ERAI Turkey Review

360 Turkey Market Entry — The Unisensor Model

ERAI Turkey's most commercially distinctive capability is the complete Turkey operation outsourcing model. The Unisensor case study (2021) documents what this looks like in practice: ERAI established a subsidiary for Unisensor to oversee operations in Turkey and the Middle East Region; all essential services were managed by ERAI including virtual office setup, legal representation, administrative and accounting management, import/export management, back-office functions, office rental, and warehousing; a single local country manager for Turkey and the Middle East oversaw the entire operation. This model eliminates the multi-vendor complexity that typically characterises Turkey market entries — separate legal counsel, separate accounting firm, separate HR provider, separate office agent — and replaces it with one accountable Istanbul-based relationship. For international companies treating Turkey as a strategic expansion rather than a remote-hiring exercise, this integrated model represents a materially different engagement than a pure EOR platform provides.

Turkish Payroll Complexity — Progressive PIT and SGK

Turkish payroll compliance carries specific complexity that makes local expertise commercially important. The Personal Income Tax (gelir vergisi) system uses a progressive rate structure applied on cumulative year-to-date income — meaning that a Turkish employee's monthly tax withholding increases through the year as cumulative income grows. This cumulative system requires monthly recalculation as the employee moves through tax brackets, creating a more complex withholding calculation than the PAYE systems of the UK, Netherlands, or France. SGK (Social Security Institution) contributions: employer side is 20.5% of gross salary (standard rate; eligible employers in certain regions/sectors can access reductions to 15.5%); employee side is 15% (14% social security + 1% unemployment). Turkish minimum wage is updated annually (TRY 26,005.50 gross/month as of January 2025, up 9% year-on-year) — and must be rechecked against employee salaries at every update. Turkish severance is mandatory: 30 days' gross pay per full year of service for employees terminated without just cause, payable immediately upon termination. ERAI Turkey's 19-year payroll management history means these calculations have been performed through multiple regulatory and currency environments — crisis-tested competence relevant to Turkey's historically volatile macroeconomic context.

Work Permit Management — In-House Capability

Work permit management in Turkey involves employer sponsorship through the Ministry of Labour and Social Security (CSGB). Turkish work permits impose a foreign employee quota restriction: the number of foreign nationals cannot exceed 20% of the total Turkish employees in a workplace, with specific exceptions for certain industries, seniority levels, and investment types. Work permit applications require the employer to be registered with SGK, to demonstrate compliance with the 20% quota, and to submit documentation including employment contracts, criminal record checks, and in some cases professional qualification certificates. ERAI Turkey has confirmed in-house work permit management capability — not outsourced to a separate immigration agent. For French and European companies deploying senior managers, technical directors, or specialised expat professionals in Turkey, having the same firm that manages EOR employment also managing work permit applications eliminates coordination risk between the legal employer relationship and the immigration sponsorship relationship.