EOR Service in Turkey

Hire, Onboard and Pay Employees in Turkey Quickly and Efficiently

Hiring in Turkey at a glance

CURRENCY
Turkish Lira (TRY)
working hours
45 hours per week
public/bank holidays
9 Days
capital
Ankara
language
Turkish
date format
DD.MM.YYYY
remote workers
1.2M
tax year
Jan to Dec
minimum hourly salary
No minimum wage
CURRENCY
Turkish Lira (TRY)
working hours
45 hours per week
public/bank holidays
9 Days
capital
Ankara
language
Turkish
date format
DD.MM.YYYY
tax year
Jan to Dec
payroll frequency
Monthly
GDP
€797.93B (2021 estimate)

Employer of Record in Turkey

An Employer of Record (EOR) in Turkey allows you to hire employees in Turkey without having to set up a local company there. By teaming up with an EOR, you can quickly tap into the talent pool in this European country. The EOR acts as the official employer, taking on all the legal responsibilities, while you focus on managing the employee's daily work.

Why use Turkey EOR?

Using an EOR/PEO in Turkey offers significant advantages for companies looking to hire local talent without the complexities of opening a legal entity. Setting up a company in Turkey can be time-consuming, taking several months, and requiring a considerable amount of capital investment.

Turkey's labor laws also present challenges with specific regulations on minimum wages, maternity laws, and the influence of labor unions. Staying compliant with these laws can be daunting for foreign companies. For example, Turkey’s minimum wages are sometimes revised biannually. Turkey’s laws are also protective of its employees when it comes to severance pay. Employees with at least a year of service are entitled to severance pay if terminated without cause. 

By using an EOR/PEO in Turkey, companies can focus on recruiting and retaining valuable talent without getting bogged down by legal complexities, enabling them to compete more effectively in the local market and seize opportunities quickly.

EOR Costs in Turkey

In Turkey, EORs/PEOs typically offer similar pricing options to those in Portugal. Companies can choose between a fixed monthly fee per employee or a percentage of the employee's payroll along with applicable taxes. Additional charges may apply for onboarding, administrative tasks, or any extra features that the company may require.

This pricing flexibility and the ability to avoid the complexities and time-consuming process of setting up a legal entity in Turkey makes partnering with an EOR/PEO an attractive option for companies looking to expand their workforce in the country quickly and efficiently.

Key Metrics For Foreign Employers

Turkey, a diverse and dynamic country bridging Europe and Asia, offers numerous advantages for businesses and professionals alike.

The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Turkey.

Factors Global Ranking Interpretation
Rule of law 84 Indicates effectiveness of law enforcement
Labour-employer cooperation 115 Indicates positive labor-employee relationships
Reading Maths, and Science 40 Indicates average scores in OECD's survey of 15-year old students
University Ranking 48 Indicates average QS rankings
Labour productivity per employee 27 Indicates total output by the total labor input used to produce that output
Ease of finding skilled employees 51 Indicates findability of skilled talent
Workforce with tertiary education 55 Indicates % of workforce with PG degrees
Digital Skills 60 Indicates prevalence of advanced digital skills in the population

Source: The Global Talent Competitiveness Index 2022

Through the Gloroots’ Recrew platform, you can discover amazing talent in Turkey

Why work in Turkey?

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Grow your team in Turkey

Growing your team in Turkey involves hiring the right employees for your business at the right time and for the right roles. However, setting up a local legal entity in Turkey and managing compliance, payroll, tax, and benefits can be complex and time-consuming.

With Gloroots's global Employer of Record (EoR) service, you can entrust the heavy lifting of payroll, tax, benefits, and compliance to Gloroots, allowing you to focus on what truly matters: your employees and the growth of your company. Gloroots will take care of all the administrative tasks and ensure that your employment practices align with Turkey's regulations and laws.

By leveraging Gloroots's EoR service, you can streamline the hiring and onboarding process in Turkey, access a pool of talented professionals, and expand your team with ease. This way, you can concentrate on building a successful team and thriving business without getting bogged down by the complexities of local employment regulations.

Risks of misclassification

In Turkey, the risk of "employee misclassification" is also a concern for employers. This occurs when workers are improperly classified as independent contractors or freelancers, but they perform duties similar to those of regular employees. Misclassification can lead to legal and financial consequences for businesses, as it may result in the denial of employment rights and benefits that should be provided to permanent employees.

To mitigate the risks of misclassification, partnering with a Professional Employer Organization (PEO) or Employer of Record (EOR) in Turkey is a wise choice. These experienced professionals understand the intricacies of Turkish labor laws and can ensure accurate worker classification and proper preparation of employment agreements.

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Employing in Turkey

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Tax

Tax and Social Security contribution:

Income Tax

Income Range Tax Rate
0 - 70,000 15.00%
70,000 - 150,000 20.00%
150,000 - 370,000 27.00%
370,000 - 1,900,000 35.00%
1,900,000 and above 40.00%

Social security and other tax

Contribution Type Rate
Short-Term Insurance Branch Premium 2.00%
Pension & Disability 11.00%
General Health Insurance 7.50.%
Unemployment Insurance 2.00%
Total Employment Cost 22.50%

Contribution Type Rate
Pension & Disability 9.00%
General Health Insurance 5.00%
Unemployment Insurance 1.00%
Total Employee Cost 15.00%

Separation

Employment Termination

The process of termination differs depending on the specific terms of the employment agreement and any existing collective agreements. It also takes into account the type of contract and the reason for the termination.

Notice Period

In Turkey, the length of the notice period is determined by the employee's duration of service as follows:

Duration of service Notice period
0 to 6 months of service 2 weeks
6 to 18 months of service 4 weeks
18 to 36 months of service 6 weeks
More than 36 months of service 8 weeks

Severance pay

In Turkey, employees who have worked for more than one year and were unfairly dismissed or resigned for just cause are eligible for severance pay. According to Turkish Labor Law, employees become entitled to severance pay after completing one year of service with the same employer.

The calculation of severance pay is based on the monthly gross wage multiplied by the number of completed years of employment. Any remaining months and days of service are also included in the calculation. There is a ceiling amount set for the gross wage, which includes the seniority basis wages.

This severance pay ceiling is regularly updated and is currently determined as the retirement bonus of the highest civil servant. It is adjusted twice a year in line with the salary hike of civil servants.

As of 01.01.2023 – 30.06.2023, the seniority ceiling for severance pay is set at a gross amount of 19,982.83 TRY. Employees who have been terminated and are entitled to severance pay should have their calculation based on this seniority ceiling.

Probation period

In Turkey, probation or trial periods are typically specified in the employee's employment contract, with the standard practice being two months. During this probationary period, no notice period is required for termination.

Start Hiring in Turkey today

When expanding your hiring efforts globally, ensuring compliance can be a significant challenge. There are various aspects to consider, such as employment laws, payroll procedures, diversity, equity, and inclusion (DE&I) compliance, GDPR, and data protection regulations. Establishing infrastructure and initiating the hiring process can be time-consuming, and staying updated on the constantly evolving compliance landscape adds another layer of complexity.

At Gloroots, we are dedicated to simplifying these challenges for you. Our comprehensive solutions offer a single platform to efficiently manage all your hiring tasks. With our in-house experts, you can have peace of mind as they protect you from cross-border employment and payroll compliance risks. They will assist you in generating employment contracts, ensuring timely payments, and providing compliant benefits, while you can focus on talent screening and selection.

Our commitment is to provide you and your employees with a stress-free global employment experience.

Contact our experts today to kickstart your global hiring campaign in Turkey and tap into the abundant talent this dynamic country has to offer.

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Experience Seamless Hiring in Turkey?

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