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We have our own legal entity to protect your business from risk and provide you and your employees with a distinctive experience.

Services available

  • Employer of record
  • Contractor management
  • Global payroll
  • In-country payroll

Mercans offers complete payroll, PEO and HR services in Turkey

Turkey is one of the fastest growing economies in the world, with large domestic and regional markets. The country is regional headquarters for many multinationals, thanks to its location at the intersection of Europe, Asia and Africa. With a young, dynamic population, Turkey offers a skilled and competitive labor force to match its liberal investment climate.

Doing Business in Turkey

With a robust R&D ecosystem and lucrative opportunities to explore in many business sectors, it is a destination of choice for many businesses. Key sectors include automotive, defense and aerospace, energy, agrofood, infrastructure and financial services.

Entity Registration and Incorporation Requirements

Setting up a new business or expanding an existing one in Turkey is straightforward. Choose how your company operates from a range of entity types that suit your individual circumstance.

Banking

Banking Hours: 9:00 am to 5:00 pm from Monday to Friday.

Working Week

The standard working week is from Monday to Friday from 8:30 am - 5:00 pm.

Labor Law

The main sources of labor law are the Turkish Constitution, the Labor Act and a number of other Acts governing labor relations.

Main Industries

Machinery, tourism, textile, electronics, construction, shipbuilding, autos, mining

GDP Growth

1.2%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Türkiye

Population

84.68 million

Capital

Ankara

Major Languages

Turkish

Currency

Turkish Lira

Internet Domain

.tr

International Dialing Code

+90

Turkey
Ankara, TR
7:54 pm, February 2, 2023
1°C
light snow

Payroll in Turkey

As a global leader in payroll, Mercans provides companies with the most suitable payroll in Turkey solutions for their local employees, whether they are Turkish citizens or expatriates. Our goal is to be your dedicated payroll provider, providing you with solutions that will ensure your compliance in Turkish operations.

Through our experience and advanced technology, we offer industry-leading payroll services in Turkey—and around the globe. We’re among the largest payroll companies in Turkey, holding a position as a leader in this field. As for Turkey payroll, our end-to-end payroll services make life easier for you by simplifying complicated and time-consuming processes like Real Time Information (RTI), reporting, and pension auto-enrollment. You can count on our experts to provide you with real-time payroll assistance at all times.

Payroll

An employer is obligated to pay wages in full and on time and an employment contract which does not contain this duty is regarded as invalid. Wages must be paid in cash, not in kind and determined in Turkish Lira.

It is illegal to provide employees with online payslips

Payslip

Payroll reports must be kept for 10 years

Reports

Employees are entitled to receive paid annual leave of 14 days

Annual Leave

Employees are not entitled to paid sick leave

Sick Leave

Employees are entitled to 16 weeks of paid maternity leave and 5 days of paid paternity leave

Maternity & Paternity Leave

Employers are required to provide 30 days notice of termination of the employment relationship

Employee Termination

There are no provisions mandated by law regarding the 13th month salary

13th month salary

5,008 TRY per month

Minimum Wage

Overtime pay is calculated at the rate of 1.5x the employee's ordinary rate of pay

Overtime

Employees paid monthly are entitled to a month’s pay for each year of employment.

Severance Pay

Our Employer of record services and local human resources experts help you manage employment, payroll, benefits for your employees in Turkey—without having to set up a local entity.

Through our EOR services in Turkey, we offer guidance on all the local contract, benefits and paid leave requirements to help you stay in compliance, so that you understand your total social costs.

Whether you’re looking to expand your business into new markets or want to find the right talent for a specific job, our global solutions advisors can help you with EOR in Turkey. Contact us today so we can discuss how to best meet your international hiring needs.

Tax and Social Security

Turkey taxes residents on their worldwide income and non-residents are taxed on Turkish-source income only. Social security premiums are also mandatory, calculated on salary limits and paid by the employer and employee at defined rates.

Tax

Companies are subject to a standard corporate income tax rate which has been increased in 2021 and 2022.

23%

Corporate Income Tax

40%

Personal Income Tax

18%

Sales Tax

18%

VAT

Social Security

A foreign worker who is covered under the social security system of their home country is not required to contribute to Turkish social security provided proof of coverage is provided.

34.5%

Social Security Rate

20.5%

Social Security Rate for Employers

14%

Social Security Rate for Employees

Employment Law

There are a number of mandatory provisions governing minimum wage, work hours, weekly rest periods, severance and notice periods as well as different categories of leave.

Employment Agreement

In general, employment agreements are not required to be in writing. However, certain contracts such as fixed term contracts must be made in writing. Workplace practices may be treated as implied terms in an employment agreement.

Working condition

A minimum of 24 hours uninterrupted rest period is required to be given every week. There is also a minimum age of employment set at 15 years (subject to limitation) and 18 years (with no limitations).

Leaves

Female employees are entitled to unpaid leave for up to six months following the end of paid maternity leave. After maternity leave, an employee can also request part-time work for a period up to the date the child starts primary school.

Employment termination

Termination is split between termination of indefinite term and fixed term contracts. No notice period is stipulated for a fixed term employment contract which cannot be terminated unless valid reasons are provided. Indefinite term contracts, however, are governed by a minimum notice period of two weeks (gradually extending to eight weeks).

30 days

Minimum notice period for terminating an employee

14 days

Total number of public holidays

45

Working hours per week

6 days

Total number of days for Compassionate & Bereavement Leave

Immigration

Four types of work permits are available, that is, limited term permits, unlimited term permits, permits for independent work and Turquoise permits. Foreign workers who seek work permits in selected areas will require a defined level of professional competency and must obtain a preliminary work permit prior to obtaining a work permit.

Residency permits

There are a number of bilateral and multilateral agreements which Turkey is party to, which allows the nationals of certain countries to work in Turkey without a work permit.

Work Permit Validity

3 years

Required Documents

Valid passport

Two photos taken within the last six months

Copy of the certificate of police clearance

Copy of the applicant’s job offer or employment contract

Translated diploma or provisional graduation certificates of the applicant

Proof of the applicant’s medical insurance

Proof of the applicant’s accommodation in Turkey

Evidence to indicate the applicant has approximately TRY368 per day for every day spent in Turkey

Proof of the applicant’s round-trip flight to Turkey.

Compliant, reliable, error-free and touchless payroll in Turkey

Build the best team and hire top talent compliantly in Turkey. Get in touch with Turkey payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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