Employer of Record (EOR) in Turkey
An EOR in Turkey allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Turkey.
Quick Overview of EOR in Turkey
Expanding into Turkey doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Turkey's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions under the Social Security Institution (SGK), so you can focus on growing your business without the need to set up a costly local entity.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Turkey can involve significant upfront costs including legal fees, company registration, obtaining tax identification numbers, and setting up local bank accounts — plus the ongoing overhead of maintaining local HR, legal, and accounting functions. By partnering with an EOR, you can avoid these setup costs and enter the market faster. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations governed primarily by Turkish Labor Law No. 4857 and the Social Insurance and General Health Insurance Law No. 5510.
How an EOR Works
Atlas HXM provides EOR services that ensure your business remains compliant with Turkey's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Turkish rules, and configuring payroll and statutory obligations correctly.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with Turkish Labor Law No. 4857. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:
Job title and responsibilities
Salary, benefits, and working hours
Leave entitlements and notice periods
Termination terms and conditions
Payroll & Benefits Management
Payroll is processed in Turkish Lira (TRY), including:
Accurate tax withholdings and social security contributions to the SGK
Statutory benefits such as annual leave pay, maternity benefits, and pension contributions
The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Turkey's laws.
Ongoing HR Support
Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.
What to Choose: EOR vs PEO
Work Life in Turkey
Turkey's employment framework is designed to balance operational needs with strong employee protections. Here's what you need to know:
Employment Types:
Permanent: Ongoing employment for an indefinite term with full statutory benefits and strong job security protections. Any contract that does not include a fixed term is deemed to be concluded for an indefinite period.
Fixed-Term: Hired for a specific project or defined duration, with written contracts required for terms of 1 year. fixed-term employment contracts cannot be made more than once successively (continuously) unless there is a substantial reason
Probation Periods: The maximum probation period is 2 months, extendable to 4 months by collective agreement. During probation, both parties may terminate the contract without notice or severance of pay, though the employee retains entitlement to wages and rights for days worked. Probation periods must be explicitly stated in employment contracts, and the EOR ensures that all terms comply with Turkish labor law.
Working Hours & Overtime: In Turkey, the maximum workweek is 45 hours, with a maximum of 11 hours per day where parties have agreed to a flexible arrangement.
The Standard workweek is 40 hours
Employees must not exceed 270 hours of overtime per calendar year.
Overtime is paid at 150% of the normal hourly rate, with the option for employees to take 1.5 hours of time off in lieu of each overtime hour worked.
Prohibited Employees:
Certain individuals are legally prohibited from working overtime, including:
Workers under 18 years of age, Pregnant, postpartum, or breastfeeding women , Employees with a medical certificate stating they cannot endure overtime work
The EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | 14 days (1–5 years); 20 days (5–15 years); 26 days (15+ years) | Regular salary; accrual after 1 year of service; employees under 18 or over 50 receive a minimum of 20 days |
Maternity Leave | 24 weeks (8 weeks before and 16 weeks after delivery; extended for multiple births) | Paid by the state through the Social Security Institution (SSI), locally known as the Sosyal Güvenlik Kurumu or SGK Payment: a temporary incapacity allowance (maternity pay) equivalent to two-thirds 2/3 of your gross average salary. |
Paternity Leave | 10 days | Paid leave; must be taken following the birth |
Sick Leave | sick leave is granted based on medical need rather than a set annual quota. While employers are not legally required to pay full salaries during illness, eligible employees can receive two-thirds of their daily earnings from the state starting on the third day, provided they have medical documentation | Days 1 and 2: The employer is not obligated to pay wages for the first two days of sick leave. Many companies offer this as a supplemental benefit, but by law, it is unpaid. Day 3 Onward: The state’s Social Security Institution (SGK) pays a "temporary incapacity allowance," which equals roughly 66.7% of the employee's gross daily income |
Public Holidays | All statutory national and religious holidays | 200% pay for work on public holidays |
Payroll & Benefits: Wages must be paid in Turkish Lira (TRY) no later than the 20th day of the following month. Atlas HXM manages payroll in TRY, SGK contributions (employer and employee), unemployment insurance premiums, income tax withholding, and statutory benefits. Supplemental benefits can include private health insurance, meal allowances, transportation allowances, and performance bonuses.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Turkey's labor laws while businesses can focus on operations without administrative burdens.
What to Choose: Indirect vs Direct EOR
Taxes & Compliance
Turkey operates on a calendar-year tax system, running from January 1 to December 31. Employers must submit monthly withholding tax declarations (Muhtasar Beyanname) by the 26th of the following month, SGK declarations by the 23rd, and SGK contribution payments by the 26th. Annual income tax returns for individuals with additional income are due by March 31, with payments in March and July. Corporate tax returns are due by end of April, and VAT returns are filed monthly by the 26th.
Category | Details |
|---|---|
Employer Payroll Contributions | SGK Employer Contribution: 15.5% of gross salary
|
Employee Payroll Deductions | SGK Employee Contribution: 14% of gross salary
|
Personal Income Tax Rates (2025) | Up to TRY 158,000: 15%
|
Pension System | Administered by SGK; retirement age 60 (male) and 58 (female); requires 7,200 days of contributions; voluntary private pension (BES) with 30% government matching contribution up to TRY 72,009 |
VAT & EOR Costs: Turkey applies a standard VAT rate of 20% to most goods and services, including EOR service fees charged by Turkish-registered providers. Reduced rates of 10% and 1% apply to certain categories. VAT-registered client companies may be able to recover input VAT depending on their business activities. Where an EOR provider is based outside Turkey, the reverse charge mechanism may apply. Salary recharges from the EOR to the client are generally not subject to VAT, though specific treatment should be confirmed with a qualified Turkish tax advisor.
Atlas HXM handles tax compliance, including progressive income tax calculations, SGK contributions, monthly and annual filings, stamp duty obligations, and expatriate tax planning, ensuring businesses remain compliant with local laws while minimizing administrative burden.
Termination
Employees must give written notice for termination, with statutory notice periods based on length of service: 2 weeks (up to 6 months), 4 weeks (6 months to 1.5 years), 6 weeks (1.5 to 3 years), and 8 weeks (over 3 years).
During the probationary period (up to 2 months), either party may terminate without notice or severance.
Severance pay is required for employees with at least 1 year of service who are dismissed without just cause, calculated at 30 days' gross salary per year of service.
Strong employee protections exist during pregnancy, sick leave, and union activities.
The EOR helps ensure proper handling of terminations, including notice periods, severance calculations, final wages, and required documentation.
5 Things to Look for in an EOR Provider in Turkey
Local expertise and knowledge of Turkish labor laws, SGK requirements, and immigration regulations.
Advanced technology for payroll, reporting, and HR system integration.
Experience in your industry.
Strong compliance track record and relationships with Turkish government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2026, Atlas HXM combines compliance, technology, and global expertise.
FAQs
How quickly can I hire employees in Turkey through an EOR?
You can typically hire employees within 1–2 weeks, compared to several months required for establishing a local legal entity in Turkey.
What is the minimum wage in Turkey?
Effective January 1, 2025, Turkey's monthly gross minimum wage is TRY 26,005.50, with a net monthly minimum wage of TRY 22,104.67 after taxes and deductions.
Are there restrictions on terminating employees in Turkey?
Yes, Turkey has strong employee protection laws requiring proper written notice, just cause where applicable, and severance pay for employees with at least 1 year of service.
Is 13th month pay mandatory in Turkey?
No, Turkish labor law does not mandate 13th month pay. However, some employers voluntarily offer it or include it in employment contracts, at which point it becomes a binding obligation.
What are the main employer payroll contributions in Turkey?
Employers contribute approximately 17.5% of gross salary, covering SGK contributions (15.5%) and unemployment insurance (2%).
What is the standard annual leave entitlement in Turkey?
Employees are entitled to 14 days after 1–5 years of service, 20 days after 5–15 years, and 26 days after more than 15 years of continuous service.