Employer of Record in Turkey

An Employer of Record in Turkey legally employs workers on behalf of a foreign company, handling all statutory obligations under Turkish law.

The specific compliance requirements include SGK (Social Security Institution) registration, KVKK data protection compliance, and accurate severance accrual under Labor Law No. 4857. Each carries real liability if mishandled.

• Hiring speed: EOR gets workers on payroll in days; entity setup takes 4 to 8 weeks
• Employer SGK contribution rate: approximately 22.5% of gross salary
• Standard notice period: 2 to 8 weeks, depending on tenure
• 2026 minimum wage: TRY 33,030 per month gross

This page covers Turkish employment law, payroll rules, contractor risk, and how an EOR operates in Turkey, organized by topic for quick reference.

Gloroots is an Employer of Record provider. This guide presents the full picture so readers can decide which employment path fits their situation. We include Gloroots-specific detail where relevant and label it clearly.

What Is an Employer of Record in Turkey?

An Employer of Record in Turkey is the legal employer on record under Turkish law, responsible for employment contracts, payroll tax filings, SGK registration, and statutory benefits on behalf of a client company. To understand how does EOR work in practice, the mechanics are straightforward.

Foreign companies, scale-ups, and businesses testing the Turkish market use an EOR to employ workers without registering a local entity.

The workflow runs in a defined sequence: the client selects a candidate, the EOR issues a compliant Turkish-language employment contract, registers the worker with SGK, runs monthly payroll with income tax withholding at progressive rates, and manages day-to-day HR administration while the client directs the employee's work.

Your Hiring Options in Turkey: EOR vs. Entity vs. PEO vs. Contractor

Companies hiring in Turkey have four main paths: using an Employer of Record, registering their own legal entity, working with a PEO, or engaging independent contractors. Each path carries different setup timelines, compliance obligations, and cost structures.

An EOR suits companies that need to hire quickly without entity investment. An own entity fits long-term, high-headcount operations. A PEO requires an existing local entity. Contractors work for short, project-based engagements with clearly independent working arrangements.

Contractor engagements carry real risk in Turkey. Labor courts look at the substance of the working relationship, not the contract label. Misclassification can trigger retroactive SGK contributions, severance liability, and administrative fines. Gloroots EOR services remove that exposure by employing workers compliantly from day one.

Path	Setup Time	Compliance Ownership	Cost Structure	Best For
EOR	2 to 5 days	EOR provider	Monthly per-employee fee	Fast market entry, no entity
Own Entity	4 to 8 weeks	Employer	Legal, accounting, HR overhead	Long-term, large headcount
PEO	Requires existing entity	Shared	Per-employee fee plus entity costs	Companies with a registered entity
Contractor	Days	Contractor	Invoice-based	Short-term, genuinely independent work

How to Hire in Turkey Through an EOR: Step by Step

Hiring through an EOR in Turkey follows a defined sequence. Each step has a specific compliance action tied to Turkish law.

Step 1: Decide Between EOR and Own Entity

Choose an EOR when you need to hire in Turkey within days, have fewer than 10 employees, or are testing the market before committing capital. Choose an own entity when headcount exceeds a level that makes the TRY 50,000 minimum capital and ongoing accounting costs cost-effective relative to monthly EOR fees.

Step 2: Vet and Select a Turkey EOR Provider

Verify that the provider operates an owned legal entity in Turkey, holds active SGK registration, can demonstrate KVKK compliance capability, and issues employment contracts in Turkish as required by Labor Law No. 4857.

Step 3: Draft a Compliant Employment Contract

The contract must specify the role, salary in TRY, and working hours. Turkish law caps hours at 45 per week and 11 per day. Include annual leave entitlements, termination conditions, and a KVKK data consent clause.

Step 4: Register with SGK and Tax Authorities

Register the employee with SGK before their first working day. File income tax registration with the Turkish Revenue Administration. Employees under 45 must be auto-enrolled in the BES private pension scheme.

Step 5: Run Compliant Payroll

Payroll runs monthly. Withhold income tax at progressive rates and deduct SGK contributions from each payslip. Remit payroll taxes and SGK payments to authorities by the 26th of the following month. Issue a detailed payslip to every employee.

Step 6: Manage Offboarding and Exit

Notice periods are calculated by tenure under Labour Law No. 4857. Pay kıdem tazminatı (severance) at 30 days gross salary per year of service. Deregister the employee from SGK and settle the final payroll, including payment for any unused annual leave.

How to Choose the Right EOR in Turkey

Selecting the right provider requires evaluating several operational and legal criteria before committing. Use the factors below to compare options.

Key criteria for evaluating an EOR in Turkey

• Local legal knowledge: The provider must demonstrate working knowledge of Labour Law No. 4857, SGK rules, KVKK, and BES obligations. Generic global coverage is not sufficient.
• Owned entity vs. partner network: An owned Turkish entity gives the provider direct control over employment contracts, payroll filings, and SGK registrations. A partner network adds intermediary risk.
• Support model: Confirm whether the provider assigns a named account owner or routes queries through a shared inbox. Human-led operations reduce resolution time on compliance issues.
• Pricing transparency: Request a full cost breakdown covering the EOR fee, statutory contributions, and any per-employee charges. Review the best employer of record comparison for benchmarking guidance.
• Data security and KVKK compliance: The provider must process employee personal data in line with Turkey's Personal Data Protection Law (KVKK). Confirm data residency and processing agreements.
• Platform integration capability: The provider's system should connect with your existing HRIS or finance tools to maintain centralized governance across your workforce.

Local Legal Knowledge in Turkey

An EOR operating in Turkey must demonstrate direct knowledge of Labour Law No. 4857, SGK contribution rules, KVKK data protection obligations, and BES auto-enrolment requirements. General international experience does not substitute for country-specific legal expertise.

Owned Entity vs. Partner Network

A provider with a wholly-owned Turkish entity handles SGK registration directly and carries full employer liability. Partner-network models add intermediaries, which can create gaps in compliance accountability.

Support Model and Response Times

Confirm that your provider offers Turkish-language support for employees and HR teams. Ask for a documented response SLA, including escalation paths for payroll and SGK queries.

Pricing Transparency

Request all-in pricing that covers SGK employer contributions, severance accruals, and BES enrolment costs. Quotes that exclude statutory costs create budget risk at payroll run time.

Data Security and KVKK Compliance

Confirm that your provider holds KVKK-compliant data processing agreements covering employee personal data. Cross-border transfer clauses are required when payroll data leaves Turkey.

Platform Integration Capability

Confirm that your provider integrates with your HRIS and payroll systems before signing. Missing integrations force manual reconciliation, which increases error risk and payroll processing time.

Workforce and Talent Pool in Turkey

Turkey has a workforce of approximately 34 million employed individuals, with a median age of around 33 years, making it one of the younger workforces in the EMEA region.

Istanbul leads hiring activity in finance, technology, and logistics. Ankara concentrates government, defense, and R&D roles. Izmir, Bursa, and Kocaeli anchor manufacturing and automotive sectors.

Turkish professionals are known for strong technical skills in engineering and IT. English proficiency is common in white-collar roles, particularly in Istanbul. Salary costs remain competitive relative to Western Europe, making Turkey an attractive hiring destination for companies also considering markets such as employer of record Germany.

Metric	Details
Workforce Size	~34 million employed individuals
Median Age	~33 years
English Proficiency	Common in white-collar and tech roles
Top Talent Hubs	Istanbul, Ankara, Izmir, Bursa, Kocaeli
Key Industries	Manufacturing, Automotive, Finance, IT, Logistics

Employment Law Essentials in Turkey

Turkey's employment framework is set by Labour Law No. 4857. Contracts, working hours, leave, and termination all follow statutory rules that employers must apply from day one.

Employment Contracts

Contracts must be in writing for engagements longer than one year. The default type is indefinite-term. Fixed-term contracts are capped at two years without a justified reason. A KVKK data consent clause covering personal data processing is a mandatory contract element. Gloroots prepares compliant employment contracts for every hire in Turkey, covering all statutory requirements.

Working Hours and Overtime

The weekly cap is 45 hours and the daily cap is 11 hours. Annual overtime is capped at 270 hours. Written employee consent is required before overtime is assigned.

Minimum Wage

The 2026 gross minimum wage is TRY 33,030 per month. The net figure is TRY 28,075.50 per month. This rate applies from 01/01/2026 to 31/12/2026. The previous figure of TRY 20,002 per month was the 2025 rate and no longer applies.

Leave and Statutory Benefits in Turkey

Turkey's leave entitlements are set by Labour Law No. 4857 and the Social Security Institution (SGK). Employers must apply these rules correctly from the start of each employment relationship.

Annual Leave

Employees with one to five years of service receive 14 days. Five to fifteen years earns 20 days, and fifteen or more years earns 26 days. Employees under 18 or over 50 are entitled to a minimum of 20 days regardless of tenure. Annual leave pay must be paid in advance before leave begins.

Sick Leave

SGK covers sick leave from day three, paying 50% to 67% of wages depending on the type of illness. Sick leave exceeding six weeks may give the employer valid grounds for contract termination under Labour Law No. 4857.

Maternity and Paternity Leave

Maternity leave is 16 weeks for a single birth and 18 weeks for multiple pregnancies, fully paid by SGK. Paternity leave is 5 paid days.

After birth, employees have the right to reduce working hours on a part-time basis until the child starts primary school. SGK covers the maternity benefit directly, so the employer does not bear the wage cost during leave.

Public Holidays

Turkey observes 15 paid public holidays per year, covering national days and religious observances including Eid al-Fitr and Eid al-Adha.

Bereavement and Carer's Leave

Employees are entitled to 3 days of paid bereavement leave on the death of a spouse or close relative. This entitlement applies regardless of tenure.

Employees with a disabled child receive up to 10 days of paid carer's leave annually. Both entitlements are statutory and must be reflected in employment contracts.

Payroll, Tax and Statutory Contributions in Turkey

Turkey operates a monthly payroll cycle. Employers are responsible for calculating wages, withholding income tax, and remitting social security contributions to SGK.

Payroll tax must be remitted to the Turkish Revenue Administration by the 26th of the following month. Missing this deadline is a high-risk compliance event and can trigger penalties and audits. Employers should treat this date as a fixed compliance obligation, not an administrative target.

Additional statutory obligations include:

• BES (Private Pension System): Employers must contribute a minimum of 3% of earnings for employees under 45 years of age.
• Meal card exemption: Meal allowances paid via card are exempt from income tax up to TRY 170 per day.
• Severance accruals: Employers accrue kıdem tazminatı at 30 days of gross salary per year of service.

Note: Turkey's 2026 income tax brackets have been officially published and are effective 1 January 2026. The table below reflects these confirmed 2026 rates.

Turkey income tax brackets (2025)

Annual Taxable Income (TRY)	Tax Rate
Up to 110,000	15%
110,001 to 230,000	20%
230,001 to 870,000	27%
870,001 to 3,000,000	35%
Over 3,000,000	40%

Employer and employee statutory contributions

Contribution Type	Employer Rate	Employee Rate
Social Security (SGK)	20.5%	14%
Unemployment Insurance	2%	1%
BES (under 45)	3% minimum	3% minimum

Work Visas and Permits in Turkey

Foreign nationals require a valid work permit to be employed in Turkey. The Ministry of Labor and Social Security manages permit applications, and the type of permit depends on the role, duration, and the applicant's qualifications.

When a company uses an EOR like Gloroots, the EOR acts as the legal employer of record and sponsors the work permit on behalf of the foreign national. This removes the need for the client company to hold a registered Turkish entity to support the application. Gloroots manages the application, renewal, and SGK registration for each permit holder.

Work permit types in Turkey

Visa Type	Purpose	Validity
Short-Term Work Permit	Standard employment by a Turkish-registered employer	Up to 1 year, renewable
Long-Term Work Permit	Employees with 8+ years of legal residence and work	Permanent
Independent Work Permit	Self-employed professionals and entrepreneurs	1 year, renewable
Turquoise Card	Highly skilled professionals (similar to EU Blue Card)	Indefinite

Equity and ESOP Consulting in Turkey

Equity compensation is increasingly common in Turkey's growing tech and startup sector, particularly among Istanbul-based companies competing for senior talent.

Under Turkish tax law, stock options are taxed as employment income at the point of exercise. The progressive income tax rate applies to the spread between exercise price and fair market value. Cross-border equity grants add complexity: foreign parent companies must ensure grant documentation complies with Turkish contract law, and any personal data processed in connection with equity plan administration must meet KVKK (Personal Data Protection Law) requirements, including data transfer rules for plans administered outside Turkey.

Misclassification Risk in Turkey

Under Labour Law No. 4857, misclassifying an employee as an independent contractor exposes the employer to retroactive liability for contributions, severance, and statutory benefits.

Turkish courts look at the substance of the working relationship, not the contract label. A worker is treated as an employee when:

• The employer controls working hours, location, and the tasks performed day to day.
• The worker uses tools, equipment, or systems provided and owned by the company.
• The worker is integrated into the employer's organizational structure and reporting lines.
• The worker receives a fixed, regular salary rather than project-based or invoice-based payment.

Penalties for misclassification in Turkey include:

• Reclassification: the contractor is legally recognized as an employee with full retrospective effect.
• Back payments: the employer must pay unpaid SGK contributions, severance (kıdem tazminatı), and accrued leave.
• Administrative fines: labor inspectors can issue penalties for each month of non-compliant engagement.
• Litigation exposure: reclassified workers may file unfair dismissal claims, triggering court-ordered compensation.

Employing workers through Gloroots as an Employer of Record removes misclassification risk by establishing a compliant employment relationship from day one.

Hiring, Onboarding, Termination and Offboarding in Turkey

Hiring in Turkey requires compliance with Labour Law No. 4857 at every stage, from contract signing through SGK registration, and through to final settlement on exit.

The sections below cover onboarding phases, valid grounds and notice requirements for termination, and the documents and deregistration steps required during offboarding.

Onboarding

Before Day One

• Draft and sign a KVKK-compliant employment contract before the start date.
• Complete SGK registration at least one day before the employee's first day.
• Enrol the employee in the Private Pension System (BES) if they are under 45 years old.
• Set up payroll processing and income tax withholding with the Turkish Revenue Administration.

Day One

• Issue the bilingual (Turkish and English) employment contract and obtain signed acknowledgment.
• Provide workplace rules and a Labour Law No. 4857 orientation briefing.
• Issue company equipment and confirm asset records are logged.
• Verify and retain right-to-work documentation for the employee file.

First Week

• Complete occupational health and safety (OHS) training per sector-specific requirements.
• Appoint a certified safety specialist if the workplace size or sector requires one.
• Confirm BES enrolment and provide the employee with their enrolment confirmation.
• Complete benefits enrollment, including private health insurance and meal card if applicable.

Beyond

• Conduct a 30-day check-in to address early performance or integration concerns.
• Track the probation period end date, which is a maximum of two to four months.
• Confirm that a 10-year employment record retention system is in place.
• Schedule the annual OHS risk assessment before the statutory deadline.

Termination

Valid grounds for termination under Labour Law No. 4857 include economic redundancy, employee misconduct, and incapacity. Sick leave exceeding six weeks beyond the statutory notice period is also a valid ground. Standard notice periods range from two to eight weeks depending on tenure. For mass redundancies affecting more than 10% of the workforce, the employer must give 30 days' advance written notice to the relevant labor authority before proceeding. Employees who believe their dismissal was unfair must apply to mediation within 30 days of receiving notice, before any court claim can be filed.

Offboarding

Settlement

• Calculate and pay severance (kıdem tazminatı) and notice compensation (ihbar tazminatı) where applicable.
• Pay out any unused annual leave entitlement as part of the final settlement.
• Remit the final income tax withholding to the Turkish Revenue Administration by the 26th of the following month.

Documents

• Issue a certificate of employment upon the employee's request.
• Provide a written severance calculation breakdown for the employee's records.
• Issue the annual income statement required for the employee's personal tax filing.
• Confirm that all employment records are retained for the mandatory 10-year period.

Exit

• Collect all company assets, including laptops, phones, and access cards, before the final day.
• Complete SGK deregistration promptly to avoid ongoing contribution liability.
• Handle departing employee personal data in line with KVKK requirements, including secure deletion or transfer protocols.
• Offer an exit interview to capture feedback and close the employment relationship formally.

What's New: Recent Regulatory Changes in Turkey

Turkey's minimum wage increases to TRY 33,030 per month gross effective 1 January 2026, raising the employer SGK contribution base and increasing total employment costs across all payroll calculations.

• Payroll calculations: All salary-linked calculations, including overtime, severance accruals, and leave pay, must be updated to reflect the new minimum wage floor.
• SGK contribution base: Employer and employee SGK contributions increase proportionally, as the base is tied directly to gross salary.
• BES contribution base: The mandatory Private Pension System (BES) employer contribution of 3% is calculated on gross earnings, so the 2026 wage increase raises the monthly BES cost per employee.
• KVKK enforcement activity: The Personal Data Protection Authority (KVKK) has increased audit activity, requiring employers to maintain current data processing agreements and employee consent records.
• OHS regulation updates: Occupational Health and Safety obligations under Law No. 6331 continue to expand, with stricter documentation requirements for workplace risk assessments.

Employers must update payroll systems, employment contracts, and BES enrolment records before January 2026 to avoid SGK penalties and compliance gaps.

Review owner note: This section should be reviewed quarterly to reflect any mid-year minimum wage adjustments or SGK base rate changes issued by the Turkish government.

Costs and Financial Planning for Hiring in Turkey

Hiring in Turkey costs more than the agreed salary. Employers must account for statutory contributions, mandatory benefits, and administrative overhead before finalizing any headcount budget.

Several costs are easy to underestimate. The mandatory BES employer contribution adds 3% of gross earnings per enrolled employee. Meal card provision is a standard market expectation in white-collar roles. Occupational Health and Safety compliance under Law No. 6331 requires periodic workplace assessments and documentation. Employment records must be retained for 10 years under Turkish labor law, creating ongoing administrative overhead for HR and legal teams.

Cost Element	Direct Entity	Gloroots EOR
SGK employer contribution	~20.5% of gross salary, managed internally	Included and remitted by Gloroots
Unemployment insurance (employer)	2% of gross salary, filed monthly	Included and filed by Gloroots
BES employer contribution	3% of gross earnings, enrolled and tracked internally	Managed and remitted by Gloroots
Severance accrual	30 days gross per year, accrued and tracked internally	Tracked and reported by Gloroots
Meal card provision	Sourced and administered internally	Coordinated through Gloroots benefits layer
OHS compliance costs	Employer arranges assessments and documentation	Supported through Gloroots compliance framework
10-year record retention	Internal HR and legal overhead	Managed within Gloroots employment platform
EOR service fee	Not applicable	Predictable monthly fee per employee

Common Challenges and How Gloroots Solves Them in Turkey

Employers entering Turkey face specific compliance obligations that are easy to miss without local expertise. The following challenges are operational, not theoretical, and each carries real penalty exposure.

Challenge	Gloroots Solution
KVKK compliance: Employers must maintain data processing agreements, employee consent records, and data transfer protocols under Turkey's Personal Data Protection Law.	Gloroots uses KVKK-compliant employment contracts and maintains required data processing documentation for each employee.
BES enrolment: Employees under 45 must be automatically enrolled in the Private Pension System within 30 days of hire. Employers must contribute 3% of gross earnings monthly.	Gloroots manages BES enrolment, contribution calculations, and monthly remittances on behalf of the client.
OHS obligations: Law No. 6331 requires workplace risk assessments, OHS training records, and periodic documentation updates for all employers.	Gloroots supports OHS documentation requirements and coordinates compliance filings to meet statutory deadlines.
Mass redundancy rules: Terminating 10 or more employees within 30 days triggers collective dismissal procedures under Labour Law No. 4857, including mandatory notification to the Turkish Employment Agency (İŞKUR).	Gloroots manages termination processes in compliance with collective dismissal rules, including İŞKUR notifications and notice period calculations.
Payroll tax deadline management: Monthly SGK declarations and income tax withholding filings have strict deadlines. Late submissions attract penalties from the Turkish Revenue Administration.	Gloroots runs payroll on a fixed monthly cycle, filing SGK declarations and tax withholdings on time each period.

Why Gloroots Is a Strong EOR Partner in Turkey

Gloroots works best for companies entering Turkey without a local entity, teams scaling headcount quickly across Istanbul and other cities, and organizations that need to reduce compliance risk without building internal Turkish HR capacity.

Turkey-specific strengths include a wholly-owned local entity, KVKK-compliant employment contracts, managed BES enrolment and monthly contributions, and OHS compliance support under Law No. 6331. These are built into the standard employment layer, not sold as add-ons.

With Gloroots, companies can employ workers in Turkey within 2 to 5 days, compared to 4 to 8 weeks to incorporate a Turkish LLC and complete SGK and tax registrations independently.

The model fits tech companies, multinationals, and scale-ups hiring white-collar professionals in Istanbul, where demand for compliant, fast employment is highest.

Gloroots consolidates SGK contributions, BES enrolment, KVKK documentation, and payroll into one monthly invoice. This reduces the compliance overhead that comes with managing multiple Turkish agencies and filing deadlines without a dedicated local team. For more on employer of record cost structures, see our detailed breakdown.

Conclusion

Turkey's 2026 minimum wage increase and expanding tech sector make payroll accuracy and statutory compliance more critical than at any point in recent years.

Before engaging any EOR provider in Turkey, review your hiring plan against SGK contribution obligations, KVKK data processing requirements, and BES enrolment rules. Each carries distinct deadlines and penalty exposure. Companies hiring across the region may also find it useful to compare requirements with the employer of record UAE page, as Turkey and the UAE are common paired markets for EMEA workforce expansion.

Frequently Asked Questions About Employer of Record in Turkey

Is it legal to use an Employer of Record in Turkey?

Yes. EOR is a legally recognized employment structure in Turkey. The EOR becomes the legal employer under Labour Law No. 4857, handling SGK registration, payroll processing, and statutory compliance. The client company directs the employee's day-to-day work without assuming direct employer liability.

How long does it take to hire an employee in Turkey through an EOR?

With an EOR, hiring typically takes 2 to 5 days. Setting up a Turkish LLC (Limited Şirket) independently takes 4 to 8 weeks, including Trade Registry, SGK registration, and tax authority filings. An EOR removes that setup requirement entirely.

What does an EOR in Turkey cost?

EOR fees typically range from USD 299 to 599 per employee per month, on top of the employee's salary and statutory costs. Total employment cost in Turkey runs 25 to 35% above base salary when SGK contributions, BES employer contributions, and severance accruals are included. See our employer of record cost guide for a full breakdown.

Do employees hired through an EOR in Turkey receive full statutory benefits?

Yes. Employees hired via an EOR receive all statutory entitlements under Labour Law No. 4857: annual leave of 14 to 26 days based on tenure, SGK health and pension coverage, maternity leave of 16 weeks paid by SGK, 5 days of paternity leave, severance pay accruals, and BES enrolment for employees under 45.

What is the difference between an EOR and setting up an entity in Turkey?

An EOR lets you employ workers in Turkey without incorporating a local entity, avoiding the TRY 50,000 minimum capital requirement and the 4 to 8 week setup timeline. The EOR assumes legal employer liability. With your own entity, your company bears all SGK, tax, and labour law obligations directly.

Can an EOR sponsor work permits for foreign employees in Turkey?

Yes. An EOR with a wholly-owned Turkish entity can act as the sponsoring employer for work permit applications through the Ministry of Labor and Social Security. This covers short-term permits of up to one year and supports Turquoise Card applications for highly skilled professionals seeking indefinite work and residence rights.

Does an employee hired through a Turkey EOR need a Turkish bank account?

Yes. Turkish payroll is processed in TRY and must be paid into a Turkish bank account. The EOR manages payroll setup and processing, but the employee must open a local bank account before their first salary payment can be made.

What happens to an employee if the EOR relationship ends?

If the EOR relationship ends, the employee can be transitioned to a direct employment contract with the client company if a Turkish entity exists, transferred to another EOR provider, or terminated in compliance with Labour Law No. 4857 notice periods and severance entitlements. The EOR manages the transition process in each case.