The employer must know about the labor laws, social security, benefits, deductions, and allowances while onboarding an individual from Turkey. This section will provide employers with all the required information when taking in workers from the country.
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
According to Turkish Labor Law, the employment contract must be in Turkish or any other language understood by both parties.
Probation Period
The probation period in Turkey is up to 60 days.
13th Month Pay
The 13th month’s pay is not mandatory. However, the employer can provide annual or quarterly bonuses.
Employee Benefits
Employers in Turkey may provide the following benefits to their employees:
- Meal Cash allowance.
- Company Car. Pensions.
- Private Health care.
The payroll cycle in Turkey is monthly.
In Turkey, the monthly minimum wage is 8,506.80 TRY net, and 10,008 TRY gross.
The overtime pay in Turkey is 50% of the regular pay.
Employer Payroll Cost:
| Category |
Tax rate |
| Social Security Insurance |
2% |
| Disability and Old-age Insurance |
11% |
| Health Insurance |
7.5% |
| Unemployment Insurance |
1% |
Employee Payroll Cost:
| Category |
Tax rate |
| Disability and Old-age Insurance |
9% |
| Health Insurance |
5% |
| Unemployment Insurance |
2% |
Employee Income Tax
| Annual Income in TRY |
Tax Rate |
| 0 – 32,000 |
15% |
| 32,000 – 70,000 |
20% |
| 70,000 – 250,000 |
27% |
| 250,000 – 880,000 |
35% |
| 880,000 and above |
40% |
Stamp Tax
There is a stamp tax of 0.759% calculated via payroll.
VAT
The Standard rate of Value Added Tax in Turkey is 20%.
Termination Process
According to Turkish laws, the contract can be terminated based on three ways—the employer can terminate, the employee can terminate, or the contract is automatically terminated. However, the terminating party has to provide a notice for the end of employment.
Notice Period
The notice period varies depending on the length of employment: 2 weeks for less than 6 months, 4 weeks for 6 months to 1 year and 6 months, 6 weeks for 1 year and 6 months to 3 years, and 8 weeks for more than 3 years.
Severance pay
There are no statutory laws for severance pay. However, the employer has to give severance pay if the employee was terminated without notice.
In order to work in Turkey, the employee must apply for a work permit at the nearest Turkish Mission and provide with necessary personal documents along with a letter from the employer. Your employer must submit the other documents to the Turkish Ministry of Labor and Social Security (MLSS).