Hire employees in Turkey using an Employer of Record

You need someone in Turkey by next quarter. Your lawyer just said entity setup takes 6 months minimum. The math doesn't work.

Meanwhile, your perfect candidate is fielding other offers. They can't wait half a year for you to figure out Turkish bureaucracy, and frankly, neither can your business. This is where most companies hit the wall between "we need to hire globally" and "we actually need to hire globally right now."

The reality? You've got three ways to hire in Turkey, and each comes with trade-offs you need to understand upfront.

Option 1: Set up your own entity

• Cost: €15,000-50,000 upfront, €8,000-15,000 annual maintenance
• Timeline: 4-6 months minimum
• Complexity: Full tax registration, payroll system, legal compliance, HR infrastructure
• Makes sense when: Hiring 20+ people long-term, permanent market presence

Option 2: Hire contractors

• Cost: None upfront, but limited control
• Timeline: Immediate
• Risks: Misclassification fines (€50,000+), back taxes, legal disputes
• Makes sense when: Short projects (< 6 months), specialized skills
• Note: Hire with Columbus also handles contractor agreements and payments

Option 3: Use an employer of record (Recommended for most)

• Cost: $179/month per employee
• Timeline: 2-3 days to hire
• Complexity: None - we handle everything
• Makes sense when: 1-50 employees, testing markets, multi-country teams

If you're hiring 1-10 people, entity setup costs more than 3-4 years of EOR fees ($179/month = $2,148/year per employee vs €15,000+ upfront plus ongoing maintenance). An EOR like Hire with Columbus handles employment contracts, payroll, taxes, benefits, and compliance updates while you focus on growing your team.

Ready to hire in Turkey without the headaches? Get started with Hire with Columbus.

What employment types can you use?

You've got three ways to bring someone onboard in Turkey. Here's how the costs and risks compare – and why most companies skip the entity headache entirely.

How can you hire in Turkey?

Let's be real: setting up your own entity sounds impressive until you see the bill and timeline. Here's what each option actually costs you.

Set up your own entity

You'll need €25,000-35,000 upfront just for incorporation, legal fees, and initial compliance setup. Then factor in 4-6 months of waiting while lawyers handle paperwork with Turkish authorities.

The real kicker? Ongoing costs hit €2,000-4,000 monthly for accounting, payroll systems, legal compliance, and HR infrastructure. Plus you're personally responsible for getting every labor law detail right – and Turkey's got plenty of them.

This makes sense if you're planning 20+ employees long-term and want full control over your Turkish operations. Otherwise, you're burning cash and time you don't have.

Hire contractors/freelancers

Sure, you can start tomorrow. But Turkey's labor authorities actively hunt for misclassified workers, and the penalties are brutal.

Get caught treating a contractor like an employee? You're looking at back taxes, social security contributions, and fines up to €50,000 per worker. Plus the contractor can demand full employee benefits retroactively.

The classification rules are strict: if you control their schedule, provide equipment, or integrate them into your team like employees, they're legally employees. Period.

Stick to genuine short-term projects under 6 months with specialized skills. For everyone else, you need proper employment contracts.

Use an employer of record (Recommended)

Here's where it gets smart: Hire with Columbus becomes the legal employer in Turkey while you manage the actual work and performance.

We handle employment contracts, payroll, tax compliance, benefits, and all the legal requirements that would normally require your own entity. Your new hire starts in 2-3 days instead of months.

Cost breakdown: $179/month per employee versus €25,000+ entity setup. With 5 employees, that's $895 monthly versus the massive upfront investment and ongoing compliance headaches.

Employment contract types in Turkey

Once you've decided how to hire (hopefully through an EOR), you need the right contract type. Turkey offers several options, but most international companies use two main types.

Permanent contracts (Indefinite-term)

This is your standard full-time employment contract with no end date. It's what 85% of international companies use for core team members because it offers maximum flexibility and employee security.

Benefits: No restrictions on renewals, easier to build long-term teams, employees get full labor law protections. You can still terminate with proper notice and cause.

Turkish employees actually prefer permanent contracts – it affects their ability to get loans, rent apartments, and feel secure in their roles.

Fixed-term contracts

These have specific end dates and stricter rules. You can use them for seasonal work, temporary projects, or covering employee absences.

The catch: fixed-term contracts automatically convert to permanent after 12 months or if you renew them twice. Turkey designed this to prevent companies from avoiding permanent employee protections.

Use fixed-term contracts only when you genuinely need temporary coverage. For regular business needs, permanent contracts give you more flexibility.

Part-time contracts

Part-time employees get the same protections as full-time workers, just prorated. Minimum 4 hours per day, and you'll still pay full social security contributions on their earnings.

Popular for customer service roles or specialized consultants who work across multiple companies. The administrative burden is identical to full-time employees.

How Hire with Columbus handles contracts

We draft all employment contracts in Turkish and English, ensuring they comply with current labor laws and include required clauses for termination, benefits, and working conditions.

For permanent contracts, we include probation periods (up to 2 months), notice requirements, and benefit entitlements. For fixed-term contracts, we structure them to avoid automatic conversion unless that's your goal.

The best part? We monitor contract renewals and conversions automatically, so you never accidentally create permanent obligations when you meant to keep things temporary.

How does payroll and taxation work?

Your €60,000 employee in Turkey actually costs €78,300 per year once you add employer contributions. That's a 30.5% markup on base salary, and it catches most companies off guard.

Turkey's payroll system runs on monthly cycles with some unique twists. Employees expect their salary split into 12 monthly payments, but you'll also need to budget for mandatory holiday bonuses that can add another month's worth of pay annually.

Income tax brackets

Turkey uses a progressive tax system with rates that climb quickly. Here's what your employees will pay in 2025:

Most international hires fall into the 20-27% brackets. A software engineer earning €60,000 (roughly 2,100,000 TRY at current rates) pays 27% on income above the second threshold.

Social security contributions breakdown

This is where costs add up fast. Turkey splits social security between employer and employee, but the employer carries the heavier load:

Work accident rates vary by industry risk level. Tech companies typically pay 2%, while manufacturing can hit 6.5%.

Real cost example

Here's what a €60,000 annual salary actually costs you:

• Base salary: €60,000
• Employer social security (25% average): €15,000
• Holiday bonus (mandatory): €2,500
• Administrative costs: €800
• Total annual cost: €78,300

That's before you factor in office space, equipment, or benefits beyond the legal minimums.

Payment schedule and timing

Turkish employees get paid monthly, typically on the last working day of each month. You can't just wing the timing - labor law requires payment within the first seven days of the following month at the latest.

Holiday bonuses hit twice per year. Religious holidays (Eid) require a bonus equal to half a month's salary, paid before the holiday starts. Many companies also pay a vacation bonus in summer, though this isn't legally required everywhere.

Tax filings happen monthly. You've got until the 26th of the following month to submit payroll taxes and social security contributions. Miss this deadline and penalties start at 1.6% of the unpaid amount, compounding monthly.

Common payroll mistakes

The biggest mistake? Miscalculating social security ceilings. Turkey caps contributions at 7.5 times the minimum wage (roughly 270,000 TRY annually in 2025). Companies often over-contribute for high earners, then struggle to get refunds.

Late tax filings kill budgets. That 1.6% monthly penalty becomes 19.2% annually if you're consistently late. We've seen companies hit with €15,000+ in penalties for a single high-earning employee.

Currency fluctuation catches international companies off guard. If you're paying salaries in EUR but filing taxes in TRY, exchange rate swings can throw off your calculations. The tax office doesn't care about your currency hedging strategy.

Setting up compliant payroll in Turkey yourself means hiring a local accounting firm (€800-1,500/month), buying payroll software (€200-400/month), and hoping you don't mess up the monthly filings. With Hire with Columbus, you pay $179/month per employee and we handle all the calculations, filings, and compliance headaches. No penalties, no currency hassles, no late-night tax deadline panic.

What benefits and leave are required?

Turkey employees can take 5 days of sick leave without a doctor's note, but after that, you'll need medical certification. Social Security Institution (SGK) covers 66% of their salary from day 3 onwards, but you're still on the hook for the first two days at full pay.

Here's what gets expensive fast: Turkey operates on a 14-salary system, not 12. You'll pay an extra month's salary in June (religious holiday bonus) and another before the annual leave period. Miss these payments and you're looking at penalties starting from ₺15,000 per violation.

Annual vacation leave

Every employee gets a minimum of 14 days paid vacation after one year of service. This jumps to 20 days after 5 years, and 26 days after 15 years of service.

Vacation days accrue monthly (1.17 days per month in the first year). Employees can't carry over unused days to the next year unless you agree in writing. If they don't use them, you must pay out the unused days at their current salary rate when they leave.

You can't force employees to take vacation during their first 6 months. After that, timing is negotiable between you and the employee, but they get final say if you can't agree.

Sick leave entitlements

Employees get unlimited paid sick leave, but the payment structure changes based on duration:

• Days 1-2: You pay 100% of salary
• Day 3 onwards: SGK pays 66% of salary (you can top up to 100% voluntarily)
• After 6 months: SGK stops paying, employee goes on unpaid leave

Doctor's notes are required after 3 consecutive days or 5 non-consecutive days in a month. The note must come from a state hospital or SGK-contracted facility.

Employees who abuse sick leave can be terminated, but you'll need solid documentation. Keep detailed records of all sick leave requests and medical certificates.

Parental leave breakdown

Maternity leave: 16 weeks total (8 weeks before birth, 8 weeks after). SGK pays the full salary during this period. Mothers can transfer up to 3 weeks of pre-birth leave to post-birth if they want.

Paternity leave: 5 days paid leave for fathers, paid by the employer at full salary. This must be taken within 30 days of the birth.

Parental leave: After maternity leave ends, either parent can take up to 6 months unpaid leave until the child turns 3. The job must be held open, and they return to the same position.

Breastfeeding mothers get 1.5 hours daily nursing breaks (paid) until the child turns one. This can be taken as arriving late, leaving early, or extended lunch breaks.

Public holidays 2025

Turkey has 14.5 official public holidays in 2025. Pay double salary if employees work on these days.

Religious holidays follow the lunar calendar, so dates shift each year. The half-day comes from Sacrifice Feast Eve (June 4), which is typically a half-day holiday.

Mandatory benefits and contributions

Three benefits are non-negotiable in Turkey: social security, unemployment insurance, and occupational accident insurance. Here's who pays what:

Social Security (SGK):

• Employee contribution: 14% of gross salary
• Employer contribution: 15.5% of gross salary
• Covers healthcare, retirement, and disability

Unemployment Insurance:

• Employee: 1% of gross salary
• Employer: 2% of gross salary
• Unemployment Fund: 1% (employer pays this too)

Occupational Accident Insurance:

• Employer pays 0.1% to 6.8% depending on industry risk level
• Covers workplace injuries and occupational diseases

Total employer burden adds roughly 20% to base salary costs before you factor in the 14-salary system and vacation payouts.

Optional competitive benefits

Most Turkish companies offer these extras to attract talent:

Private health insurance: Covers gaps in public healthcare, costs ₺2,000-8,000 annually per employee. Popular with tech and finance companies.

Meal allowances: Up to ₺75 daily is tax-free for employees. Can be cash, vouchers, or cafeteria meals.

Transportation: Monthly public transport passes (₺500-800 in Istanbul) or company shuttles in industrial areas.

Life insurance: Usually 12-24 months of salary coverage. Costs about 0.1-0.3% of the insured amount annually.

13th month bonus: Some companies pay an additional month's salary in December beyond the required 14-salary system.

Common benefit administration mistakes

Missing the 14-salary payments: June religious bonus and annual leave bonus aren't optional. Budget for these from day one or face employee complaints and potential lawsuits.

Incorrect SGK registration: You have 30 days to register new employees with SGK. Late registration triggers penalties of ₺1,500 per employee plus interest.

Vacation payout errors: When employees leave, you must pay out unused vacation at their current salary rate, not their hire rate. This catches many companies off-guard during departures.

Sick leave documentation: Accepting doctor's notes from private clinics that aren't SGK-contracted can cause problems. Always verify the facility is approved.

Maternity leave timing: Some employers try to negotiate maternity leave timing. You can't - it's 8 weeks before and 8 weeks after, period. The employee chooses the exact start date within that framework.

Administering these benefits correctly requires local HR expertise (₺180,000+ annual salary), benefits software (₺15,000/month), and legal review (₺25,000/year). Risk of errors can cost ₺50,000+ in potential fines and back payments.

Hire with Columbus handles all benefit administration, SGK registration, and compliance monitoring for $179/month per employee. We calculate the 14-salary system automatically, manage vacation accruals, and ensure all mandatory contributions are filed correctly with Turkish authorities.

What are the compliance requirements?

Written contracts are mandatory in Turkey. Verbal agreements don't count and expose you to claims for back pay, benefits, and wrongful termination. Here's what you need to get right.

Employment contract requirements

Every employment contract in Turkey must be in writing and signed within 30 days of the employee's start date. Miss this deadline and you're looking at fines up to ₺50,000 per violation.

The contract must be in Turkish (English translations are fine as supplements, but Turkish is legally required). You'll need to include specific mandatory clauses: job description, salary details, working hours, probation period, and termination conditions.

Registration isn't required with government agencies, but the contract becomes legally binding once signed. Keep copies for at least 30 years after employment ends - Turkey's labor inspectors can audit historical records.

Probation periods

Probation periods in Turkey max out at 2 months for most positions. For specialized roles or management positions, you can extend to 4 months, but only if explicitly stated in the contract.

During probation, either party can terminate with 2 weeks' notice (or payment in lieu). After probation ends, full employment protections kick in - meaning longer notice periods and just-cause requirements for dismissal.

You can't extend probation periods once they're set. If you try to add extra "trial periods" after the initial probation, Turkish courts will treat the employee as having full permanent status.

Working time regulations

Standard working hours are 45 hours per week, typically spread across 6 days (7.5 hours daily). You can structure this as 5 days of 9 hours each, but you'll need employee consent in writing.

Overtime kicks in after 45 hours weekly. Rates are 150% of regular pay for the first 270 overtime hours annually, then 200% after that. Night shift work (10 PM to 6 AM) gets a 25% premium on top of base salary.

Employees must get at least 11 consecutive hours of rest between shifts and one full day off per week. Keep detailed time records - labor inspectors will fine you ₺15,000 per employee if you can't produce accurate working time documentation.

Notice periods

Notice periods depend on length of service and who's initiating the termination:

You can pay in lieu of notice, but the employee has to work their notice period unless you both agree otherwise. During notice periods, employees can take up to 2 hours daily for job searching (with pay).

Termination process

You can't fire someone in Turkey without just cause after probation ends. Valid reasons include poor performance (with documented warnings), misconduct, or economic necessity affecting the entire workplace.

For economic dismissals, you'll need to prove financial hardship and follow seniority rules (last hired, first fired). Give the employee's union or works council 30 days' notice before termination.

Immediate dismissal without notice is only allowed for serious misconduct like theft, violence, or breach of confidentiality. You have 6 working days from discovering the misconduct to terminate, or you lose the right to dismiss without notice.

Severance pay

Severance is required for most terminations (except resignations or dismissals for serious misconduct):

Severance calculations use gross monthly salary including regular bonuses and allowances. There's a cap of ₺45,000 per year of service as of 2025.

Employees who resign after 25 years of service (20 years for women) are also entitled to severance pay. This catches many employers off guard.

Data protection requirements

Turkey follows GDPR-style data protection rules under the Personal Data Protection Law (KVKK). Employee consent is required for processing personal data beyond basic employment needs.

You'll need explicit consent for background checks, health screenings, or monitoring systems. Keep employee data within Turkey or EU countries - transfers to other regions require special approval.

Violations can cost up to ₺2 million per incident. The Turkish Data Protection Authority has been particularly strict about employee monitoring and health data handling in 2025.

Common compliance mistakes

Invalid employment contracts are the biggest trap. Missing mandatory clauses, wrong language, or late signing makes the entire agreement void. You'll owe back payments for any benefits or protections the employee should have received.

Wrong termination processes cost even more. Firing without just cause or proper notice can result in reinstatement orders plus 4-12 months of back pay. Even if you win the case, legal fees typically run ₺25,000-50,000.

Many companies also miss overtime calculations. Turkey's complex overtime rules (different rates for different hour thresholds) trip up payroll systems regularly. Back overtime claims can go back 5 years.

Penalties for violations

Common compliance failures in Turkey:

• Invalid employment contract: ₺50,000 fine + contract void + back payments owed
• Improper dismissal: 4-12 months compensation + legal fees + potential reinstatement order
• Missing overtime payments: Back pay for 5 years + 25% penalty + ₺15,000 administrative fine
• Working time violations: ₺15,000 per employee + potential criminal charges for serious safety breaches
• Data protection violations: Up to ₺2 million per incident + regulatory investigation

Hire with Columbus ensures every contract and termination follows Turkey law exactly. Our legal team reviews all employment documents and handles termination procedures to keep you compliant. At $179/month per employee, it's far cheaper than fighting wrongful dismissal cases or paying compliance penalties.

What has changed recently?

Turkey's job market got a major shake-up in 2025. The biggest change? Minimum wage jumped to ₺22,104 per month (roughly $650) starting January 1st. That's a 30% increase from 2024, and it's forcing companies to rework their entire pay scales.

The government also rolled out stricter remote work rules in March 2025. You now need written agreements that spell out work-from-home setups, who provides equipment, and how you'll handle data security. You can't just let employees work remotely anymore without proper paperwork. The fines start at ₺50,000 ($1,470) per violation.

New digital nomad visa program

Turkey launched its Digital Nomad Residence Permit in April 2025. It targets remote workers earning at least $3,000 monthly. The one-year permit (renewable for up to three years) lets digital nomads work for foreign companies while living in Turkey.

This opens up interesting possibilities if you're hiring Turkish talent who might work as contractors instead of employees. But watch out. The line between contractor and employee got murkier with new classification rules.

Updated social security contributions

Social security rates went up across the board in 2025. Employer contributions now range from 22.5% to 24.5% of gross salary, depending on your business risk category. Employee contributions stayed at 15%, but now they calculate based on more benefits and allowances.

Severance pay calculation changes

The severance pay ceiling increased to ₺33,156 ($975) per year of service in 2025. More importantly, the calculation now includes overtime payments and certain bonuses when determining base salary for severance.

Your potential severance costs just went up, especially for long-term employees. An employee with 5 years of service could cost you up to ₺165,780 ($4,875) in severance alone.

New harassment and discrimination penalties

Turkey put stricter workplace harassment penalties in place in February 2025. Companies face fines between ₺100,000-500,000 ($2,940-14,700) for failing to address harassment complaints within 30 days. You're also required to have written anti-harassment policies and run annual training.

The new rules cover digital harassment too, including inappropriate messages on work platforms. This hits remote and hybrid teams hard.

Parental leave extensions

Maternity leave extended to 18 weeks (from 16 weeks) starting July 2025, with full salary coverage. Paternity leave doubled to 10 days, and adoptive parents now get the same leave as biological parents.

Companies with 50+ employees must also provide lactation rooms and flexible schedules for nursing mothers for up to two years after birth. The setup costs and ongoing compliance add up fast.

Using an EOR like Hire with Columbus (starting from $179/month per employee) handles all these regulatory changes automatically. We track the updates, adjust payroll calculations, and keep your employment contracts compliant without you having to monitor every policy change.