Hire employees in Turkey
What a foreign company needs to know before employing people in Turkey (Türkiye): whether you need a local entity, what an employee costs after the 2026 social security changes, how severance, job security and mandatory mediation work, and why the temporary employment rules shape how you structure a hire. Written for CHROs, CFOs, General Counsel and founders.
Quick answers
The questions leadership teams ask first.
Do I need a local entity in Turkey to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person in Turkey through a compliant local employer, files the social security (SGK) start notice and the monthly withholding and premium return (MUHSGK), and runs payroll. You direct the work.
- Direct local entity. You form a limited company (Ltd. Şti.) or joint stock company (A.Ş.), then register for tax and SGK and open a bank account: several weeks before the first payroll.
- Independent contractor. Lawful only for genuinely independent work. Contractors who work like employees can be reclassified, with severance, premiums and fines owed.
When should I use an EOR instead of registering locally?
Use an EOR for your first engineers, sales or support staff in Turkey, when you want to start in days and do not want to build the monthly filings, the Treasury incentive conditions and the January and July resets yourself. Your own entity earns its keep for a sustained team, a sales office signing Turkish contracts, or regular work permit sponsorship.
What does an employee actually cost beyond salary?
Statutory employer cost is about 21.75% of gross salary for most employers in 2026: social security of 21.75% plus 2% unemployment insurance, less a 2-point Treasury incentive (23.75% without it). The base is capped at TRY 297,270 a month. Accruing for severance adds about 5%, and a customary meal card takes the all-in figure to about 32%.
How difficult is termination in Turkey?
Where job security applies (a workplace of 30 or more workers and 6 months of service), the employer needs a valid reason in writing, and the employee can seek reinstatement after mandatory mediation, with compensation of 4 to 8 months' wages if not reinstated. Notice is 2 to 8 weeks by service. After one year, severance of 30 days' pay per year of service is due, capped at TRY 73,729.87 a year from July 2026.
Can Dryft Global legally employ my team in Turkey?
Yes. Dryft Global employs your team in Turkey through a compliant local employer, with employment terms fully under Labour Law 4857. We issue contracts, file the SGK start notice before day one, run payroll and the MUHSGK return by the 26th, handle KVKK data transfer requirements, and manage notice, severance and the twice-yearly resets.
Hiring routes compared
Speed, set-up burden and liability differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Time to first payroll | Several weeks | Days to 2 weeks | Days |
| Local entity required | Yes, Ltd. Şti. or A.Ş. | No | No |
| SGK, tax and MUHSGK filing | Your registrations | Handled by Dryft Global | Contractor's own |
| Temporary employment rules | Not applicable | Structured compliantly by Dryft | Not applicable |
| Statutory liability | Direct corporate exposure | Assumed by Dryft Global | High if the work is dependent |
| Best fit | Sustained team, local sales | First hires, engineering teams | Short independent projects |
What an employee costs in Turkey
Turkish employer cost is driven by social security and unemployment insurance on gross salary, plus a severance liability that builds with service. The model below is an Istanbul software engineer on TRY 120,000 a month in 2026.
| Component | Employer share | Notes |
|---|---|---|
| Old-age, disability and death insurance | 12% | Raised from 11% in 2026; employee pays 9% |
| General health insurance | 7.5% | Employee pays 5% |
| Short-term insurance | 2.25% | Work accident, sickness and maternity |
| Unemployment insurance | 2% | Employee pays 1% |
| Treasury incentive | minus 2 points | 5 points for manufacturing; needs on-time filing |
| Statutory subtotal | ~21.75% | 23.75% without the incentive; capped at TRY 297,270 a month |
| Severance accrual | ~5% | 30 days' pay per year, capped at TRY 73,729.87 |
| Meal card | ~5.5% | Tax and SGK free up to TRY 300 a day |
| Total employer on-cost | ~32% | About 34% without the incentive |
For an employee on TRY 120,000 a month, budget roughly TRY 1.9 million (about USD 38,300) a year all-in before the EOR fee. The employee's own deductions are 14% social security and 1% unemployment insurance, plus income tax and stamp tax, leaving average net pay of about TRY 81,700 a month. With inflation near 30%, lira figures reset at least each January. Ask us for a cost model with current rates applied.
Payroll and tax
Salaries are paid at least monthly in lira, through a bank for employers with 3 or more employees. The employer files the SGK start notice before the first working day. Each month a combined withholding tax and premium service return (MUHSGK) is filed by the 26th of the following month, when income and stamp tax are also paid, and social security premiums are paid by the end of that month. Contributions apply between a floor of TRY 33,030 and a ceiling of TRY 297,270 a month in 2026.
Income tax withholding
Wage income is taxed at 15%, 20%, 27%, 35% and 40% on cumulative year-to-date income, with the 40% band starting above TRY 5.3 million a year, so withholding rises through the year. Income equal to the minimum wage is exempt for every employee, and stamp tax of 0.759% applies to gross pay above the minimum wage.
Minimum wage 2026
The minimum wage is TRY 33,030 gross a month (TRY 28,075.50 net) from 1 January 2026, a 27% increase. It is set each December by the tripartite Minimum Wage Determination Commission, and some high-inflation years have seen a July increase too; there was none in 2026. Private employers receive minimum wage support of TRY 1,270 a month per employee.
Leave and mandatory benefits
- Annual leave. After one year of service: 14 working days for 1 to 5 years, 20 days for more than 5 years and 26 days from 15 years. Employees under 18 or over 50 get at least 20.
- Public holidays. 15.5 days in 2026, including the Ramadan and Sacrifice Feasts, which move each year.
- Sick pay. SGK pays a temporary incapacity allowance from day 3 of a medical report. The employer has no statutory duty to pay sick wages, though many top up.
- Maternity. 24 weeks since 1 May 2026, 8 before birth and 16 after, paid by SGK.
- Paternity. 10 days of paid leave since 1 May 2026.
- Working time. Up to 45 hours a week. Overtime pays 150%, needs written consent and is capped at 270 hours a year.
- Private pension. Employers with 5 or more staff auto-enrol employees under 45 at 3% of pay, funded by the employee.
- Common extras. A meal card, private health insurance and mid-year pay reviews.
Termination and notice periods
Probation can last up to 2 months, or 4 under a collective agreement, and either party may end the contract during it without notice or severance. After that, notice and severance work as follows.
| Item | Rule |
|---|---|
| Notice, under 6 months' service | 2 weeks |
| Notice, 6 months to 1.5 years | 4 weeks |
| Notice, 1.5 to 3 years | 6 weeks |
| Notice, over 3 years | 8 weeks |
| Severance after 1 year | 30 days' pay per year of service |
| Severance cap, July to December 2026 | TRY 73,729.87 per year of service |
- Job security. At 30 or more workers and 6 months' service, dismissal needs a valid reason related to capacity, conduct or operational requirements, stated in writing.
- Take the defence. For conduct or performance dismissals, the employee's defence must be taken first.
- Mandatory mediation. Reinstatement claims go to mediation within 1 month of the notice; if the dismissal is invalid, the employer reinstates or pays 4 to 8 months' wages plus up to 4 months' idle pay.
- Just cause. Immediate dismissal for serious misconduct, without severance, within 6 working days of learning of it.
- Mutual termination. Should include a meaningful additional payment to hold up if challenged.
Can I use independent contractors?
Only for genuinely independent work. Turkish courts look at subordination: whether the person works personally, under your instructions, for a wage and as part of your organisation. A contractor reclassified as an employee is owed severance, notice, overtime and leave, and the company owes social security premiums with late charges and fines. Lending workers to another company is permitted only through an İŞKUR-licensed private employment agency, mostly for assignments of up to 4 months (8 in total), so the employing structure matters. For anyone who works like an employee, an EOR set up through a compliant local employer is the safe route.
The legal framework in brief
Turkey is a civil law system where the Labour Law sets the core terms and collective agreements and contracts can only improve on them. The instruments you will hear most:
- Labour Law 4857. Contracts, probation, working time, leave, notice, job security, subcontracting and temporary employment.
- Law 1475, Article 14. Severance pay, with its twice-yearly cap.
- Social Insurance Law 5510. Contribution rates, the floor and ceiling and the Treasury incentive, amended by Law 7566 for 2026.
- Income Tax Law 193. Cumulative withholding at 15% to 40% and the minimum wage exemption.
- Law 7578. Maternity leave of 24 weeks and paternity leave of 10 days from May 2026.
- Data protection. KVKK Law 6698, with standard contracts for transfers abroad notified within 5 business days.
- Immigration and right to work. Work permits through e-İzin under Law 6735, with 5 Turkish employees per foreigner, TRY 500,000 capital and salary multiples of 2 to 5 times the minimum wage.
- Authorities. The Ministry of Labour and Social Security, SGK, the Revenue Administration, İŞKUR and the Personal Data Protection Authority.
Where the talent is
About 86 million people, with a median age near 35 and unemployment of 8.4% in September 2026. Istanbul alone has about 15.8 million residents and the deepest pool of software, finance and customer operations talent. Time is UTC+3 all year, which overlaps the full European working day and the Gulf morning. English proficiency is moderate overall and stronger in technology roles.
| Region | Talent and industry concentration |
|---|---|
| Istanbul | Headquarters, software, fintech, e-commerce, gaming and shared services |
| Ankara | Capital; defence, public sector technology and university research |
| Izmir | Third city; software, logistics and manufacturing |
| Bursa | Automotive and industrial engineering |
Turkey Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.
- Step-by-step checklist, from route selection to first payroll
- Contract, probation and overtime clause set-up
- SGK start notice and MUHSGK filing sequence
- Monthly calendar (26th) and the January and July resets
- Contractor and temporary employment risk checklist
- Job security, mediation, notice and severance pack
- Every official Turkish authority with direct links
This guide is general information, not legal, tax or immigration advice. The minimum wage, contribution floor and ceiling, tax brackets and exemptions reset each January, and the severance cap each January and July, so lira figures move quickly. Confirm current figures and the employment structure with a qualified adviser or with Dryft. Last reviewed November 2026.
Ready to hire in Turkey?
Tell us who you want to hire and where they sit. You will get a cost model and a compliant route within a day, from a person who has done this before.