Bridging Continents, Cultivating Growth

Türkiye is a transcontinental country bridging Europe and Asia, with a rich history that spans thousands of years. Once the heart of the Ottoman Empire, modern Türkiye was established in 1923 under the leadership of Mustafa Kemal Atatürk, who transformed the nation into a secular republic. This historical legacy has shaped Türkiye’s unique cultural and economic identity, blending tradition with a modern, dynamic economy.

Strategically positioned, Türkiye serves as a gateway between Europe, the Middle East, and Asia, making it an attractive destination for international businesses seeking regional access and a diversified workforce. Its economy is mixed, with strong contributions from manufacturing, automotive, textiles, agriculture, tourism, and a rapidly growing technology sector. Major commercial hubs such as Istanbul, Ankara, Izmir, and Bursa host both multinational corporations and regional headquarters.

Employment in Türkiye is governed by the Turkish Labour Law (Law No. 4857) and related social security legislation. While the regulatory framework is well established, companies must ensure compliance with labor contracts, statutory benefits, and social security contributions.

With a young, skilled workforce, competitive labor costs relative to many European markets, and a history of entrepreneurship, Türkiye offers significant opportunities for businesses aiming to expand operations, establish regional teams, or access specialized talent.

Minimum Wage

Effective 1 January 2025, the gross monthly minimum wage in Türkiye is TRY 26,005.50, with a net equivalent of approximately TRY 22,104.67.

Working Hours

The standard working week in Türkiye is five days (Monday to Friday).

• Normal workday: 9 hours, including a one-hour unpaid break.
• Common practice: 37.5 hours/week (7.5 hours/day).

Overtime

Overtime work is compensated according to Turkish labor law, typically at a premium rate above the standard hourly wage.

Payroll Costs & Contributions

Employers are required to contribute toward social security and other statutory benefits, generally totaling around 18.75% of the employee’s gross salary:

• Universal Health Insurance: 7.5%
• Long-Term Insurance Branch Premium: 11%
• Short-Term Insurance Branch Premium: 2.25%
• Unemployment Insurance: 2%
• Social Security Institution (SSI) incentive: -4% (applied if contributions are paid on time)

Income Tax

Türkiye applies a progressive income tax system. Employers withhold taxes from employee salaries based on the following brackets for 2025:

Notes

• Payroll calculations are based on the national minimum and maximum salary limits.
• Employers are responsible for withholding taxes, paying social security contributions, and complying with labor law requirements.
• For detailed guidance on employment costs or contract setup, consult official sources or your payroll provider.

Employees in Türkiye are entitled to various types of leave under the Turkish Labour Law (No. 4857), designed to support rest, family responsibilities, and personal needs.

Annual Paid Leave

• 1–5 years of service: 14 days
• 6–14 years of service: 20 days
• 15+ years of service: 26 days

Employees aged 50 or older automatically receive 20 days of leave. Workers in underground sectors (e.g., mining) are entitled to four additional days on top of their standard leave.

Public Holidays

There are 14 nationally recognized public holidays observed annually.

Sick Leave

Employees are eligible for sickness benefits from the Social Security Institution after three consecutive days of illness. Employers are not required to pay for the first two days. Employment may be terminated if sick leave extends beyond six weeks.

Maternity Leave

Female employees are entitled to 16 weeks of paid maternity leave (18 weeks in the case of multiple births), beginning eight weeks before childbirth. If the employee passes away during childbirth, unused maternity leave is transferred to her partner. After maternity leave, employees may request unpaid leave at half their weekly working hours:

• 60 days for the first birth
• 120 days for the second birth
• 180 days for the third or subsequent births

Paternity Leave

Fathers are entitled to five days of paid paternity leave.

Other Leave

• Personal/Bereavement leave: Three days for the death of an immediate family member.
• Marriage leave: Up to three days for personal marriage ceremonies.
• Adoption leave: Parents adopting a child under three years old are entitled to eight weeks of paid leave and may request up to six months of unpaid leave after the adoption is finalized.

Employment in Türkiye is governed by the Turkish Labour Law (Law No. 4857), which requires clear agreements between employers and employees. Employment contracts may be permanent (open-ended) or fixed-term, depending on the nature of the work and the mutual agreement.

Key Elements of Employment Contracts

• Written Form: While oral contracts are legally recognized, a written contract is strongly recommended to clearly outline terms, protect both parties, and comply with labor inspections.
• Content Requirements: Contracts should specify:

1. Employee and employer information
2. Job title, duties, and responsibilities
3. Salary, payment frequency, and benefits
4. Working hours, overtime rules, and leave entitlements
5. Probationary period, if applicable
6. Notice period and termination conditions

Fixed-Term Contracts

• Fixed-term contracts are allowed but require a valid justification for the limited duration.
• The maximum duration and renewal terms are subject to legal limits.
• Employees on fixed-term contracts are entitled to the same rights and benefits as permanent employees.

Termination Process

Employment contracts in Türkiye can be terminated for valid reasons, such as dishonesty, negligence, fraud, or other serious work-related misconduct. For regular terminations without cause, both employers and employees must provide notice in accordance with legal requirements.

Notice Periods

The required notice period depends on the employee’s length of service:

During the notice period, employees are entitled to their regular pay and benefits.

Severance Pay

Employees who are unfairly dismissed are entitled to severance pay equal to one month of salary for each year of service with the employer. Severance is calculated based on the employee’s most recent wages.

Probation Periods

Probationary periods must be explicitly included in the employment contract and cannot exceed two months. Through a collective agreement, probation may be extended to four months. During probation, either party may terminate the employment without notice or severance, while the employee remains entitled to pay and benefits for days worked.

Note: These dates may be subject to change based on official announcements.

Please find our Türkiye office address below:

Beytepe Mah. 2742/1 Sok. No:6 Çankaya – ANKARA

Email: info@linkcompliance.com

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Disclaimer: The content provided on this website is intended for informational purposes only and should not be considered legal or professional advice. Link Compliance makes no representations or guarantees regarding the accuracy, completeness, or reliability of the information, including any translations or interpretations. Laws and regulations are subject to change, and their application may vary. Users are strongly encouraged to consult with a qualified professional or legal advisor to address any specific questions, concerns, or issues arising from the information presented.