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Payroll and Benefits Guide Turkey

Last updated: May 17, 2023

Currency
Turkish Lira (TRY)
Employer Taxes
Unknown
Payroll Frequency
Monthly
Employee Costs
15%
Capital
Ankara
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
2%
Short-Term Insurance Branch Premium (capped at 150,018.90 TRY)
11%
Pension & Disability (capped at 150,018.90 TRY)
7.5%
General Health Insurance (capped at 150,018.90 TRY)
2%
Unemployment Insurance (capped at 150,018.90 TRY)
22.50% Total Employment Cost
Employee Employee Payroll Contributions
9.00%
Pension & Disability (capped at 150,018.90 TRY)
5.00%
General Health Insurance (capped at 150,018.90 TRY)
1.00%
Unemployment Insurance (capped at 150,018.90 TRY)
15%
Total Employee Cost
Employee Income Tax
15.00%
0-110,000 TRY
20.00%
110,000 TRY- 230,000 TRY
27.00%
230,000 TRY -580,000 TRY
35.00%
580,000 TRY -3,000,000 TRY
40.00%
3,000,000 TRY and above

 

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The Gross minimum wage in Turkey is now 20,002.50 TRY a month (17,002.12 TRY net minimum wage).

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

In Turkey, the payroll frequency is monthly. Work between the first and last day of the month is typically paid on the last day of the month.

13th Salary

In Turkey, there is no legal requirement for 13th-month payments.

Authority Payment

Paid To

Due Date

Method

Social Security

Social Security Institution

Last working day of the following month

Via local banks in Turkey

Tax

Tax Office

26th of the following month

Via public banks in Turkey

Working Hours

General

The standard working week in Turkey consists of 45 working hours. These hours can be distributed in any way over the week, provided an employee does not work for more than 11 hours in one single day.  The average working day can be 7.5 hours for 6 days a week or 9 hours for 5 days a week.

Overtime

If work time limits are passed, overtime compensation is compulsory. The maximum number of overtime hours is 48 hours per working week.
Overtime is due after working the maximum 45 hours in one week and is paid at the statutory rate of 150% of the employee’s regular pay if the overtime is worked on a weekday and 200% of the employee’s standard pay rate if the work is carried out on the weekend. Overtime can also be given as time off in lieu.

There is an overtime limit of up to 270 hours per year, along with the requirement to obtain employees’ consent for overtime work.

Leave

Annual Leave (vacation)

Paid leave in Turkey is set in the employment contract as a minimum of 14 working days of paid leave a year (following completion of 1-year service) in addition to public holidays. This increases to 20 working days of paid leave when the employee has completed between five- and fifteen years of service, and subsequently, employees with fifteen or more years of service are entitled to 26 working days of paid leave per year.

The length of annual leave with pay may be increased by employment contracts and collective agreements, except for employees below the age of eighteen and above the age of fifty, where the length of paid annual leave must not be fewer than twenty days.

The employer must pay the annual leave entitlement as a lump sum or as an advance payment before the beginning of the leave.

Annual Leave allowance is accrued from each worker’s individual service date,  not according to calendar year.

Public Holidays

Public holidays falling on weekends are lost.

Religious holidays are determined by the lunar cycle and will show as ‘tentative’ until they are confirmed nearer the date of the holiday.

Written consent from the employee is required to request the employee work on public holidays. Employees shall be entitled to the full day’s wage of the holiday day, without any work obligation in return. If they work instead of observing the holiday, regardless of how many hours they worked, they shall be paid an additional full day’s wage for each day worked.

Date Day Holiday Notes
1 Jan 2024 Monday New Year
9 Apr 2024 Tuesday Ramadan Eve Half Day
10 Apr 2024 Wednesday Ramadan Holiday
11 Apr 2024 Thursday Ramadan Holiday
12 Apr 2024 Friday Ramadan Holiday
23 Apr 2024 Tuesday National Sovereignty and Children’s Day
1 May 2024 Wednesday Labor and Solidarity Day
19 May 2024 Sunday Commemoration of Atatürk, Youth and Sports Day
17 Jun 2024 Monday Feast of Sacrifice
18 Jun 2024 Tuesday Feast of Sacrifice
19 Jun 2024 Wednesday Feast of Sacrifice
15 Jul 2024 Monday Democracy and National Unity Day
30 Aug 2024 Friday Victory Holiday
28 Oct 2024 Monday Republic Holiday
29 Oct 2024 Tuesday Republic Holiday

Sick Days

There is no mandatory obligation for the employer to pay the employee during sick leave, however, in general, employees are paid by Social Security after 3 days of sickness and upon production of the confirmative medical reports. In practice, many employers pay regular salary for the first 2 days (which are not covered by Social Security) or for the entire period of sick leave (and get a partial refund when paid by Social Security).
If sick leave exceeds six weeks beyond the notice periods determined in labor law. In that case, an employment contract may be terminated without notice, as in accordance with Article 46(c) of the Turkish Labor Code.

Maternity Leave

Working mothers are entitled to 16 weeks (extended to 18 weeks in cases of multiple/complicated pregnancies) of maternity leave at full pay, usually taken eight weeks before the due date and eight weeks after. Employees can request to work up until three weeks before the due date with all remaining leave moved to post-delivery.
Payment during maternity leave comes from social security, according to the regular contributions of the employee.
Also, employees may be allowed to work part-time following the birth of the child, with the amount of leave dependent on how many children the employee has (in total):
One child – 60 days of leave
Two children – 120 days of leave
More than two children – 180 days of leave
In case of disability or adoption, the leave period is up to 360 days.

Paternity Leave

The father/partner is entitled to 1 week of paid paternity leave after the child’s birth.

Parental Leave

If both parents are employed, they are entitled to work part-time until the child starts primary school. The employee is required to provide an employer with written notice of the request at least a month in advance.
Parents are also entitled to up to 10 days of leave to attend treatment/medical appointments for a child with a disability or chronic disease.

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave, once approved between the employer and employee, for the following:

  • Bereavement Leave: Employees are entitled to three days of paid leave in the event of the death of an immediate family member
  • Military leave: Employees are entitled to up to 90 days of paid leave per year when called up for military exercises or the performance of a statutory obligation, other than compulsory military service
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to how the employment agreement and collective agreement are in place and is based on the type of contract and reason for termination.

Notice Period

In Turkey, the notice period is dependent on the employee’s length of service as below:
0 – 6 months of service – 2 weeks’ notice
6 – 18 months of service – 4 weeks’ notice
18 – 36 months of service – 6 weeks’ notice
More than 36 months – 8 weeks’ notice

Severance Pay

Generally, employees who worked more than one year and were unfairly dismissed (or resigned due to just cause) are entitled to severance pay. Under Turkish Labor Law employees are entitled to severance pay upon completing one year with the same employer.

Severance pay is calculated as the monthly wage multiplied by each completed year of employment. Any remaining months and days are also included in the severance pay calculation. The wage considered in this calculation is the gross wage. A ceiling amount has been determined for the gross wage, including the seniority basis wages. The severance pay ceiling, which is determined as the retirement bonus of the highest civil servant, is updated every year with the salary hike of civil servants twice a year.

Severance pay for the employees who have been terminated and deserved severance pay should be calculated considering the seniority ceiling determined as gross 35,058.58 TRY (effective from 01.01.2024 – 30.06.2024).

Probation Period

Probation or trial periods are generally set within the employee’s employment contract, however, standard practice in Turkey is two months. During probation, no notice is required.

Common Benefits

  • Pension Allowance
  • Health Insurance Allowance (annual private health insurance estimated cost 600-1,000 USD)
  • Meal allowance (minimum of 55TL)

VISA

VISA

A Turkish Work Visa provides authorization for foreigners to move to Turkey for employment purposes. A work visa must be obtained alongside a work permit, without which foreigners cannot work in Turkey. Aside from nationals of the Turkish Republic of Northern Cyprus, all citizens need a work visa and a work permit to work in Turkey.
Applications cannot start without having a definite job offer in Turkey.
The application needs to be filed to the Turkish embassy or consulate in the foreigner’s country of residence. Within ten days of the application, the new employer should submit additional documentation to the Turkish Ministry of Labour and Social Security (MLSS).
Depending on the field of employment in Turkey, a different type of work visa is required:

  • Employment Purpose/Special Employment Purpose
  • Assigned Lecturers/Academics
  • Assigned Sportsperson
  • Assigned Artists
  • Assigned Free Zone Workers
  • Assigned Journalists
  • Montage and Repairman Purposes

Remote Work

The Turkish Remote work legislation defines this as work performed outside the employer’s workplace using technology.

There is an obligation to establish a written remote work agreement including the location where the job will be performed, the working hours, the communication methods between the employer and the employee, any additional compensation related to the telework, the equipment that will be provided, etc.

The employer is required to provide teleworkers with the necessary tools and equipment to perform the job. Expenses related to telework should be reimbursed by the employer to the employee. Compensation for such expenses should be agreed upon between the employee and reflected in the employment contract.

Employees can start working remotely upon hiring or may be hired to work on-site and agree with the employer to be converted to remote work at a later date and the employment contract should reflect this change when applicable.

Mutual consent of both the employee and the employer is needed to switch from on-site work to remote work unless unforeseen circumstances. In such cases, employers can unilaterally decide that employee should work remotely.

VAT

General

The standard rate of VAT in Turkey is 18%.

Stay up to date on payroll & employment law changes

Version History

June 28, 2023
Minimum wage has been updated
January 12, 2023
The gross minimum wage in Turkey is now 10,008.00 TRY a month (8,506.80 TRY Net minimum wage).
Employee income tax brackets have been updated.
July 1, 2022
The gross minimum wage in Turkey has increased to 6,471 TRY a month (5,500.35 TRY Net minimum wage).
March 21, 2022
The Gross minimum wage in Turkey increased to 5,004 TRY a month.
February 22, 2022
The gross minimum wage in Turkey increased to 4,250 TRY.
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Income Tax: Parameters on income tax were adjusted.
Minimum wage: rose to 2,826 TRY.
More

Questions & Answers

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Adnan S
Adnan S
2 years ago

Is it possible to pay Turkish employees in a currency that is not the Turkish Lira?

Erez Greenberg
Erez Greenberg
2 years ago
Reply to  Adnan S

Hi Adnan, This depends on if the employee is a citizen or not. Turkish citizens must be paid in local currency while non-citizens can have contractual agreements that allow for a foreign currency.

Alex
Alex
2 months ago
Reply to  Erez Greenberg

hello, sorry I jump in this conversation. Is it possible to send the official/legal source that prevents to pay Turkish citizens in other currencies? Many thanks

Enny Shmurin
Admin
Enny Shmurin
26 days ago
Reply to  Alex

Terms of currency of payment can be found in Communiqué No. 2008-32/34, Communiqué No. 2022-32/66.

Swathi
Swathi
1 year ago

If the public holiday falls on a weekend should a replacement holiday be provided?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Swathi

No, it is lost.

S.Deivakumar
S.Deivakumar
1 year ago

Even Foreign employees would get pension? If so after how many of service they are entitled.

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  S.Deivakumar

A foreign national who remains covered under the social security system of one’s home country is not required to pay Turkish social security premiums up to a maximum period of
3 months. If there is a social security treaty between the home country and Turkey, the exemption period may be longer. If the employee is not subject to foreign social security, full contributions will generally be imposed in Turkey.

Devika K
Devika K
1 year ago

What should be the frequency of the increments given to employees in Turkey.

Enny Shmurin
Admin
Enny Shmurin
12 days ago
Reply to  Devika K

In Turkey, there are no fixed or standardized types of salary increases. The specifics of salary adjustments can vary based on individual employment contracts, company policies, and negotiations between employers and employees.

Mahmood
Mahmood
10 months ago

What is the employer costs on Commission in Turkey?

Enny Shmurin
Admin
Enny Shmurin
12 days ago
Reply to  Mahmood

Commission bears the same type of employer cost as any other form of income, such as salary or allowances.

Jeffri Barnard
Jeffri Barnard
9 months ago

We have 2 different scenarios to confirm. I wanted to confirm if we pay a relocation allowance to an employee, that should be ran through payroll for taxes. Whereas if we are reimbursing a tuition cost, that would not be reported on payroll and instead paid via accounting, no taxes. Correct? Than you.

Enny Shmurin
Admin
Enny Shmurin
12 days ago
Reply to  Jeffri Barnard

Any type of allowances should be recorded in payroll, and taxes should be paid accordingly. This is a question that should be reviewed by a local accountant or payroll specialist.

Aleks
Aleks
8 months ago

Are there any requirements for a diploma if an employee requests for a work visa & work permit?

Enny Shmurin
Admin
Enny Shmurin
7 months ago
Reply to  Aleks

Yes, a graduation certificate with Turkish translation is required.

T.L.
T.L.
7 months ago

Do foreign employees have to be enrolled under local payroll in turkey?

Last edited 7 months ago by T.L.
Enny Shmurin
Admin
Enny Shmurin
7 months ago
Reply to  T.L.

It will depend on the set up of the worker/company. However, generally a worker will need to be set up on local payroll in order to pay taxes and receive payroll contributions.

Alex
Alex
2 months ago

Concerning the working from home expenses. What is the usual practice? Is it a monthly allowance paid to the employee or are the expenses paid upon receipts ? Is it a fixed amount per days at home?

What is the average amount of what is paid by the employer to the employee for working from home ?

thanks

Enny Shmurin
Admin
Enny Shmurin
26 days ago
Reply to  Alex

It is possible to cover home working costs either as an allowance or as reimbursement. In both cases, tax would be applied.

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Payroll and Benefits Guide in Turkey

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Payroll and Benefits Guide
in Turkey

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Turkey
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year
9 Apr 2024 Tuesday Ramadan Eve Half Day
10 Apr 2024 Wednesday Ramadan Holiday
11 Apr 2024 Thursday Ramadan Holiday
12 Apr 2024 Friday Ramadan Holiday
23 Apr 2024 Tuesday National Sovereignty and Children’s Day
1 May 2024 Wednesday Labor and Solidarity Day
19 May 2024 Sunday Commemoration of Atatürk, Youth and Sports Day
17 Jun 2024 Monday Feast of Sacrifice
18 Jun 2024 Tuesday Feast of Sacrifice
19 Jun 2024 Wednesday Feast of Sacrifice
15 Jul 2024 Monday Democracy and National Unity Day
30 Aug 2024 Friday Victory Holiday
28 Oct 2024 Monday Republic Holiday
29 Oct 2024 Tuesday Republic Holiday