Payroll and Benefits Guide - Turkey

Turkey
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Currency

Turkish Lira (TRY)
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Capital

Ankara
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Employer Taxes

22.50%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Turkey’s capital city is Ankara while Istanbul is the largest city.

The city of Troy, famous for the legendary Trojan War described in Homer’s Iliad, is located in western Turkey.

The city of Bodrum is known for the Mausoleum of Halicarnassus, one of the Seven Wonders of the Ancient World.

Turkey is home to the ancient city of Ephesus.

Mount Ararat in eastern Turkey is believed to be the resting place of Noah’s Ark.

The Dardanelles Strait, connects the Sea of Marmara to the Aegean Sea.

Turkey

Contributions

Employee Payroll Tax

Contribution TypeRate
Pension & Disability*9.00%
General Health Insurance*5.00%
Unemployment Insurance*1.00%

Employer Payroll Tax

Contribution TypeRate
Short-Term Insurance Branch Premium*2%
Pension & Disability*11%
General Health Insurance*7.5%
Unemployment Insurance*2%

Payroll

Payroll Cycle

The payroll frequency is monthly.

13th Salary

There are no legal requirements for 13th-month payments.

Work Hours and Week

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.

Turkey

Leave

Paid Time Off

Paid leave in Turkey is set in the employment contract as a minimum of 14 days of paid leave a year (following completion of 1-year service) in addition to public holidays.

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.

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).

Maternity Leave

Working mothers are entitled to 16 (extended to 18 in cases of multiple/complicated pregnancies) weeks 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.

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.

Probation Period

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.

Immigration

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

VAT

The standard rate of VAT in Turkey is 18%.