What is Employer of Record (EOR) in Turkey? An Employer of Record (EOR) in Turkey is a licensed local company that legally employs workers on behalf of a foreign business. The EOR registers employees with the Social Security Institution (SGK), withholds income tax, processes monthly payroll, and ensures full compliance with Turkish Labor Law — while the foreign client directs the employee’s day-to-day work. Foreign companies can hire in Turkey within 5–10 business days, with no need to establish a local entity.
Özbek CPA has provided Employer of Record services in Turkey since 2002, supporting clients from over 50 countries including Germany, the USA, the UK, the Netherlands, and the UAE. We serve as the legal employer on record while your team member works exclusively for you.
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Key Numbers: Hiring Through an EOR in Turkey (2026)
Important 2026 update (Law No. 7566, effective 1 January 2026): The employer SGK premium rate increased from 20.75% to 21.75%. The Treasury-supported discount for non-manufacturing employers was reduced from 4 points to 2 points. The SGK monthly earnings ceiling was raised from 195,041.40 TRY to 297,270.00 TRY. The gross minimum wage increased to 33,030.00 TRY.
- Employer SGK 21.75%
- Employee SGK 14%
- Unemployment (employer) 2%
- Unemployment (employee) 1%
- Total employer add-on 23.75%
- Gross min. wage 33,030.00 TRY
- Net min. wage 28,075.50 TRY
- SGK monthly ceiling 297,270.00 TRY
- Stamp duty on salary 0.759%
- Time to hire via EOR 5–10 days
- No local entity needed
2026 SGK Contribution Rates — Full Breakdown
| Contribution | Employee | Employer (standard) | Employer (2-pt discount applied) |
|---|---|---|---|
| Social Security Insurance premium (invalidity, old age, health, short-term) | 14% | 21.75% | 19.75% |
| Unemployment Insurance | 1% | 2% | 2% |
| Total | 15% | 23.75% | 21.75% |
Who qualifies for the 2-point discount? Private sector employers with no outstanding SGK debts, timely and complete premium declarations, and no unregistered workers. Manufacturing companies qualify for a higher 5-point discount (effective total: 18.75%) through end of 2026. Özbek CPA assesses eligibility at onboarding and applies the correct rate from day one.
Total Employer Cost Through an EOR in Turkey (2026)
Sample A: Employee with 50,000 TRY Gross Monthly Salary
| Item | Rate | Amount (TRY) |
|---|---|---|
| Gross salary | — | 50,000.00 |
| Employer Social Security Insurance | 21.75% | 10,875.00 |
| Employer unemployment insurance | 2% | 1,000.00 |
| Total employer cost (standard rate) | 23.75% | 61,875.00 |
| Total employer cost (2-point discount applied) | 21.75% | 60,875.00 |
What the Employee Takes Home from That 50,000 TRY (January 2026)
| Item | Rate / Basis | Amount (TRY) |
|---|---|---|
| Gross salary | — | 50,000.00 |
| Employee Social Security Insurance | 14% | −7,000.00 |
| Employee unemployment insurance | 1% | −500.00 |
| Income tax base | 50,000 − 7,500 | 42,500.00 |
| Calculated income tax (15% bracket) | 15% × 42,500 | −6,375.00 |
| Minimum wage income tax exemption (Jan–Jun 2026) | — | +4,211.33 |
| Income tax payable | — | −2,163.67 |
| Stamp tax payable (after minimum wage exemption) | 0.759% | −128.80 |
| Net salary (take-home) | — | 40,207.53 |
Income tax is cumulative — the bracket rises throughout the year as year-to-date income grows. The 15% bracket applies early in the year; 20%, 27%, 35%, or 40% apply as cumulative income increases.
Sample B: Minimum Wage Employee — Total Employer Cost (2026)
| Item | Amount (TRY) |
|---|---|
| Gross minimum wage | 33,030.00 |
| Employer Social Security Insurance (21.75%) | 7,184.03 |
| Employer unemployment insurance (2%) | 660.60 |
| Total employer cost (no incentives) | 40,874.63 |
| Total employer cost (2-point discount applied) | 40,214.03 |
| Total employer cost (5-point discount — manufacturing sector) | 39,223.13 |
The 2026 minimum wage support of 1,270 TRY/month (deducted from the employer’s Social Security debt for eligible employers) is not included in the figures above.
2026 Income Tax Brackets for Salary Income
| Annual Cumulative Tax Base (TRY) | Rate |
|---|---|
| 0 – 190,000 | 15% |
| 190,001 – 400,000 | 20% |
| 400,001 – 1,500,000 | 27% |
| 1,500,001 – 5,300,000 | 35% |
| 5,300,001 and above | 40% |
Brackets apply to salary income only. The minimum wage portion of all salaries is fully exempt from income tax and stamp tax in 2026.
SGK Ceiling and Income Tax: What This Means in Practice
SGK ceiling (297,270.00 TRY/month in 2026): Social Security contributions — both employer and employee shares — are only calculated on the portion of gross salary up to this monthly ceiling. Any salary above 297,270.00 TRY is not subject to Social Security contributions. For high-earning executives or expatriates, the effective Social Security burden as a percentage of total compensation therefore decreases once salary exceeds the ceiling. For example, an employee earning 400,000 TRY gross per month pays employee Social Security only on 297,270.00 TRY, not on the full 400,000 TRY. The same cap applies to the employer’s 21.75% contribution. Note that this ceiling was raised substantially in 2026 — from 195,041.40 TRY to 297,270.00 TRY — as it is now set at 9 times the gross minimum wage instead of the previous 7.5 times. For companies employing senior staff, this change materially increases the annual Social Security cost per high-salary employee compared to 2025.
Income tax — cumulative system: Turkey uses a cumulative income tax calculation, which is frequently misunderstood by foreign clients. The tax bracket is not determined by the employee’s monthly salary in isolation — it is determined by the employee’s total taxable income since 1 January of the current year. This means an employee who earns 50,000 TRY per month will start the year in the 15% bracket in January, but by October their cumulative income will have crossed the 400,001 TRY threshold, pushing them into the 27% bracket for the remainder of the year. As a result, net take-home pay decreases noticeably in the second half of the year for mid-to-high earners — even if their gross salary stays constant. Foreign companies budgeting annual payroll costs must account for this effect. Özbek CPA provides annual payroll cost projections that reflect the cumulative system, so you can budget accurately from the start.
Employment Contract Types in Turkey: What EOR Clients Need to Know
Turkish Labor Law No. 4857 recognises two primary contract types, and the distinction has significant cost implications for EOR clients.
| Indefinite-Term Contract | Fixed-Term Contract | |
|---|---|---|
| Duration | No end date — ongoing employment | Specific end date or completion of a defined project |
| Severance entitlement | Yes — accrues from year one of service | No — unless repeatedly renewed without objective justification |
| Notice period required | Yes (see notice periods below) | No — contract ends on the agreed date |
| Best for | Ongoing roles, permanent hires | Project-based or seasonal work with a defined end |
Important: If a fixed-term contract is renewed repeatedly without a legitimate objective reason, Turkish courts may reclassify it as an indefinite-term contract — triggering full severance entitlement retroactively. Özbek CPA advises on the correct contract structure at onboarding to avoid this risk.
Statutory Annual Leave in Turkey
All employees in Turkey are entitled to paid annual leave after completing one year of service. The minimum entitlement increases with length of service as follows:
| Length of Service | Minimum Paid Annual Leave |
|---|---|
| 1 – 5 years | 14 working days |
| 5 – 15 years | 20 working days |
| 15 years and above | 26 working days |
| Employees aged 18 and under, or 50 and above | Minimum 20 working days (regardless of service length) |
Annual leave entitlement cannot be reduced by contract, and unused leave must be compensated upon termination. Public holidays (currently 15.5 days per year in Turkey) are in addition to annual leave and are paid separately.
Notice Periods and Severance Pay in Turkey
Statutory notice periods
When an indefinite-term employment contract is terminated by either party, the following minimum notice periods apply under Turkish Labor Law:
| Length of Service | Minimum Notice Period |
|---|---|
| Less than 6 months | 2 weeks |
| 6 months – 1.5 years | 4 weeks |
| 1.5 years – 3 years | 6 weeks |
| More than 3 years | 8 weeks |
Either party may pay in lieu of notice (garden leave payment) instead of serving the notice period. The employer may also terminate immediately with payment of a notice indemnity equal to the gross salary for the applicable notice period.
Severance pay
An employee dismissed without valid cause, or who resigns for specific legally recognised reasons (such as military service, marriage for female employees, or retirement), is entitled to severance pay of one month’s gross salary per year of service. Severance pay is only due for employment of at least one full year. Employees dismissed for gross misconduct (as defined under Article 25/II of Labor Law No. 4857) are not entitled to severance pay.
Severance pay ceiling (2026): The legal ceiling for severance pay is updated periodically in line with civil servant salary adjustments. As an EOR client, Özbek CPA calculates and provisions severance accrual monthly, so you have a clear picture of your ongoing liability at all times.
Wrongful Termination Risk
Employees with more than 30 days of service at a workplace with 30 or more employees are protected against unfair dismissal under Article 18 of Labor Law No. 4857. If a court rules that a termination lacked valid cause, the employer (i.e. the EOR) may be ordered to reinstate the employee or pay a compensation of 4 to 8 months’ gross salary in addition to up to 4 months of lost wages. Özbek CPA manages all termination procedures to minimise this risk and advises on valid grounds before any dismissal is executed.
Statutory and Common Employee Benefits in Turkey
Legally required benefits
Beyond base salary, the following benefits are either legally mandatory or widely expected in the Turkish market:
| Benefit | Detail |
|---|---|
| Annual leave pay | Paid at the employee’s regular daily gross wage rate |
| Public holiday pay | 15.5 paid public holidays per year; work on these days earns double pay |
| Meal allowance (cash) | Up to 170 TRY per working day is exempt from income tax and Social Security contributions (2026) |
| Transportation allowance (cash) | Exempt from Social Security contributions if paid in kind (employer-organised transport); cash payments are included in the Social Security base |
| Overtime pay | Time worked beyond 45 hours per week is paid at 150% of the hourly rate; overtime on rest days at 200% |
| Severance provision | One month’s gross salary per year of service (see above) |
Private health insurance
Employer-paid private health insurance premiums are partially exempt from both income tax and Social Security contributions. Under current rules, the portion of premiums not exceeding 30% of the employee’s monthly gross minimum wage (i.e. up to 9,909.00 TRY per month in 2026) is excluded from the Social Security contribution base. For income tax purposes, employer-paid health insurance premiums are deductible up to 15% of the employee’s monthly gross salary, and in aggregate up to the level of the annual gross minimum wage. Many foreign companies use private health insurance as a key benefit to attract talent — Özbek CPA can structure this correctly to maximise the tax advantage.
Automatic enrolment
All employees under the age of 45 employed in Turkey must be automatically enrolled in the state-run private pension scheme upon starting work. There is no mandatory employer contribution — the employee contributes 3% of gross salary, and the state provides a 25% matching contribution on the employee amount. Employees may opt out within 60 days of enrolment. As the EOR, Özbek CPA handles all enrolment, reporting, and opt-out administration on your behalf.
Hiring Foreign Nationals Through an EOR in Turkey
Non-Turkish nationals can be employed through an EOR in Turkey, but additional requirements apply.
Work permit requirement
A valid work permit issued by the Ministry of Labour and Social Security is required before a foreign national can legally start work in Turkey. Applications are submitted online via the e-Government portal. Processing typically takes 30–90 days. The EOR (Özbek CPA) acts as the sponsoring employer for the work permit application. Key conditions include: the employer must have a minimum of five Turkish employees per foreign national (some exceptions apply), and the foreign employee’s gross salary must be at or above the relevant minimum threshold for the role.
Social Security for expatriates — bilateral agreements
Turkey has bilateral social security agreements with a number of countries, including Germany, the United Kingdom, the United States, France, the Netherlands, Belgium, and others. Under these agreements, an expatriate who remains covered by the social security system of their home country may be exempt from Turkish Social Security contributions for a defined period — typically up to 24 or 36 months depending on the treaty. To claim the exemption, the employee must provide a certificate of coverage (known as an A1 certificate within the EU/EEA, or the equivalent document under the relevant bilateral agreement) to the Turkish Social Security Institution. Özbek CPA handles the exemption application and documentation as part of the EOR onboarding for expatriate hires, and can advise on the applicable treaty terms for each nationality.
Practical implication: For a German or British expatriate on assignment in Turkey for up to 24 months, the employer may not owe any Turkish Social Security contributions at all — significantly reducing the total cost of employment compared to a locally-hired employee at the same salary. This is one of the most frequently overlooked cost optimisations for short-term international assignments in Turkey.
Terminating an Employee Through an EOR in Turkey
One of the most common concerns for EOR clients is understanding what happens — and what it costs — when employment needs to end. Here is a practical overview.
Valid grounds for termination
Under Turkish Labor Law, an employer may terminate an indefinite-term employment contract for the following reasons without triggering wrongful dismissal liability:
- Valid cause (Article 18): A genuine operational, economic, or technological reason affecting the employee’s role. The employer must prove the reason is objective and not arbitrary.
- Just cause (Article 25/I): Health-related grounds, such as prolonged or repeated absence beyond legally specified limits.
- Just cause (Article 25/II): Gross misconduct — including dishonesty, violence at the workplace, disclosure of trade secrets, or unauthorised absence for two consecutive working days. Dismissal for gross misconduct may be immediate and forfeits the employee’s right to severance pay.
Termination checklist
- Confirm grounds — Özbek CPA reviews the proposed termination reason before any action is taken to assess legal risk and recommend the correct procedure.
- Issue written notice — All terminations must be in writing. The notice must state the reason clearly. For dismissals under Article 18, the reason must be specific and provable.
- Serve or pay in lieu of notice — The applicable notice period (2–8 weeks depending on service length) must either be served or compensated as a lump-sum payment.
- Calculate final payments — Final payslip includes outstanding salary, accrued but unused annual leave (paid at daily gross rate), notice indemnity if applicable, and severance pay if the termination qualifies.
- Social Security deregistration — The employee must be deregistered from Social Security on the last day of employment. Özbek CPA submits this filing on the same day.
- Issue termination documents — The employee is entitled to a termination letter, a certificate of employment, and a reference of Social Security service record.
Practical note on timing: Wrongful dismissal claims in Turkey must be filed within one month of termination. If a claim is upheld, the compensation is 4–8 months’ gross salary in addition to up to 4 months of lost wages. Özbek CPA recommends never proceeding with a termination without a prior legal review of the grounds and documentation.
What Does Özbek CPA Handle as Your EOR in Turkey?
- Employment contract drafting — Compliant with Turkish Labor Law No. 4857, delivered in English and Turkish
- Social Security registration — Completed at least one business day before the employee’s start date, as required by law
- Monthly payroll processing — Gross-to-net calculation at current 2026 rates; net salary paid to the employee’s Turkish bank account in TRY
- Income tax withholding and remittance — Monthly withholding tax declaration filed and paid by the 26th of the following month
- Social Security premium declaration — Monthly premium declaration submitted by the 23rd of the following month
- Payslip issuance — Turkish-compliant payslip provided each month, with English summary
- Annual income tax reconciliation — Year-end cumulative tax base adjustments
- Annual leave tracking — Accrual and usage tracked monthly; leave liability reported in English
- Severance accrual provisioning — Monthly severance liability calculated and reported
- Automatic pension enrolment — Enrolment, opt-out administration, and monthly reporting handled in full
- Work permit support — Application sponsorship and documentation for non-Turkish nationals
- Social Security bilateral agreement exemptions — Certificate of coverage processing for eligible expatriates
- Termination management — Legal review, notice calculation, final payment, and Social Security deregistration
How Does the EOR Process Work at Özbek CPA?
- Initial consultation — We review your hiring needs: role, salary, contract type (indefinite or fixed-term), and any work permit requirements for non-Turkish nationals.
- Employment contract preparation — Turkish Labor Law-compliant contract drafted in English, covering salary, benefits, working hours, leave entitlement, and notice periods.
- Social Security and tax registration — Employee registered with the Social Security Institution and the Tax Office before day one.
- First payroll run — Gross-to-net calculated using current 2026 rates; net salary paid to the employee’s Turkish bank account.
- Monthly declarations — Income tax withholding declaration (by the 26th) and Social Security premium declaration (by the 23rd) filed and paid each month on your behalf.
- Ongoing support — Salary changes, bonuses, benefit adjustments, terminations, and monthly English-language payslips and reports throughout the employment.
EOR vs. Company Formation in Turkey: Which Is Right for You?
| EOR (Employer of Record) | Own Legal Entity (e.g. LLC) | |
|---|---|---|
| Time to hire | 5–10 business days | 30–60 days (company setup required first) |
| Upfront investment | None — monthly management fee only | Min. 50,000 TRY capital + notary and registration costs |
| Compliance burden | Fully managed by EOR | Monthly VAT, corporate tax, Social Security, and accounting filings required |
| Best for | 1–10 employees, market testing, short-term projects | Long-term operations, 10+ employees, local commercial contracts |
| Legal employer | EOR (Özbek CPA) | Your own Turkish company |
Not sure which structure fits your situation? Contact us — we provide an honest recommendation based on your headcount, timeline, and long-term plans in Turkey.
Is EOR Legal in Turkey?
Yes. Employer of Record arrangements are legally valid in Turkey under Turkish Labor Law No. 4857. The EOR is the registered legal employer and bears full responsibility for Social Security contributions, income tax withholding, and labor law compliance. The foreign client company directs the employee’s work but holds no direct employment relationship under Turkish law. Özbek CPA is a licensed Certified Public Accountant firm operating since 2002, fully authorised to act as employer of record and provide payroll services in Turkey.
Why Choose Özbek CPA as Your EOR in Turkey?
- Over 20 years of experience — Operating since 2002, clients in 50+ countries
- Bilingual team — All services delivered in English and Turkish
- Annual rate tracking — We update all calculations for every regulatory change, including the 2026 Law No. 7566 amendments
- Transparent pricing — Fixed monthly management fee per employee; statutory contributions passed through at cost with no markup
- Full termination support — Legal review, final payment calculation, and Social Security deregistration handled end-to-end
- Expatriate expertise — Social Security bilateral agreement exemptions and work permit sponsorship for international hires
- Integrated services — EOR, accounting, tax advisory, work permits, and company formation under one roof
- IR Global member — Part of a global professional network covering 155+ jurisdictions
Frequently Asked Questions: EOR in Turkey
How long does it take to hire an employee through an EOR in Turkey?
Through an EOR in Turkey, employment can begin within 5–10 business days. Social Security registration must be completed at least one business day before the employee starts work — this is a strict legal requirement under Turkish law.
What is the total employer cost per employee in Turkey in 2026?
As of 1 January 2026, total employer cost is gross salary plus 23.75% (21.75% Social Security + 2% unemployment insurance). For a 50,000 TRY gross salary, the employer pays 61,875 TRY per month before the EOR management fee. Employers qualifying for the 2-point discount pay 60,875 TRY. The employer Social Security rate increased from 20.75% to 21.75% on 1 January 2026 under Law No. 7566.
What changed in Turkey’s Social Security rates for 2026?
Three key changes under Law No. 7566 (effective 1 January 2026): (1) The employer Social Security premium rose from 20.75% to 21.75%. (2) The Treasury-supported discount for non-manufacturing employers was cut from 4 points to 2 points — manufacturing retains the 5-point discount through end of 2026. (3) The monthly Social Security earnings ceiling increased from 195,041.40 TRY to 297,270.00 TRY, now set at 9 times the minimum wage.
What is the minimum wage in Turkey in 2026?
The gross minimum wage in Turkey as of 1 January 2026 is 33,030.00 TRY per month. Net take-home after Social Security deductions is 28,075.50 TRY per month. The minimum wage portion is fully exempt from income tax and stamp tax in 2026.
What are the monthly payroll filing deadlines in Turkey?
Two key monthly deadlines: (1) Social Security monthly premium declaration — due by the 23rd of the following month. (2) Income tax withholding declaration — due by the 26th of the following month. Özbek CPA handles both on your behalf.
Can a foreign national be hired through an EOR in Turkey?
Yes, but non-Turkish nationals need a work permit issued by the Ministry of Labour and Social Security before starting work. Özbek CPA assists with the permit application as part of EOR onboarding. Processing typically takes 30–90 days depending on nationality and role.
Do expatriates have to pay Turkish Social Security contributions?
Not necessarily. Turkey has bilateral social security agreements with many countries including Germany, the United Kingdom, the United States, and France. Expatriates who remain covered by their home country’s social security system can apply for an exemption from Turkish Social Security contributions, typically for up to 24–36 months. Özbek CPA handles the exemption documentation and filing with the Social Security Institution.
What is the severance pay rule in Turkey?
Employees with at least one year of service are entitled to one month’s gross salary per year of service upon qualifying termination. A legal ceiling applies, updated periodically in line with civil servant pay adjustments. Employees dismissed for gross misconduct are not entitled to severance pay. As the EOR, Özbek CPA manages all termination procedures and calculates final payments.
How much annual leave are employees entitled to in Turkey?
Paid annual leave entitlement is 14 working days for employees with 1–5 years of service, 20 working days for 5–15 years, and 26 working days for 15 years and above. Employees aged 18 and under or 50 and above are entitled to a minimum of 20 working days regardless of service length. Annual leave cannot be reduced by contract.
Does EOR in Turkey require the employee to have a Turkish bank account?
Yes. Turkish Labor Law requires that salary be paid directly to the employee’s Turkish bank account. The EOR pays net salary in TRY; the foreign client reimburses the EOR for gross salary, employer Social Security contributions, unemployment insurance, and the monthly management fee via international wire transfer.
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