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Turkey has ~22% employer SGK burden, mandatory kıdem tazminatı severance (30 days/year), a high-inflation salary environment, and monthly muhtasar declarations due by the 26th. Rippling EOR handles all GİB, SGK, and kıdem tazminatı compliance.
Turkey is a large upper-middle-income economy bridging Europe and Asia, with a rapidly growing technology sector in Istanbul and Ankara. Turkey has a large, young, English-proficient tech workforce. TRY depreciation has made Turkish talent highly cost-competitive for USD/EUR-paying employers. EOR is popular for technology, financial services, and professional services companies hiring in Turkey. Kıdem tazminatı (mandatory severance) accrual from day one is the key financial planning item for all Turkish hires.
Setting up a Turkish entity requires Trade Registry registration, SGK employer registration, and muhtasar declaration system access. EOR is recommended for 1–10 employees or where kıdem tazminatı accrual management and inflation-driven salary review complexity are barriers. The SGK ceiling updates twice yearly, and minimum wage updates (also twice yearly during high inflation) require active payroll management that EOR handles automatically.
SGK employee: 14% on gross up to SGK ceiling. Unemployment: 1% on gross. Income tax (stopaj): withheld monthly at progressive 15–40% rates via muhtasar declaration. Stamp duty: 0.759% of gross salary deducted from employee.
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SGK employer: 20.5% on gross up to SGK ceiling. Unemployment: 2% on gross. Total employer social on-cost approximately 22–25% of gross. Kıdem tazminatı accrual: 30 days' gross salary per year of service (ceiling applies) — a significant additional accruing liability that must be budgeted from day one.
Progressive 5-bracket: 15% (up to TRY 110,000); 20% (TRY 110,001–230,000); 27% (TRY 230,001–580,000); 35% (TRY 580,001–1,900,000); 40% (above TRY 1,900,000). Plus 0.759% stamp duty. Monthly stopaj via muhtasar by 26th.
Annual leave: 14 days (1–5 years); 20 days (5–15 years); 26 days (15+ years). Sick leave: employer pays up to 6 days; SGK pays from day 3 with medical certificate. Maternity: 16 weeks at 100% salary paid by SGK. Paternity: 5 days. Public holidays: 14.5 days/year.
Notice (İhbar): 2–8 weeks by tenure. Kıdem: 30 days/year (ceiling applies); payable on dismissal without just cause or eligible resignation. Unfair dismissal (5+ employees, 6+ months): reinstatement or 4–8 months additional compensation. Rippling EOR calculates full termination package.
Non-Turkish nationals require a work permit. Processing: 4–8 weeks. Rippling EOR supports work permit applications through its Turkish entity.
Statutory: SGK social insurance (employer 20.5% + 2% unemployment), 14–26 days annual leave (by tenure), 16 weeks maternity paid by SGK, kıdem tazminatı severance accrual (30 days/year). Market standard: private medical insurance (supplementary), meal card (Sodexo), transport allowance, performance bonus. Istanbul, Ankara, Izmir are primary markets.
Rippling EOR Turkey operates through a local Turkish entity. Key Turkey-specific handling: SGK monthly contributions (20.5% + 2% unemployment), muhtasar ve prim hizmet beyannamesi monthly declaration, kıdem tazminatı accrual tracking and termination payout, stamp duty (0.759%) withholding, minimum wage and SGK ceiling monitoring.
Kıdem tazminatı (severance pay) accrues from day one: 30 days' gross salary per year of service, subject to a ceiling (TRY 35,058.58 per year of service in 2024, updated twice annually). Payable on dismissal without just cause, resignation for eligible reasons, or retirement. Rippling EOR tracks kıdem tazminatı accrual for each employee and manages payout on eligible termination.
Turkey's high inflation means TRY salaries must be reviewed every 6–12 months to maintain purchasing power. The minimum wage is updated January and July. Rippling EOR tracks minimum wage updates and notifies clients when employee salaries fall below the current minimum.
The muhtasar ve prim hizmet beyannamesi is Turkey's combined monthly payroll declaration covering income tax (stopaj), SGK contributions, and unemployment insurance. Due by the 26th of the following month. Rippling EOR submits the muhtasar declaration automatically each month.
Notice pay (İhbar tazminatı): 2 weeks (<6 months), 4 weeks (6–18 months), 6 weeks (18–36 months), 8 weeks (36+ months). Kıdem: 30 days/year (ceiling applies). Unfair dismissal (5+ employees, 6+ months): reinstatement right or 4–8 months' additional compensation. Rippling EOR manages full termination calculation.
