Hiring in Turkey: Complete Guide 2027
Everything you need to know about hiring and managing employees in Turkey
Overview
Turkey is a market of 85 million people with a deep engineering bench in Istanbul, Ankara and Izmir, paid in lira. Employment is governed by Labour Law 4857: a 45-hour week, 14 to 26 days of annual leave by tenure, and severance of 30 days' gross pay per year of service once an employee passes one year. Employer contributions run 21.75% for SGK plus 2% unemployment insurance before incentives, so budget 22 to 24% on top of gross. An EOR carries the SGK registration, the monthly declarations and the severance reserve you would otherwise hold in a Turkish subsidiary.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Turkey
Turkish payroll runs monthly in lira. An employer registers with the Revenue Administration (GİB) for a tax number and with the Social Security Institution (SGK) for an employer number; the EOR already holds both. Employer contributions in 2026 are 21.75% for SGK (19.75% with the 2-point incentive, 16.75% in manufacturing with the 5-point one) plus 2% unemployment; the employee pays 14% SGK and 1% unemployment. Premiums are capped at 7.5 times the minimum wage, TRY 247,725 a month. Income tax is withheld at 15% up to TRY 190,000 a year, then 20%, 27%, 35% and 40% above TRY 5.3 million; the slice of every wage equal to the minimum wage is exempt from income tax and stamp duty, and stamp duty of 0.759% applies to the rest. The gross minimum wage is TRY 33,030 from 1 January 2026 (net TRY 28,075.50, employer cost TRY 40,874.63 without incentives). The EOR files the monthly SGK declaration and the withholding return, and issues payslips.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract, the Turkish text prevails
- Probation up to 2 months (4 by collective agreement)
- 45-hour week, overtime paid at 150%
Leave & Time Off
- 14 to 26 days of annual leave by tenure
- 14.5 public holidays a year
- Maternity leave 16 weeks, 8 before and 8 after birth
Termination Rules
- Notice of 2 to 8 weeks by tenure
- Severance of 30 days' pay per year after one year
- Job security from 30 staff after 6 months
COMPLIANCE
Severance Pay and Termination Compliance in Turkey
Severance (kıdem tazminatı) is the cost that surprises foreign employers in Turkey. After one year of service, an employee dismissed without just cause, or leaving for a reason the law protects (retirement, military service, marriage for women within a year), is owed 30 days' gross pay per year of service, prorated and capped per year at the ceiling, TRY 53,919.68 for the first half of 2026. Notice runs 2 to 8 weeks by tenure under Labour Law 4857, payable in lieu. From 30 staff and six months' service, job security applies: a dismissal needs a written, valid reason, and a court can order reinstatement with up to eight months' pay. Ask your EOR who accrues severance each month and whether it is invoiced as a reserve or at exit.
Key Challenges
- Severance of 30 days' pay per year of service after year one
- Minimum wage reset every January (TRY 33,030 gross in 2026)
- Job security from 30 staff: a dismissal needs a written, valid reason
- Work permits for foreigners under a 1:5 foreign-to-Turkish staff rule
- Income tax brackets that move with inflation each year
Country Highlights
Advantages
- Deep engineering graduate pool in Istanbul and Ankara
- Salaries in lira: a senior developer costs a fraction of a Berlin hire
- One hour ahead of central Europe, same working day
- The part of every wage equal to the minimum wage is tax-free
- Customs union with the EU and a 45-hour statutory week
Popular Industries & Roles
Technology
Avg. Salary: ₺1M-₺2M
Istanbul's software and fintech teams work European hours for European clients, drawing on engineering graduates from ITU, METU and Boğaziçi
Manufacturing & Automotive
Avg. Salary: ₺600k-₺1.2M
Bursa and Kocaeli host the automotive and white-goods plants that supply the EU under the 1995 customs union; production engineers and plant managers are in demand
Financial Services
Avg. Salary: ₺800k-₺1.6M
Istanbul's banks and payment companies hire risk, treasury and fintech staff, and the Istanbul Finance Center opened in 2023 to concentrate them
Top 3 Providers in Turkey
Based on our analysis of pricing, compliance record, service quality, and customer reviews
ERAI Turkey
- Turkey market entry consultancy + EOR
- Founded 2006 — 19-year track record
- French and English market specialist
- In-house legal advisor and work permits
FMC Group
- Germany EOR (AUG licence), 1-2 day hire
- Turkey and MENA market entry, 25+ years
- 50+ EOR countries, 700+ clients since 1999
- No published pricing, 5 Trustpilot reviews
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
Frequently asked questions
Hiring in Turkey through an EOR, in short.
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How much does an employer pay on top of salary in Turkey?
Employer contributions in Turkey come to 21.75–23.75%; the largest mandatory line is SGK 21.75%. With the other statutory benefits and a typical EOR fee, budget ~35–50% on top of gross salary.
What does an EOR charge per employee in Turkey?
Published EOR fees in Turkey run $400–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Turkey pay in tax and contributions?
Income tax is 15–40% progressive and employee social contributions are 15% (14% SGK), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Turkey?
2-5 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Turkey?
ERAI Turkey, FMC Group and Deel hold the first three places in our ranking for hiring in Turkey. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Turkey.
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