As Turkey continues to grow as a strategic business hub bridging Europe, Asia, and the Middle East, more international companies are looking to establish a local presence or hire Turkish talent. With a young, skilled, and cost-competitive workforce, Turkey offers great opportunities—but also a complex regulatory environment.
In this comprehensive guide, we’ll walk you through the step-by-step process of hiring employees in Turkey as a foreign company, including legal requirements, employment contracts, taxes, and strategic hiring models like Employer of Record (EOR).
1. Understand the Legal Framework for Employment in Turkey
Before hiring employees in Turkey, it’s crucial to understand the local labor laws. The Turkish Labor Law (Law No. 4857) regulates the employment relationship between employers and employees.
Key principles include:
- Mandatory written employment contracts
- Maximum working time: 45 hours per week
- Overtime pay for hours exceeding the legal limit
- Paid annual leave, starting from 14 days per year
- Social security registration with SGK (Social Security Institution)
Foreign employers must comply with these regulations even if they don’t open a Turkish legal entity.
2. Decide on Your Hiring Structure
a. Set Up a Legal Entity in Turkey
One option is to establish a local subsidiary or branch office in Turkey. This gives you full control over recruitment and operations but comes with legal, tax, and administrative responsibilities.
You’ll need to:
- Register your company with the Turkish Trade Registry
- Obtain a tax number
- Open a bank account
- Register with the Social Security Institution (SGK)
b. Hire via an Employer of Record (EOR)
For companies that want to hire quickly without setting up a local entity, an Employer of Record (EOR) is the best solution. An EOR acts as the legal employer on your behalf in Turkey, managing:
- Payroll and taxes
- Employment contracts
- Benefits and compliance
- Work permits (if hiring expatriates)
This model reduces your risk and ensures full compliance with Turkish law.
3. Register with the Social Security and Tax Authorities
All employees in Turkey must be registered with the SGK (Sosyal Güvenlik Kurumu) before they start working.
As an employer, you must:
- Report new hires within one day before their employment begins
- Pay social security contributions (around 22.5% of gross salary)
- Deduct and remit employee contributions (around 15%)
You’ll also need to manage income tax withholding, which is deducted from the employee’s salary and paid to the Turkish tax office.
4. Draft a Compliant Employment Contract
Employment contracts in Turkey can be fixed-term or indefinite, and must be written if the employment exceeds one month.
Key clauses should include:
- Job title and description
- Start date and duration
- Working hours and location
- Salary and benefits
- Termination conditions
- Non-compete or confidentiality clauses (if applicable)
Contracts should be in Turkish, and a dual-language version is often used when working with foreign employers.
5. Comply with Work Permits (if Hiring Foreigners)
To hire non-Turkish nationals, you must apply for a work permit through the Ministry of Labor and Social Security. This process usually takes 4–6 weeks and requires:
- An employment contract
- A justification for hiring a foreigner over a local
- Company documents (trade registry, balance sheets)
Some categories of workers (e.g., engineers, teachers, domestic staff) may have additional requirements. Note that work permits are job- and employer-specific.
6. Define Salary and Benefits Packages
a. Minimum Wage
As of 2025, Turkey’s gross minimum wage is 17,002 TRY per month. All employees must be paid at least this amount.
b. Benefits
While private benefits are optional, most employers offer:
- Private health insurance
- Meal vouchers or allowances
- Transportation assistance
- Bonuses (not mandatory but common in corporate settings)
7. Set Up Payroll and Tax Withholding
Payroll in Turkey must comply with both income tax and social security regulations.
- Income Tax: Progressive rates from 15% to 40%
- Social Security Contributions:
- Employer: ~22.5%
- Employee: ~15%
Most companies use a payroll provider or partner with their EOR to manage local payroll processing, especially if they lack Turkish-speaking HR staff.
8. Respect Working Hours, Holidays, and Leave
a. Working Hours
- 45 hours per week (typically 9 hours/day, 5 days/week)
- Overtime must be compensated at 150% or replaced with extra time off
b. Annual Leave
- 14 to 26 days depending on seniority
- Employees must complete 1 year of service to access paid leave
c. National Holidays
Turkey observes 14 public holidays, including Republic Day, Ramadan, and Eid holidays.
9. Handle Terminations Properly
Termination procedures are regulated strictly in Turkey. If you dismiss an employee:
- Provide a valid reason (for indefinite contracts)
- Give notice: 2 to 8 weeks depending on tenure
- Pay severance: 1 month’s gross salary per year worked (after 1 year of service)
- Register the termination with SGK
Failure to follow the correct process can result in labor court disputes.
10. Find the Right Talent Channels in Turkey
To recruit top talent in Turkey, consider these local platforms:
- Kariyer.net – leading job board
- LinkedIn – widely used by Turkish professionals
- İşkur – government job portal
- Tech and IT communities – like Stack Overflow Turkey, Meetup, or GitHub
You can also work with local recruitment agencies or EOR partners who specialize in sourcing and hiring Turkish professionals.
Hire in Turkey the Right Way
Hiring employees in Turkey offers numerous advantages—access to a skilled labor force, competitive wages, and a strategic location for global business. But to do it legally and efficiently, you must comply with Turkish labor law, tax requirements, and employment procedures.
Whether you set up a local entity or use an Employer of Record, partnering with experienced local HR and legal professionals ensures smooth and compliant hiring.
Looking to hire employees in Turkey without the hassle of setting up a company?
Contact us today to learn more about our EOR and recruitment services in Turkey. We’ll help you onboard top talent quickly and compliantly.
