Payroll and HR in Turkey
The International HR & Payroll Company
That Speaks Your Language
IRIS FMP will simplify Turkish payroll and HR. As a recognized, trusted leading global payroll and HR specialist working worldwide, we have 88 in-country teams who will help ensure your international employees never miss a payment.
Navigating global payroll and HR in Turkey is no small feat. As compliance is always a top priority for businesses, especially during a global expansion, we can support you with HR or payroll wherever your business takes you. This includes differing laws, cultures and regulations, and it can feel overwhelming to stay on top of everything. Fortunately, our expert teams are on-hand to help. We offer:
Payroll in Turkey
We take away the complications associated with global payroll and manage everything on your behalf – this includes pay, benefits, and more. Through our payroll support, your growing workforce will be paid accurately, on-time, every time.
Employment Law Compliance
We will help you to seamlessly and compliantly onboard your organization’s latest talent whenever your business needs it. As an in-country specialists in Turkey, we can help with contracts, policies, and more.
Jump to section
- Asia (Western Asia)
- Calling Code
- Timezone in Capital
- (Turkey) 8:15 AM
- Turkish lira (TRY)
- Main Language
- Other Business Languages
- Tax Year Start
- 1st January
- Tax Year Start
- 31st December
Details correct at time of publication. You should not rely on these details without first seeking professional international advice.
A trusted advisor for global expansion
We support businesses in 135 countries worldwide to reach their expansion goals.
Global Expansion in Turkey
Turkey has a rich history of trade, once being the epicentre of the Ottoman Empire. Founded in 1299, the empire was not fully dissolved until 1923, when Turkey was declared an independent Republic. Throughout this period, Turkey enjoyed a wealthy economy in which luxury goods including silk, tobacco, and spices were exported – many of which commodities continue to be exported today. Other top exports are vehicles, gold, and jewellery.
The Ottoman Empire was allowed to flourish in part due to Turkey’s strategic position between Europe and the East. This position remains to be a unique advantage for those doing business today. There are 57 airports in Turkey, 33 of which offer international flights. National airline Turkish Airlines alone offer flights to 246 international destinations in 124 different countries in the Americas, Europe, Africa, the Middle East and Asia.
Within Turkey, public transport comes in the forms of taxis, buses, trams, ferries and the metro, which is simple to use and reliable.
Anyone thinking about a business expansion plan into Turkey should not only be familiar with cultural norms, language, and local transportation, but also the legislation involved with doing business in this country. Turkey has its own unique employment laws that can prove difficult to navigate, however with guidance from the experts at IRIS FMP, you can ensure that your company achieves compliance.
In Turkey, employers must submit:
- Corporate Income Tax return, due on the 25th day of the fourth month after the financial year end. (Ordinarily 25th April unless an alternative financial year has been arranged.
- Taxable income should be declared and paid on a quarterly basis
Payroll in Turkey
What tax considerations are there?
Personal Income Tax
In Turkey, all Turkish residents are taxed on their worldwide income, whereas non-residents are taxed only on income derived from within Turkey. Personal income tax is levied at a progressive rate, starting at 0% for those earning less than 22,000 TRY ($3,169) annually, and up to 35% for those earning 600,000 TRY ($86,427).
Employees earning between 98.10 TRY and 735.75 TRY ($14.13 – $105.98) per day, are subjected to social security contributions. These must be payed by both the employee and employer. For Turkish nationals the charge is currently 20.5% from the employer, and 14% from the employee.
Corporate Income Tax (CIT)
On net profits, businesses in Turkey are liable to pay corporate income tax at a rate of 22%. Resident entities are subjected to tax on worldwide income, and non-resident entities operating in Turkey must pay online on Turkish-derived income.
The general rate for Value-added Tax (VAT) in Turkey is 18%.
HR in Turkey
Vacation, maternity and sickness
After one year of service, employees in Turkey are entitled to annual leave depending on their length of service. Those who have worked for between one and five years are entitled to 14 days, those who have worked between five and 15 years are entitled to 20 days, and those who have worked for more than 15 years can have 26 days leave. In addition to these, there are 14.5 public holidays on which employees are not expected to work.
Pregnant women in Turkey are entitled to 16 weeks of maternity leave, eight weeks of which should be taken on either side of the birth. She can request to start her 16 weeks, three weeks before the baby is due, however. If a woman is pregnant with twins or more, this increases to 18 weeks. After the statutory maternity leave, mothers may apply for six months of additional leave however this is unpaid.
Employees in Turkey are entitled to one week of paid sick leave, upon receipt of a medical certificate. Anything over one week is unpaid, and those who are off sick for six weeks or more can have their employment contracts terminated without notice.
An additional type of leave that employees are entitled to in Turkey is Marriage leave. This is three days of paid leave for when an employee gets married. Three days of paid leave are also given in the event that an immediate family member dies.
What are the regular working hours in Turkey?
Employment law in Turkey dictates that working hours in one week cannot exceed 45 hours, and that these should be spread out over the number of days to be worked.
Offices and banks are generally open between the hours of 8.30am and 5.30pm, with a one hour closure for lunch between 12.30 and 1.30pm. Shops are open between 9am and 7pm, seven days a week, however during the summer, some shops will change their opening times to around 7am until 2pm, owing to the heat.
In the event that either employer or employee wishes to end an open ended employment contract in Turkey, they can do so as long as adequate notice periods are given. For those who have worked for six months or less the notice period is two weeks, and this increases progressively up to eight weeks for those who have worked for three years or more. Having said this, employers can terminate an employment contract with immediate effect
Understand international employment law
Learn more about HR and payroll law across the globe with our downloadable guide. We cover everything from international parental leave schemes to varying tax laws.
IRIS FMP’s Turkish Payroll and HR Solutions
Any company owner looking to expand their business into Istanbul, Ankara, Izmir or another of Turkey’s big cities, must make sure they are aware of all Turkey’s employment law. Understanding the local laws of international destinations like Turkey can be a challenge, however it is of the utmost importance especially when doing business abroad. To avoid non-compliance, seek advice from the experts here at IRIS FMP. Our services include:
- Payroll processing
- Multi-currency payroll
- Multi-language payroll
- Emailed payslips
- Payroll audits
- Pension and social security contributions
- Holiday, maternity, and sick leave
- Overseas money transfers
- Employment contracts
- HR consultancy
- Translation services
- Local law consultation
- End-of-tear tax administration
Stay compliant with Turkish employment law with IRIS FMP’s expertise
Avoid added stress at this critical time for your business expansion, by seeking advice regarding Turkish law from the experienced team at IRIS FMP. Get in touch to find out more.