothers: 16 weeks of paid maternity leave, split before and after childbirth. In cases of multiple births, an extra 2 weeks are added to the prenatal period. 


Special leaves


  • Personal time off:

  • Marriage leave: 3 days.

  • Bereavement leave: 3 days for the loss of a close family member.

  • Adoption leave: 3 days.

  • Paternity leave: 5 days.

  • Care for disabled children: Up to 10 days annually for parents of a disabled or chronically ill child.


Employee health benefits in Turkey


  • Workplace health checks: Mandatory health examinations are required for employees, especially in physically demanding roles. 


Employees' data protection rights


  • Data privacy: Turkish laws protect employees' data, aligning with national and international privacy standards. 


Employees' anti-discrimination rights


  • Equality in employment: Anti-discrimination laws in Turkey ensure fair treatment of employees regardless of race, gender, religion, or other personal attributes. 



Grow your team in Turkey with remote


Expand your team in Turkey with remote work. Turkey is gaining recognition as an ideal spot for growing your remote team, especially in the tech industry. This is thanks to a robust talent marketplace and a culture that fully embraces remote work. Here, you can tap into Turkey's skills without the need for extra office space, making it both cost-effective and strategically sound for startups and established companies alike.


Talent Marketplace


Hire Freelancers


Ever thought hiring could be as simple as online shopping? That's what we've made possible. On our platform, you can quickly find and hire freelancers.


Say goodbye to the hassle of traditional hiring. With us, it's as easy as hitting the 'buy now' button. Here, you will find simple profiles, pricing, and search functions to pick the right candidate in no time.


Build remote teams


At Gegidze, we're well-known in the Caucasus for our top-notch staffing solutions. We make it easy for you to hire remote employees and create dedicated teams. We'll guide you in putting together a team that's just right for your project, offering access to the finest local talent.



Contractors vs. full-time employees in Turkey


In Turkey, full-time employees enjoy comprehensive legal protections, including job security, minimum wage, paid leave, and social security benefits, which contractors, being self-employed, lack. While full-time employees have taxes and social security contributions handled by their employers, contractors must manage these responsibilities themselves.


Contractors have more work flexibility but lack the job security and benefits that full-time employees receive.


This fundamental difference also extends to long-term career prospects, with full-time roles offering more opportunities for advancement compared to the project-based nature of contracting. Understanding these distinctions is vital for informed decision-making in the Turkish workforce.



Contractors vs. Full-time Employees


Temporary Work Contract


In Turkey, temporary work contracts are used for specific projects or periods. These contracts are distinct from indefinite contracts as they have a set end date. They're often used for seasonal work or specific projects. The law ensures that these contracts can't be used consecutively unless there's a fundamental reason.



Employment in Turkey


Full-time employment contract/indefinite contract


The most common type of employment contract in Turkey is the indefinite contract. This contract doesn't have an end date and is used for permanent roles, offering stability and full employee benefits.


Part-time employment contract


Part-time contracts in Turkey are for those who can't commit to full-time hours. These contracts have significantly fewer weekly working hours than full-time contracts.


On-call job and project-based employment


On-call and project-based work in Turkey involves agreed-upon hours for specific projects. This type of work is flexible and suits jobs that don't need a regular schedule.


Hiring in Turkey


Hiring in Turkey involves navigating a set of practices and regulations that reflect the country's unique labor laws and cultural nuances. The Turkish labor market is regulated to ensure fair treatment of employees, which means employers must be well-versed in the legal framework to comply with these standards.


Hire, pay, and manage your talent in one click


At Gegidze, simplifying talent management in Turkey has never been more convenient. Thanks to cutting-edge technology and digital tools, you can now effortlessly hire, pay, and oversee your team in Turkey with just a click.


Our streamlined solution is tailored for efficiency in the fast-paced business landscape, ensuring that HR tasks are not only simpler but also more effective.

But wait, there's more. Gegidze offers a comprehensive solution to meet your business needs seamlessly – from hiring to payment and team management, all achieved with a single click. The process is designed to be user-friendly and time-efficient, aligning perfectly with the demands of today's dynamic business world.



gegidze


Employment agreement in Turkey


Employment agreements in Turkey define the terms of work, including job roles and pay. These agreements can have a probation period of up to two months, extendable to four months in some cases.



Probation & Termination


In Turkey, probation and termination of employment are governed by specific legal regulations that both employers and employees need to understand.



Probation Period


The probation period in Turkey is a trial period that can last up to two months. This period allows both the employer and employee to evaluate the job fit.



Termination of Service


In Turkey, employment can be ended through ordinary or extraordinary termination. Ordinary termination needs a written notice with the reason, while extraordinary termination can happen under urgent situations.


Understanding these aspects of employment in Turkey is crucial for businesses and individuals. Following these regulations is important to ensure fair and legal employment practices.



EOR Solution in Turkey


Payroll outsourcing through an Employer of Record


In Turkey, Employer of Record (EOR) solutions, akin to international PEOs, facilitate rapid hiring and onboarding of workers, often in a matter of days. These solutions manage a broad spectrum of HR tasks, including payroll, local tax compliance, administration, visa requirements, and mobility needs. This service is particularly beneficial for companies expanding into Turkey, offering a streamlined approach to managing local employment responsibilities. 



EOR solutions in Turkey


Types of visas in Turkey


Short-term visa


For foreigners aiming to stay in Turkey beyond 90 days, the "Short Term Residence Permit" is required. This permit is essential for extended stays and must be obtained through the Provincial Directorate of Migration Management in Turkey. 


Turkey tourism visa


Tourism visas for Turkey are available as three-month multiple-entry e-Visas. These can be obtained online or through Turkish diplomatic missions abroad. This visa category is designed for tourists and short-term business visitors.


Turkey education visa


Students planning to study in Turkey need to secure a student visa from the nearest Turkish Republic Consulate. This process involves various documentation and can be time-consuming, so early application is advised.


Turkey work visa


A work visa, accompanied by a work permit, is mandatory for foreign nationals seeking employment in Turkey. This visa category is tailored for individuals who have secured employment in Turkey and requires coordination with the prospective employer. 


Turkey transit visa


Transit visas are required for travelers passing through Turkey en route to another destination. This visa is obligatory for travelers who need a visa to enter Turkey and are transiting through the country.


Other visas


Turkey also offers a range of other visas, including Official Visas for those assigned for duty, Student/Education Visas for internships, and Working Visas for specific employment sectors. These visas cater to a variety of purposes and require specific documentation based on the nature of the visit or assignment.



Work permits


Permanent work permit


In Turkey, foreigners who have a long-term residence permit or have legally worked for at least eight years are eligible to apply for a permanent work permit. This permit allows them to work indefinitely within the country.


Temporary work permit


Temporary work permits in Turkey are granted for specific employment durations. Foreigners must apply for this permit as soon as they receive a job offer in Turkey. The application should ideally be made two months before the intended start date of employment.


Independent work permit


Foreigners in professional occupations may be granted independent work permits for a limited period, provided they meet specific conditions. For example, they should have resided in Turkey legally and uninterruptedly for at least five years and their work should positively impact employment in Turkey.


Turquoise cards


The Turquoise Card is a special residence permit issued to highly qualified workers such as investors, businessmen, scientists, and others who are deemed to contribute significantly to Turkey's economy, science, technology, or culture. The card is initially valid for three years and can be converted into a permanent card. Cardholders can apply for Turkish citizenship after three years.


These work permit categories in Turkey cater to a diverse range of employment scenarios, from temporary and independent work to permanent employment and special qualifications under the Turquoise Card system. Each category has specific eligibility criteria and application processes, tailored to the needs of the Turkish labor market and the qualifications of foreign workers.



Payroll & Taxes in Turkey


Payroll in Turkey


In Turkey, companies typically process payroll monthly. Employees receive their salaries for work done from the beginning to the end of each month, usually on the last day. This system ensures a consistent and predictable salary schedule for employees.


Taxes in Turkey


Turkey's tax system is designed to be comprehensive and fair, taxing residents on their worldwide income and non-residents only on income earned within Turkey. This approach balances the tax burden between domestic and international income sources.


Personal income tax


Personal income tax ranges from 15% to 40%. In Turkey, personal income tax rates vary between 15% and 40%. This progressive tax structure means that individuals with higher incomes pay a larger percentage in taxes, ensuring a fair contribution based on earning capacity.


Social security contributions for employers and employees


Employers in Turkey contribute 20.5% of gross salaries to social security, while employees contribute 14%. These contributions fund essential social benefits like pensions and healthcare.


Corporate tax


Corporate entities in Turkey face a standard corporate income tax rate of 25%. This rate applies across various sectors, ensuring that corporations contribute significantly to the national economy.


Value-added tax (VAT)


VAT in Turkey varies, with a standard rate of 18% and reduced rates of 8% and 1% for certain goods and services. This tiered approach aims to make essential items more affordable.


Tax returns


The tax year in Turkey aligns with the calendar year, requiring annual tax returns to be filed by March 31 of the following year. This system simplifies the tax filing process for individuals and businesses.


Inheritance tax


Inheritance tax in Turkey ranges from 1% to 30%, based on the value of the inheritance and the relationship between the deceased and the beneficiary. This progressive rate structure ensures fairness in the taxation of inherited wealth.


Gift tax


Similar to inheritance tax, gift tax in Turkey ranges from 1% to 30%, payable over three years. This allows for manageable payment of taxes on gifts received.


Financial year 


The financial year in Turkey follows the calendar year, starting on January 1st and ending on December 31st. This alignment facilitates financial planning and reporting.



Incorporation: how to set up a subsidiary in Turkey



How to Set Up a Subsidiary in Turkey


Turkish limited liability company 


Creating an LLC in Turkey involves a straightforward procedure. Up to 50 shareholders are allowed, and foreign ownership is fully permitted. The key steps include preparing and notarizing necessary documents, registering with the Turkish Trade Register, and opening a corporate bank account in Turkey. This type of company is suitable for small to medium-sized enterprises looking for a presence in the Turkish market.


Joint venture companies


Joint ventures in Turkey can be established either as a formal commercial entity or as a simple partnership. This flexibility makes it an attractive option for businesses collaborating on specific projects or exploring new market opportunities in Turkey.


Joint stock companies


Setting up a JSC in Turkey requires one or more individuals or entities and a minimum capital of 50,000 Turkish Lira. There's no limit on the number of shareholders. JSCs are ideal for larger businesses or those planning significant investments in Turkey, offering robust structure and growth potential.



Professional Employer Organization (PEO)


A PEO helps small and medium-sized businesses with HR tasks. This teamwork involves sharing responsibilities like handling employee benefits, taxes, payroll, making sure things follow the rules, managing HR stuff, training new employees, and hiring. The PEO model lets companies handle HR jobs well, so they can focus on their main business without getting too caught up in HR complications.


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