Turkey Employment Guide
Turkey Employment Guide
Turkey is at the Eurasian crossroads, bordering Greece, Bulgaria (west), Georgia, Armenia, Iran (east), the Mediterranean (south) and the Black Sea (north). It has ~85 million people; Turkish is official, Ankara is the capital, and major economic hubs include Istanbul and Izmir. Its diversified economy values industry, services and agriculture, with textiles, auto manufacturing, electronics, tourism and export-oriented manufacturing having significant influence. Labor laws (per Turkish Labour Law) protect wages, hours, leave and social security. Standard workweek: 45 hours (overtime needs extra pay or time off). Salaries are usually monthly (avg. TRY 12,000 pre-tax). Laws cover paid leave and protect contract/temp workers, balancing interests for a fair, flexible labor market.
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Currency
Turkish Lira (TRY)
Capital
Ankara
Official language
Turkish
Salary Cycle
Monthly
Our Employment Guide in Turkey
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Turkey's 2024 Minimum Wage Requirements
Effective January 1, 2024, Turkey's gross monthly minimum wage stands at 20,002.50 Turkish Lira. This baseline figure is crucial for international employers to budget accurately when expanding into the Turkish market.
Understanding Personal Income Tax in Turkey
Turkey employs a progressive income tax system, with rates escalating from 15% to 40% based on annual earnings. This structure ensures a fair distribution of the tax burden according to an individual's capacity to pay.
| Annual Income Bracket (TRY) | Applicable Tax Rate |
|---|---|
| 0 - 110,000 | 15% |
| 110,001 - 230,000 | 20% |
| 230,001 - 870,000 | 27% |
| 870,001 - 3,000,000 | 35% |
| Over 3,000,000 | 40% |
Employer Social Security Contributions and Costs
For businesses hiring in Turkey, the total employer-side social security contribution is typically calculated at 17.5% of the employee's gross salary. This is a critical component of the total employment cost.
- Universal Health Insurance (Genel Sağlık Sigortası): 7.5%
- Long-Term Insurance Branch (Malullük, Yaşlılık, Ölüm): 11%
- Short-Term Insurance Branch (İş kazası, Meslek hastalığı, Hastalık, Analık): 2%
- Unemployment Insurance (İşsizlik Sigortası): 2%
- SSI Premium Incentive (for timely payments): -5%
It's important to note that these calculations use the statutory minimum wage of 20,002.50 TRY and a maximum assessable wage ceiling of 150,018.75 TRY. The SSI incentive acts as a discount for employers who comply with social security payment deadlines.
Standard Working Hours and Overtime Regulations
The Turkish Labor Law defines a standard workday as 9 hours, which includes a mandatory 1-hour unpaid break, over a 5-day workweek. A typical full-time schedule is Monday through Friday, amounting to a standard 37.5-hour workweek or 7.5 hours per day. Overtime compensation is mandatory for hours worked beyond this standard, typically paid at a higher rate.
For instance, a technology company like SailGlobal, when establishing a team in Istanbul, must factor in these standard hours to ensure compliance and fair compensation practices. Navigating these regulations is essential for successful and sustainable operations in Turkey.
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