Expanding into Turkey: EOR Services Pave the Way for Hassle-Free Hiring

As Turkey emerges as a crucial gateway between Europe and Asia, navigating its complex labor laws and regulatory frameworks can be a daunting task for companies looking to expand. Employer of Record (EOR) services offer a seamless solution, enabling businesses to hire talent in Turkey without the hassle of establishing a local entity.

 

Population	Languages	Country Capital	Currency	Time Zone	Minimum Net Wage
87,473,805	Turkish	Ankara	Turkish lira (₺) (TRY)	GMT+03:00	TRY 17,000

 

The concept of Employer of Record (EOR) services plays a crucial role for businesses seeking to expand into global markets. In Turkey, EOR services are designed to facilitate business operations without the need for establishing a local entity.

 

Turkey Working Hours

The workweek is capped at 45 hours, spread evenly across workdays. If an employee works beyond 45 hours, they are entitled to overtime pay, calculated at 150% of their regular rate. Alternatively, employees may receive 1.5 hours of compensatory time for each overtime hour worked. Overtime terms may be enhanced through collective bargaining or employment contracts, but total overtime cannot exceed 270 hours annually.

 

Taxes in Turkey

In Turkey, both employers and employees must contribute to social security. Employees pay 14%, while employers contribute between 15.5% and 20. 5%, depending on certain factors. For unemployment insurance, the employee pays 1%, the employer 2%, and the state 1%. Employers are responsible for both their own and the employee's contributions, with the latter typically deducted from the employee’s salary. This general information reflects standard practices but is not intended as legal or tax advice.

 

Turkey has 9 paid year holidays, which are:

• New Year’s Day – January 1^st
• National Sovereignty and Children’s Day – April 23^rd
• Labor Day and Solidarity Day – May 1^st
• Youth and Sports Day – May 19^th
• Democracy and National Unit Day – July 15^th
• Victory Day – August 30^th
• Republic Day – October 29^th
• Ramadan Bayramı Holiday – 3.5 days (Eid Fitr)
• Kurban Bayramı Holiday – 4.5 days (Eid Al Adha)

 

Paid Annual Leave in Turkey:

Paid time off is dependent on the number of years of service – Labour Law No: 4857

• Years 1-5: 14 working days
• More than 5 years but less than 15: 20 working days
• 15 years or longer: 26 working days

 

Hiring foreign workers in Turkey requires coordination between employers, the Ministry of Labor, and the foreign worker’s embassy, with processing times up to three months. Regulated professions like architecture and engineering may require a year for approval. Turkish Labor Law No. 4857 governs employment, covering contracts, working hours, leave, and termination. Employers should also consider Collective Bargaining Agreements and Trade Unions as they play a significant role in the labor process and can affect hiring timelines.

For more information about EOR Services in Turkey, contact Staff Arabia's experts and start your business growth.

 

*Last updated October 2024