Hiring Employees in Turkey in 2025: What You Need to Know

Turkey, uniquely straddling Europe and Asia, has become a strategic hub for global talent acquisition. Its dynamic economy, diverse workforce, and rapidly growing technology sector have put Turkey firmly on the talent hiring map. 

The country boasts a young, educated population, a multilingual workforce, and an increasingly remote-friendly infrastructure, making it a compelling destination for companies seeking to expand their international teams.

For US companies, hiring in Turkey offers multiple advantages. The cost of labor is significantly lower than in the US, while the talent pool is deep and skilled, particularly in tech, finance, and engineering. 

With Turkey’s time zone overlapping both Europe and Asia, US firms benefit from better global coverage, faster project cycles, and round-the-clock support. Turkey’s growing startup ecosystem and government backing for digitalization make it an ideal location for scaling distributed teams.

How to Hire Employees in Turkey

Assess Your Hiring Needs

• Full-time vs. project-based support: Decide whether you need permanent employees or project-based contractors. Full-time employees are suited for long-term growth, while contractors offer flexibility for specific projects.

• Local compliance requirements: Turkish labor laws are comprehensive and strictly enforced, so assess if you can handle compliance internally or need external support.

• Onboarding speed vs. long-term control: For rapid ramp-up, use solutions that minimize setup time. For lasting presence, direct employment via a local entity offers more control.

Hiring Options

• Set Up a Legal Entity: Establish a subsidiary or branch for direct employment. This suits companies with long-term ambitions and local presence goals but requires significant investment and administration.

• Partner with an Employer of Record (EOR): An EOR acts as the legal employer, handling payroll, taxes, and compliance. This is ideal for speed and flexibility, especially without a physical office or local HR. EORs assume employer liabilities and ensure compliance with Turkish laws. See why Turkey is among the top countries where EOR services are especially beneficial for foreign companies.

EOR vs. Legal Entity Comparison

Aspect	Employer of Record (EOR)	Legal Entity
Pros	Quick onboarding, no upfront capital, handles compliance & payroll	Full control, long-term growth, direct relationships
Cons	Service fees, less direct control	Complex setup, high initial capital
Cost & Implementation	Lower upfront; ongoing fees	High initial; operational expenses
Compliance/Payroll	Managed by EOR; ensures local compliance	Company manages all compliance and payroll

Understanding Worker Classification in Turkey

Employees vs. Contractors

Feature	Employee	Contractor
Control	Employer dictates work and schedules	Contractor controls work
Commitment	Long-term, ongoing	Short-term, project-based
Benefits	Entitled to legal benefits	Not entitled
Cost	Higher (salary + benefits)	Lower (service fees only)
Compliance	Employer’s responsibility	Contractor’s responsibility

• Legal and tax implications: Misclassification is illegal and can result in penalties. Ensure contracts, arrangements, and management match the worker’s status.

• Hiring contractors: Contractors can be used for specific projects, but ensure the relationship doesn’t resemble employment.

Hiring Costs and Payroll in Turkey

Hiring Costs Overview

• Net minimum monthly wage (2025): 22,104 TRY (~$630 USD)
• Employer social security: 20.5% of salary
• Unemployment insurance: 2% of salary
• Severance pay: 1 month per year worked (in certain cases)
• Optional private health insurance

Payroll Setup Steps

• Register your entity or EOR with the Social Security Institution (SGK)
• Enroll employees for social security and unemployment insurance
• Set up monthly payroll for salary, taxes, and deductions
• Maintain payroll records and submit reports as required

Income Tax Rates

• Progressive income tax rates: 15%–40% (2025)
• Employers must withhold and remit income tax monthly

Payment Methods

• Direct bank transfer (most common)
• EOR payroll platforms
• International wire transfers (for contractors)

Using Global Payroll Services

• Global providers manage multi-country payroll, tax, and compliance
• Ensure timely, compliant payments
• For more, see how EOR payroll solutions improve compliance and accuracy

Compliance Risks When Hiring Employees in Turkey

Key Risks

• Incorrect payroll contributions can lead to fines/legal issues
• Permanent establishment risk: Hiring without a local entity may trigger unexpected tax liabilities
• Statutory benefits: Failure to provide social security, leave, or severance can result in lawsuits and penalties
• Misclassification risks: Misclassifying contractors as employees is a legal violation. See how EOR solutions reduce misclassification and payroll fraud risks
• Regional law variances: Most laws are national, but local agreements or industry regulations may add requirements

Onboarding New Employees in Turkey

Before Their First Day

• Prepare a compliant employment contract in Turkish
• Register employee with SGK
• Arrange mandatory health and safety training

On Day 1

• Provide orientation and introduce company policies
• Issue equipment and grant IT access
• Collect signed contracts and forms

During First 90 Days

• Monitor adaptation and performance
• Continue training and feedback
• Ensure statutory benefits and social security are active

Offer Letter Essentials

• Job title and description
• Salary and benefits
• Working hours and location
• Start date and probation
• Termination terms

NDAs and Confidentiality

• Include non-disclosure and confidentiality clauses in the contract

Background Checks

• Allowed with consent; must comply with Turkish data privacy laws

Managing Remote Employees in Turkey

Computer and App Access

• Provide secure, preconfigured devices
• Set up access to collaboration tools and VPNs

Intellectual Property Protections

• Include clear IP ownership clauses in contracts
• Inform employees of obligations regarding inventions, trademarks, and data
• Learn about types of IP rights in Turkey

Complying with Turkey Labor Laws

Working Conditions

• Standard workweek: 45 hours
• Overtime: 150% of regular wage
• Paid annual leave: 14–26 days (based on tenure)
• Mandatory rest breaks and health/safety

No At-Will Employment

• Terminations require just cause and notice

Trade Unions and Collective Bargaining

• Strong union presence in many sectors
• Collective agreements can impact pay, benefits, and working conditions

Terminating Employees in Turkey

Acceptable Termination Reasons

• Valid: redundancy, poor performance (with documentation), misconduct, business closure
• Discriminatory/arbitrary dismissals are prohibited

Notice Periods and Legal Protections

• Notice: 2–8 weeks, depending on tenure
• Severance: 1 month per year of service (in certain cases)
• Terminated employees may challenge dismissals in labor courts

Why U.S. Companies Should Consider Hiring in Turkey

Access to Skilled Talent

• In-demand: IT, engineering, finance, customer support, BPO
• High education levels, strong STEM/language skills
• Multilingual workforce (English, German, French, Arabic)

Cost Efficiency

• Wages and benefits are significantly lower than in the U.S.
• Reduced overhead via remote/EOR models

Time Zone Overlap

• GMT+3 enables collaboration with European and Asian teams
• Ideal for distributed teams and 24/7 support

Growing Remote-Friendly Infrastructure

• High internet penetration and digital infrastructure
• Expanding coworking and remote work hubs
• Vibrant startup ecosystem and government support

Turkey’s Talent Potential with the Right Hiring Strategy

Hiring in Turkey offers a compelling mix of skilled talent, cost efficiency, and strategic location. While regulations are complex, choosing the right hiring model, legal entity or Employer of Record, enables US companies to tap into Turkey’s workforce compliantly and efficiently. With robust labor protections, a strong union culture, and a rapidly evolving tech scene, Turkey stands out as a top global team expansion destination.