Employer Of Record in Turkey

We make it easy and painless to expand your business into Turkey. Forget about dealing with local regulations, confusing tax laws and international payroll management. We take care of all that so you don't have to.

Accelerate your growth into Turkey Compliantly and hassle-free

At Serviap Global we handle all employee onboarding, payroll, compliance, risk, mitigation and benefits, so you can focus on what matters most – your business.

How we can help you expand in Turkey

As your EOR in Turkey we’d help you expand by hiring employees and running their payroll without establishing a local branch office or subsidiary. 

Your candidate is hired by a PEO in Turkey provider in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. Shortly after, your new employee will be working for you, just like any other member of your team. 

Expand to Turkey with Serviap Global

Through our PEO and EOR services, you can hire qualified talent in your industry without the trouble of opening your own legal entity. 

In just a few days, you can easily and safely build a presence in Turkey being sure that your staff will be hired in compliance with labor and tax regulations.

Table of Contents

Quick Facts

Currency:
Turkish Lira (TRY)

Capital:
Ankara

Payroll Cycle:
Monthly

Language(s):
Turkish

Turkey Country Facts

Turkey is located in Western Asia and Southeastern Europe and people settled here very early in history. Making it at one time inhabited by ancient civilizations. The country became fully independent in 1922 following World War I.

Turkey became a modern country as it is today following liberalized economic procedures that took place during the 1980s. It’s now known as an industrialized country and a regional power, based a lot on its strategic location.

The Economy

The economy of the UAE has exploded in the last 50 years. Economic growth in this time has been monumental. Growth for the average real GDP was nearly 4% between the years of 2000 and 2018. Since the country gained independence in 1971, its economy grew almost 231 times, reaching 1.45 trillion AED in 2013.

The country has the seventh-largest oil deposits in the world. But, there’s also been significant investment from foreign entities that have fueled high-tech industries, tourism and infrastructure.

The Importance of Small and Medium-sized Companies

Small and medium-sized companies (SMEs) are extremely important to the Turkish economy. In fact, there are roughly 3.2 million SMEs active in the country, which represents 99.8% of all the business entities that are registered in Turkey. SMEs employ 73.8% of all employees in the country.

Population Characteristics

Nearly three-quarters of all people live in cities and towns throughout Turkey. The population density is roughly 97 people per square kilometer, and the population is increasing at a rate of 1.35% annually. The Turkish population is relatively young, with only 7.3% 65 years old or older. People between the ages of 15 and 64 make up 67.4% of the total population, with children 14 and under making up 25.3% of the population.

Economic Opportunities

The Turkish economy has slowed down in recent years, which has stunted some growth and opportunities for foreign investment. That said, the country is working to diversify certain sectors such as energy, information technology, health care and manufacturing.

Key Sectors of the National Economy

Turkey has the 20th largest economy in the world according to nominal GDP and the 11th largest by PPP. It’s considered one of the Emerging 7 countries.

Turkey has a large automotive sector, ranking as the 14th largest producer of cars in the world. They also have large sectors in construction, electronics, oil refining, food, iron, steel, mining and home appliances.

Human Talent
Students in Turkey are focused on STEM fields (science, technology, engineering, and mathematics). Nearly 17% of all graduates from the country are in STEM fields, which is the same percentage as that in Australia and the United States, and more than that from Brazil (16%).

Ankara, a high-tech capital

Ankara, the country’s capital, is a high-tech city that grows every year. The level of culture based on research is helping to fuel the city’s boom. There are six technology parks in the city, with the oldest being Technopolis, which is located in the Middle East Technical University. It started in 2001 and today houses more than 250 tech companies.

Technological Ecosystem

Turkey has a strong sense of tech entrepreneurship, and it comes to light in SaaS, content and e-Commerce businesses. The government has been committed to helping spur innovation and has done so through various initiatives and strategic plans for the IT sector.

Facilities for Foreign Investment

According to the 2020 Ease of Doing Business Report published by the World Bank, Turkey ranks 33rd in the world. The country has worked hard to reduce the amount of time it takes to register a business, while also exempting the VAT tax for certain capital investments. It’s been much easier for entrepreneurs to start a venture in the country in recent years, and they’ve made it easier to pay taxes as well.

Business Culture in Turkey

Turkish people rely on set meeting times. It’s very important to set your meetings well in advance, and pay attention to the Turkish holidays. When setting meetings, it’s important to send the details of the meetings to all the people who are going to be involved. The society is based around Islam, so make sure that the meeting time takes into consideration daily prayer times, which happen five times a day.

Meetings are typically formal, so make sure to dress and act that way. Also, prepare for initial meetings to be a get-to-know-you stage, with multiple meetings required to get business done.

Turkey Gastronomy: regional and traditional cuisines

Much of Turkish cuisine dates back to Ottoman cuisine. It’s a mix of Balkan, Central Asian, Middle Eastern and Mediterranean cuisines. The cuisine varies in parts of the country. Olive oil is a huge product in the country, and there are sections that are rich in herbs, vegetables and fish.

General Highlights

Year2022
CountryTurkey
CapitalAnkara
Num. States / Province81 provinces/957 districts
Principal Cities

Istanbul Ankara Izmir Bursa Antalya Adana

Konya

LanguageTurkish
Local CurrencyTurkish Iira (TRY)
Major ReligionIslam (82%)
Date FormatDD.MM.YYYY
Thousands Separator Format999,999,999.99
Country Dial Code+90
Time ZoneTime in Turkey (UTC +3)
Population83,614,362 (18th in the world)
Border CountriesNorth: Georgia and Armenia; East: Iran and Azerbaijan: South: Syria and Iraq; West: Bulgaria and Greece
Continental surface783,356 KM2
Fiscal YearJanuary 1 to December 31
VAT %18%
Minimum Wage2,850.50 TRY
Taxpayer Identification Number Name in the countryTax Identification Number (TIN)
Current PresidentRecep Tayyip Erdogan

What you need to know about employing personal in Turkey:

Laws and Agencies that regulate labor relationships

LawsBrief Description
Constitution of the Republic of TurkeyThe fundamental law that establishes the government’s organization and also sets all rules and principles for the conduct of the state and the responsibility of citizens.
Labor Act of 2003Sets all the rules and regulations for all employment in the country.
Tax Code LawThe law passed by the Turkish government that regulates all tax laws in the country
Social Security Institution

The set of laws that regulate social security initiatives and benefits in the

country

Key Tax and Labor Authorities

The Ministry of Treasury and Finance

The government agency responsible for all tax and finance affairs in the

country.

Social Insurance LawFirst implemented in 1965, it provides social insurance to people living in Turkey

Labor Contracts

Turkish Labour Code (Labor Act No. 4857)The overall law that dictates the rules and regulations of all employment in the country.

 

Contracts

Employment contracts don’t have to be in writing. The exceptions are exclusive contracts such as collective bargaining agreements or fixed- term contracts.

 

 

Work Hours

Work hours cannot exceed 11 hours each day or 45 hours each week.

 

All workers must be given at least 24 uninterrupted hours of rest each week.

Probation PeriodEmployers can have a probation period of up to two months.

Payroll

Payroll must be paid on a regular basis, often monthly, and it must be made in local currency and cash.

Legal Benefits in Turkey
• Paid time off
• Minimum wages
• Cash allowances
• Company cars
• Private healthcare
• Meal vouchers

Minimum Wage2,750.50 TRY
WagesEmployers must pay employee wages in cash on a monthly basis. It must be paid in the local currency.

 

 

Overtime

Any hours worked above 11 in one day or 45 in a week must be paid at 50% higher than the normal wage.

Employers can also opt to give out paid time off at the rate of 1.5 hours for every hour of overtime worked.

 

 

 

Vacations or PTO

Minimum holiday entitlement is based on the number of years worked.

•       1-5 years of service: 14 days off

•       5-15 years: 20 days

•       15+ years: 26 days

•       Employers who perform work underground must get an additional 4 days off.

Leaves of Absence

Employees have the right to paid absences for the following things:

 

Sick pay: Employees who are ordered by a doctor to rest due to sickness are excused from work and receive their full wages.

Employers Contribution or Labor Cost

Employers are subject to taxes and other costs for having employees. Employers cannot recover these costs.

Annual Taxable Income

Over this amountNot over this amountTax % on Excess
024,00015%
24,00053,00020%
53,000190,00027%
190,000650,00035%
650,000 40%

Corporate Tax Rates

Corporate tax is only levied on foreign banks and oil companies. There are also 45 free zones within the coun- try. Additionally, businesses registered here can be exempted from all taxes for a certain period of time.

IndustryTax Rate

Based on net profits after deductions and

exemptions

23%

Types of Disabilities

Turkey provides both permanent and temporary disability benefits for those who may be injured while on the job. Employers pay the contributions entirely, between 1.5% to 7% of their total payrolls. Benefits are paid at either two-thirds or one-half of pay if hospitalization was required. Permanent disability benefits are estimated from the “loss of working capacity.”

Maternity Leave
Pregnant women can receive two-thirds of their daily earnings on average for the eight weeks before and after they give birth. They are also eligible to receive pregnancy, birth and nursing benefits that are paid in a lump sum. These benefits will increase for multiple births, such as triplets and twins.

Public Holidays

DateHoliday Name
January 1New Year’s Day
April 23National Sovereignty and Children’s Day
May 1Labour Day
May 19Commemoration of Ataturk, Youth and Sports Day
August 30Victory Day
October 29Republic Day of Turkey

Termination

The Labor Code outlines rules for termination of an employment contract:

Type of TerminationBrief Description

 

No cause

Employment contracts with an indefinite period require notice given by the

employer.

 

Contracts that are for definite periods automatically terminate at the end

of the contract period.

Cause

Employers that have at least 30 workers have to provide a reason for termination based on either the worker’s inability to do the job or on business necessities.

Other forms of compensation upon termination include
Severance pay grades are based on the following table

Length of Employment

Severance Amount

Each full year of employment

30 days of full pay

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