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Turkey is a growing and dynamic economy with a diverse, skilled workforce, particularly strong in sectors such as engineering, IT, healthcare, textiles, automotive, and tourism. With a population of approximately 85 million, Turkey offers access to both a highly educated local talent pool and a strong base of expatriates. The country is strategically located at the crossroads of Europe and Asia, making it an attractive hub for international companies.
Hiring in Turkey is governed by Turkish Labor Law (Law No. 4857), which outlines employment contracts, wages, termination procedures, and employee benefits. The process of hiring in Turkey is relatively formal, and compliance with local regulations is critical. Companies seeking to hire in Turkey can benefit from using local recruitment agencies, job boards, or AI-driven platforms like Iris to ensure faster and more efficient hiring.
Facts & Stats
Labor Laws in Turkey
The probation period for new employees in Turkey is typically up to two months, but it cannot exceed three months. During probation, either the employee or the employer can terminate the contract without a formal notice period. However, a written agreement is required to specify the terms of the probation.
In Turkey, employees who have completed at least one year of service with the same employer are entitled to paid annual leave. The minimum entitlement is 14 days for employees with 1 to 5 years of service, increasing to 20 days for 5 to 15 years, and 26 days for those with over 15 years. Workers under 18 and over 50 are granted at least 20 days of leave. Public holidays do not count toward annual leave, and employers must ensure compliance with leave entitlements.
The standard working hours in Turkey are 45 hours per week, typically distributed over six or five days. Daily working hours should not exceed 11 hours. Employees are entitled to rest breaks depending on their shift duration, ensuring well-being and productivity. Employers must track working hours and comply with labor laws to protect employee rights.
Any work exceeding 45 hours per week is considered overtime and must be compensated at 150% of the regular hourly wage. Employees may also opt for additional leave instead of monetary compensation. Overtime cannot exceed 270 hours per year, and employee consent is required for additional hours. Employers must adhere to these regulations to ensure fair labor practices.
The minimum wage in Turkey is set at 5,500 TRY per month (as of 2024). Many employers in competitive industries like IT and engineering offer higher wages, particularly in major cities like Istanbul and Ankara.
Employer and Employee Tax Contributions
15% - 40%
Employees in Turkey are subject to progressive income tax rates ranging from 15% to 40% based on annual earnings. Social security contributions are also deducted at approximately 14% of gross salary. These deductions ensure coverage for healthcare, retirement, and other social benefits.
22.5%
Employers are required to contribute approximately 22.5% of an employee’s gross salary to social security and other employer-related taxes. These contributions cover pension insurance, health insurance, unemployment insurance, and other statutory benefits. The exact rate may vary based on sector and government incentives.
18% (VAT), 15% - 40% (Income Tax)
Individuals in Turkey are subject to a value-added tax (VAT) of 18% on most goods and services. Personal income tax is progressive, ranging from 15% to 40%, depending on annual earnings. Tax regulations ensure funding for public services, healthcare, and infrastructure.
Turkey operates a mandatory pension system through the Social Security Institution (SGK). Both employers and employees contribute to the system, and employees are entitled to retirement benefits when they reach the retirement age (65 years old). The pension amount is based on the employee’s salary and total contributions during their career.
Termination Process
The termination of employment in Turkey must comply with the Turkish Labor Law. Employees can be dismissed for reasons such as poor performance, misconduct, or redundancy, but employers must follow due process.
Employees are entitled to the following notice periods based on the length of their employment:
Employees who have worked for more than 1 year are entitled to severance pay if terminated without cause. The severance pay is calculated as one month’s salary for each year of service.
Annual Leave
Employees in Turkey are entitled to 14 days of paid annual leave after one year of continuous service. The number of days increases with longer tenure, up to a maximum of 26 days for employees who have worked for more than 15 years.
Sick Leave
Employees in Turkey are entitled to 2 days of paid sick leave per month. If an employee requires more than 2 days of sick leave, they are entitled to unpaid leave unless the employer offers a different policy. Sick leave must be supported by a medical certificate.
Maternity and Paternity Leave
Female employees are entitled to 16 weeks of paid maternity leave (8 weeks before delivery and 8 weeks after). Male employees do not have statutory paternity leave, though some companies offer paid leave voluntarily.
Bereavement Leave
Employees are generally entitled to 3 days of paid bereavement leave in the event of the death of a first-degree relative (parent, spouse, child). Some companies may offer additional leave based on internal policies.
Public Holidays in Turkey
Turkey observes several national holidays:
Frequently asked questions
What makes Iris helpful for hiring in Turkey?
Iris provides AI-powered recruitment tools that help employers in Turkey quickly access and hire qualified candidates. By automating candidate screening, job posting, and shortlisting, Iris reduces the time-to-hire and ensures compliance with Turkish labour laws.
Is it mandatory to hire Turkish nationals?
There is no formal nationalization program in Turkey, but employers are encouraged to hire local talent. Hiring foreign workers requires a work permit, and employers must demonstrate that no suitable Turkish candidates are available for the role.
How is severance pay calculated in Turkey?
Employees who are dismissed without just cause are entitled to severance pay, which is typically one month’s salary for each year of service.
Do employees in Turkey receive a pension?
Yes, employees in Turkey are entitled to pension benefits under the mandatory Social Security System (SGK). Contributions to the system are made by both the employer and employee, and retirement benefits are based on the employee’s salary history and contributions.
What’s the official work week in Turkey?
The legal work week in Turkey is 45 hours, usually spread across six days. Many companies follow a 5-day work week with slightly longer daily hours to align with international business standards.
