Hiring someone in Turkey is straightforward in principle and detailed in practice. A company can find the right person quickly, but turning that into a compliant, paid, legally employed worker means navigating Turkish Labour Law, a social security system that resets its numbers every year, an income tax method that quietly changes take-home pay month by month, and, for foreign nationals, a work permit regime with a hard local-employment ratio attached. This guide sets out what an international company needs to know to employ staff in Turkey in 2026, what it actually costs, and how to put people on the payroll without first setting up a local entity.
Most companies arrive at this question one of two ways. Either they have found a Turkish national they want to hire, often an engineer, developer, or commercial hire, and need a legal way to employ and pay them. Or they want to deploy a foreign specialist into Turkey for a project or a regional role. The rules differ sharply between the two, and both are covered below.
Turkey employment law overview
Employment in Turkey is governed primarily by Labour Law No. 4857, supplemented by the Code of Obligations for certain categories of staff and, for foreign workers, by the International Labour Force Law No. 6735. The framework is protective of employees, prescriptive on termination, and administered through the Social Security Institution, known by its Turkish initials SGK.
Two features shape everything that follows. First, Turkey runs persistently high inflation, which means the minimum wage, the social security ceiling, the severance cap, and the tax brackets are all revised at least annually and sometimes mid-year. Any figure used for planning has a shelf life. Second, employment is heavily formalised: contracts, payroll, social security, and termination all run through documented, state-monitored processes, and informal arrangements carry real penalties.
Employment contracts
Employment contracts in Turkey can be indefinite or fixed-term. Indefinite-term contracts are the default. Fixed-term contracts are only valid where there is an objective reason for a defined term, such as a specific project or a temporary replacement, and repeatedly renewing a fixed-term contract without justification can cause it to be treated as indefinite.
Contracts should be in writing and in Turkish, and for foreign employees a Turkish-language contract is part of the work permit file. A contract that does not specify a duration is treated as indefinite. There is no statutory thirteenth-month salary in Turkey, though bonuses and additional payments are common by custom or collective agreement and, once granted regularly, can become an established entitlement.
Working hours, overtime and leave
Working hours
The standard working week is 45 hours, typically spread across six days but commonly arranged over five. Hours worked above 45 in a week are overtime.
Overtime
Overtime is paid at 150% of the normal hourly rate. It requires the employee's written consent, and total overtime is capped at 270 hours per year. Employees can alternatively take compensatory time off in place of overtime pay where agreed.
Annual leave
Paid annual leave depends on length of service and accrues once an employee has completed one full year, which includes the probation period. The statutory minimums are set out below and can be increased by contract or collective agreement but never reduced.
| Length of service | Minimum paid annual leave |
|---|---|
| 1 to 5 years | 14 working days |
| More than 5 and up to 15 years | 20 working days |
| 15 years or more | 26 working days |
| Aged under 18 or 50 and over | 20 working days minimum, regardless of service |
Annual leave is in addition to Turkey's official national and religious public holidays.
Maternity, paternity and family leave
A notable point for budgeting is that maternity pay in Turkey is funded by social security, not by the employer. Female employees are entitled to 16 weeks of maternity leave, extended to 18 weeks for a multiple or complicated pregnancy, usually taken as eight weeks before the birth and eight weeks after, with payment made by SGK based on the employee's contributions rather than by the employer. After the paid period, an employee may request up to six months of unpaid leave, and a daily breastfeeding allowance of 1.5 hours applies for a child under one year old.
Fathers receive five days of paid paternity leave. Employees are also entitled to three days for their own marriage, three days for bereavement, and adoptive parents of a child under three receive eight weeks of leave. Sick leave is supported by SGK once a medical report is provided.
Pay, minimum wage and the inflation context
The 2026 national minimum wage is gross TRY 33,030 per month, equivalent to net TRY 28,075.50 after social security and tax, a 27% increase on 2025 (L&E Global). On a gross basis that is roughly TRY 1,101 per day and TRY 396,360 per year.
What matters for an employer is the total cost of employment, which sits well above net pay. At the minimum wage, the all-in employer cost in 2026 is approximately TRY 40,214 per month once social security and unemployment contributions are added, before any allowances, bonuses, or severance accrual. The gap between what the employee receives and what the employer pays is around 44%, so budgeting on net pay understates the real cost significantly.
A planning caution specific to Turkey: although the 2026 minimum wage was set as a single annual figure, the country has a track record of mid-year increases when inflation outpaces forecasts. Employers should treat the wage, and everything indexed to it, as potentially subject to revision during the year.
Income tax and the cumulative withholding system
Employment income is taxed progressively, with 2026 rates running from 15% up to 40% across a series of brackets that are adjusted annually for inflation under the relevant Income Tax Communiqué (PwC Türkiye tax summaries). The employer withholds and remits this tax through payroll.
The feature that surprises foreign employers is the cumulative method. Turkey applies the progressive brackets to cumulative earnings across the calendar year rather than at a flat monthly estimate. An employee can start the year in the 15% band and move into higher bands as their year-to-date income grows, which means net take-home pay falls gradually through the year before resetting in January. This is normal and lawful, but it should be explained to a new hire who expects a steady monthly net figure.
A small additional levy, stamp tax, applies to salary at 0.759% of gross. The portion of any salary corresponding to the minimum wage is exempt from both income tax and stamp tax, a relief introduced in 2022 and still in force.
Social security (SGK) and employer costs
Social security in Turkey is administered by SGK and funds pensions, health, unemployment, and occupational coverage. Contributions are split between employer and employee. The standard 2026 rates are an employer contribution of 20.5% plus 2% for unemployment insurance, and an employee contribution of 14% plus 1% for unemployment insurance (PwC Türkiye tax summaries). Eligible employers receive a reduction of up to four points in their share through a Treasury-supported incentive, which was narrowed for some sectors in 2026.
Contributions are calculated on a salary base with a floor and a ceiling. As of 1 January 2026 the base runs from a minimum of TRY 33,030 to a maximum of TRY 297,270 per month, the ceiling being nine times the minimum wage following a change that lifted it from seven and a half times. Earnings above the ceiling do not attract further SGK contributions.
Foreign nationals who remain covered under their home country's social security system are not required to pay Turkish premiums for up to three months from the start of employment, and that exemption can be longer where a social security treaty exists between Turkey and the home country.
Severance and notice
Turkey has two separate and independent end-of-employment payments, and it is a common error to treat them as alternatives. They can both arise from the same termination.
Severance pay, kıdem tazminatı, rewards length of service. It is 30 days of gross salary for each full year of service, pro-rated for partial years, and an employee must have completed at least one year of service to qualify. It is payable when the employer terminates other than for serious misconduct, and when the employee resigns for a justified reason such as military service or retirement, but not on an ordinary resignation. There is a statutory ceiling, updated every six months, that caps the monthly salary figure used in the calculation. For the period 1 January to 30 June 2026 the ceiling is TRY 64,948.77 per year of service, and it is reset again from 1 July.
Notice pay, ihbar tazminatı, compensates for ending an indefinite contract without working the required notice period. The statutory notice periods scale with service:
| Length of service | Notice period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months to 1.5 years | 4 weeks |
| 1.5 to 3 years | 6 weeks |
| More than 3 years | 8 weeks |
If the notice period is not worked, the terminating party pays compensation equal to the salary and benefits for that period. Severance accrues as a real liability from the first completed year, so a workforce in Turkey carries a growing severance obligation that should be tracked from the outset, not discovered at termination.
Probation and job security
A probation period of up to two months can be agreed at the outset, extendable to four months by collective agreement. During probation either party can terminate without notice.
Beyond probation, job security provisions apply in workplaces with at least 30 employees to staff who have at least six months of service on an indefinite contract. For those employees, a dismissal requires a valid reason, and an unfair dismissal can lead to a reinstatement claim with compensation. This matters for any company that scales past 30 employees in Turkey, because termination shifts from a notice-and-pay exercise to a process that must be properly documented and justified.
Employing foreign nationals: work permits
Hiring a Turkish national does not require a work permit. Deploying a foreign national does, and this is where an overseas company's own plan most often runs into a wall.
The employment of foreigners is governed by the International Labour Force Law No. 6735. A work permit is employer-sponsored, applied for jointly by the employer and the worker, and processed by the Ministry of Labour and Social Security through its e-İzin system, typically within around 30 working days. As of 2026 the work permit also serves as the holder's residence permit for its validity, removing a separate residence step. Initial permits are usually granted for up to one year, then extended.
Two requirements drive the difficulty. The first is a set of role-based minimum salaries, expressed as multiples of the minimum wage and excluding benefits, that must be met and maintained for the permit to stand:
| Role | Minimum salary (multiple of minimum wage) | 2026 monthly gross |
|---|---|---|
| Senior managers and pilots | 5x | TRY 165,150 |
| Engineers and architects | 4x | TRY 132,120 |
| Department managers | 3x | TRY 99,090 |
| Specialists and teachers | 2x | TRY 66,060 |
| Other roles | 1x | TRY 33,030 |
The second, and the harder one, is a local-employment ratio. As a general rule the sponsoring workplace must employ at least five Turkish citizens for each foreign worker, alongside a minimum paid-in capital threshold for the employing company. A newly formed entity cannot satisfy a five-to-one ratio on day one because it has no Turkish staff yet, which makes sponsoring a foreign hire through a brand-new local company effectively impossible until a Turkish workforce is already in place. Employing a foreign national without a permit carries a 2026 administrative fine in excess of TRY 100,000 per worker, so this is not a corner to cut. For high-value talent, the Turquoise Card offers a route to indefinite work authorisation, but it is a narrow, qualifying-criteria pathway rather than a general solution.
2026 Turkey employment cost and compliance reference
The figures below are the load-bearing numbers for planning a hire in Turkey in 2026, collected as a single dated reference.
| Item | 2026 position | Effective / note |
|---|---|---|
| Minimum wage (gross) | TRY 33,030 per month | 1 Jan 2026; mid-year revision possible |
| Minimum wage (net) | TRY 28,075.50 per month | 1 Jan 2026 |
| Employer cost at minimum wage | Approx. TRY 40,214 per month, all-in | 2026, with 2-point incentive |
| Employer social security | 20.5% SGK + 2% unemployment | Reducible by up to 4 points |
| Employee social security | 14% SGK + 1% unemployment | In force |
| SGK contribution base | Min TRY 33,030, max TRY 297,270 per month | 1 Jan 2026 (ceiling = 9x minimum wage) |
| Income tax | Progressive 15% to 40%, applied cumulatively | 2026 brackets; minimum wage portion exempt |
| Stamp tax on salary | 0.759% of gross | Minimum wage portion exempt |
| Standard working week | 45 hours; overtime at 150%, capped 270 hrs/yr | Written consent required for overtime |
| Annual leave | 14 / 20 / 26 days by service tenure | After 1 completed year |
| Maternity leave | 16 weeks (18 for multiple), paid by SGK | In force; not an employer cost |
| Probation | Up to 2 months (4 by collective agreement) | In force |
| Severance pay | 30 days' gross pay per year of service | Ceiling TRY 64,948.77 (Jan to Jun 2026) |
| Notice period | 2 to 8 weeks by service tenure | Notice pay if not worked |
| Foreign work permit | Employer-sponsored; role-based salary 1x to 5x minimum wage; ~5:1 local ratio | Law No. 6735; ~30 days via e-İzin |
Citation: Aspirock (2026), "2026 Turkey Employment Cost and Compliance Reference," aspirock.com. Compiled from the Official Gazette, the Ministry of Labour and Social Security, SGK, the Turkish Revenue Administration, and published legal and payroll sources; figures current at publication and subject to revision. Free to cite with attribution and a link to this page.
Compliance changes to watch in 2026
Two dates sit close to the time of writing. The severance pay ceiling resets on 1 July 2026, lifting the cap used in severance calculations, and the minimum wage may be revised mid-year if inflation runs ahead of forecast, with any change usually appearing in the Official Gazette around mid-year. Separately, the 2026 reforms that took effect on 1 January raised the social security earnings ceiling to nine times the minimum wage, increased the long-term insurance premium, and narrowed the Treasury-supported employer incentive for non-manufacturing sectors. Because so many figures are indexed to the minimum wage, a single mid-year wage revision cascades into social security, severance, and work permit salary thresholds at once.
Hiring in Turkey without a local entity
Companies that want to employ in Turkey without incorporating typically use an Employer of Record. The EOR holds the local employment relationship, employs the staff on its books, and runs the parts that carry the compliance risk: written Turkish-language contracts, SGK registration and monthly contributions, income tax and stamp tax withholding through payroll in lira, leave and entitlement tracking, and severance and notice administration on exit.
Turkey is a case where incorporating a company is comparatively quick, but standing up the machinery behind it is not. A registered company still needs SGK registration, compliant monthly payroll, correct cumulative tax withholding, and the ongoing administration of severance accruals and statutory leave. For foreign-national hiring the picture is harder still, because the five-to-one local-employment ratio and the role-based salary thresholds mean a new entity cannot sponsor a foreign worker until it already employs a Turkish workforce. For companies hiring a handful of local staff, or testing the market, an EOR removes the standing overhead and the ratio problem in one step, while keeping day-to-day direction of the employee with the client.
About Aspirock
Aspirock is an Employer of Record and global payroll provider operating in Turkey and 70+ countries worldwide, with 22 years of operational experience and offices across the GCC, Europe, and the Americas. In Turkey, Aspirock provides Employer of Record services that cover compliant employment contracts, SGK registration and contributions, income tax and stamp tax withholding, monthly payroll in lira, leave and entitlement management, and severance and notice administration, so international companies can employ staff without setting up a local entity. To discuss employing people in Turkey, get in touch.
Frequently asked questions
Can a foreign company employ staff in Turkey without a local entity?
Yes. A company can employ staff in Turkey without incorporating by using an Employer of Record, which holds the local employment relationship, registers the employee with SGK, runs compliant payroll in lira, withholds income and stamp tax, and manages leave, severance, and notice. The client retains day-to-day direction of the employee while the EOR carries the legal employer obligations. This is the standard route for companies hiring a small number of local staff or testing the Turkish market before committing to their own entity.
How much does it cost to employ someone in Turkey in 2026?
Beyond gross salary, the main employer cost is social security at 20.5% plus 2% unemployment insurance, reducible by up to four points for eligible employers, calculated on a base capped at TRY 297,270 per month in 2026. At the 2026 minimum wage of TRY 33,030 gross, the all-in employer cost is approximately TRY 40,214 per month. Employers should also account for accruing severance, which builds at 30 days of gross pay per year of service from the first completed year. Budgeting on net pay understates the real cost by around 44%.
Why does my Turkish employee's net salary decrease during the year?
Turkey applies its progressive income tax brackets cumulatively across the calendar year rather than at a flat monthly rate. As an employee's year-to-date earnings rise, they move from the 15% band into higher bands up to 40%, so the tax withheld each month increases and net take-home pay falls gradually through the year before resetting in January. This is normal and lawful, and worth explaining to a new hire who expects a constant monthly net figure.
How is severance pay calculated in Turkey?
Severance pay is 30 days of gross salary for each full year of service, pro-rated for partial years, and is payable once an employee has completed at least one year. It is due when the employer terminates other than for serious misconduct, and when an employee resigns for a justified reason such as retirement or military service, but not on an ordinary resignation. A statutory ceiling, updated every six months, caps the monthly salary used in the calculation, set at TRY 64,948.77 for the first half of 2026. Severance and notice pay are separate obligations and can both apply to the same termination.
Can an Employer of Record sponsor a work permit for a foreign national in Turkey?
Work permits for foreign nationals in Turkey are employer-sponsored under International Labour Force Law No. 6735 and carry strict conditions, including role-based minimum salaries from one to five times the minimum wage and, as a general rule, a requirement to employ around five Turkish citizens for each foreign worker. Because of the local-employment ratio and other criteria, foreign-national sponsorship is materially harder and more constrained than employing Turkish nationals, and the right structure depends on the specific role and headcount. Companies planning to deploy a foreign national into Turkey should take advice on the route before committing to a start date.
How long does it take to hire someone in Turkey through an EOR?
For a Turkish national, onboarding through an Employer of Record is fast, usually a matter of days once the contract terms are agreed, because no work permit is required and the steps are contract issuance, SGK registration, and payroll setup. For a foreign national the timeline is longer and depends on the work permit, which is processed through the Ministry's e-İzin system in roughly 30 working days where the salary and local-ratio conditions are met. Setting a realistic start date means accounting for the permit timeline rather than the local-hire timeline.
Do employees in Turkey get a thirteenth-month salary?
There is no statutory thirteenth-month salary in Turkey. Additional payments and bonuses are common by custom or under collective agreements, and a bonus paid regularly over time can become an established contractual entitlement. Employers should set out clearly in the contract whether any bonus is discretionary or guaranteed to avoid it being treated as a fixed part of pay.
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