Turkiye Labor Law Guide for Hiring Employees and Contractors
This labor law guide for Türkiye has important information for businesses looking to hire employees or contractors in the country. Türkiye is a country in West Asia and Europe.
Turkiye, with its strategic location bridging Europe and Asia, experienced robust economic performance in 2023. The country’s GDP reached approximately $950 billion, continuing its role as a significant player in the global economy. Key sectors driving Turkiye’s growth include manufacturing, textiles, automotive, agriculture, and tourism.
The Turkish Lira (TRY) is the official currency of Turkiye.
Minimum Wage
TRY 20,002.5 per month
Overtime Wage
150% of regular hourly rate
Meal Breaks
Minimum 1-hour
Rest Breaks
15-minutes for every 4 hours worked
Working hours
9 hours per day, 45 hours per week
Salary Payment Cycle
Monthly
Payroll Taxes
Social security, unemployment insurance, and health insurance contributions
Paid Vacation
14 days for employees with 1-5 years of service
Overtime Hours
Over 45 hours per week
Night Shift Hours
150% of regular hourly rate
Holidays
14
No Work Days
Sundays
When hiring employees in Turkiye, businesses are required to navigate specific regulations:
Businesses must register locally to hire workers. The setup cost for a business entity in Türkiye can vary but typically ranges around TRY 3,000 to TRY 8,000. Establishing or incorporating a business entity takes approximately 3 to 7 business days.
Employers need to sign formal employment contracts with their employees. The contract should include job description, salary, working hours, breaks, vacation days, and termination conditions.
The labor laws in Türkiye distinguish between employees and contractors. Contractors operate under a different set of obligations and are generally not provided the same benefits as employees.
For night shifts, a similar premium is applied.
Workers must be a minimum of 15 years old, and stringent laws are in place against child labor.
- Social Security Contributions: 20.5% of the gross salary.
- Unemployment Insurance: 2% of the gross salary.
- Health Insurance: 12.5% of the gross salary.
| Income Level (TRY) | Applicable Tax Rate |
|---|---|
| Up to 70,000 | 15% |
| 70,001 – 250,000 | 20% |
| 250,001 – 880,000 | 27% |
| Over 880,000 | 35% |
Employees in Turkiye are entitled to various leaves:
- Paid Vacation: 14 days annually for employees with 1-5 years of service.
- Maternity Leave: 16 weeks (8 weeks pre-birth and 8 weeks post-birth).
- Paternity Leave: 5 days.
- Sick Leave: As per medical necessity, certified by a doctor.
- Adoption Leave: 16 weeks for adopting parents.
| Holiday Name | Date |
|---|---|
| New Year’s Day | January 1 |
| National Sovereignty and Children’s Day | April 23 |
| Labor and Solidarity Day | May 1 |
| Commemoration of Atatürk, Youth and Sports Day | May 19 |
| Democracy and National Unity Day | July 15 |
| Victory Day | August 30 |
| Republic Day | October 29 /td> |
| Religious Holidays | Varies based on lunar calendar |
In Turkiye, employers must provide the following benefits:
- Social Security: Covers retirement, disability, and death benefits.
- Healthcare: Universal health coverage funded by employer and employee contributions.
- Gratuity and Annual Bonuses: Some industries provide an annual bonus.
- Other Benefits: Various allowances based on the industry and job nature.
Turkiye does not follow At-Will Employment laws. The termination process includes:
- Notice Period: 2-8 weeks depending on the length of service.
- Termination Benefits: Severance pay is mandatory for employees with at least one year of service.
- Legal Challenges: Employees may challenge terminations through labor courts if they believe the dismissal was unfair.
Employers can legally terminate an employee for reasons such as consistent underperformance, misconduct, economic downturns, or business closures, provided the proper notice and severance protocols are followed.