Türkiye is often seen as a bridge between the European Union (EU) and Asia. With tax incentives for international investors, Türkiye is a great location for companies looking to expand.

However, expansions come with challenges such as setting up payroll. As a global Employer of Record (EOR), G-P can streamline payroll services in Türkiye to help you start working faster without the hassle of compliance. We’ll act as an extension of your team and handle everything from hiring employees to sourcing the right benefits.

Taxation rules in Türkiye

Employers and employees in Türkiye have to contribute social security premiums. Employers deduct the employee portion from gross salary and remit both portions, but the employer portion is paid separately by the employer. Tax contributions include:

  • Social security: Employees generally pay 15% total, including unemployment insurance. Employers generally pay 22.5%, or 17.5% with the 5-point incentive.
  • Unemployment insurance: Employees pay 1%, and employers pay 2%. The state also contributes 1%, paid by the government. Contributions generally apply within social security contribution base limits.

Türkiye payroll options for companies

You have several Türkiye payroll options to choose from, including:

  • Internal: Larger subsidiaries with a long-term commitment to Türkiye may want to set up their own internal payroll. You’ll need a large HR team with this option as well as an expert who can help with compliance.
  • Payroll processing company: Using a Türkiye payroll processing company will allow you to outsource your payroll. Keep in mind that your company will still be responsible for compliance and all actions the payroll provider takes.
  • G-P: The easiest way to run payroll in Türkiye and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time and compliantly, freeing you to focus on other important aspects of your business.

How to set up a payroll in Türkiye

You generally cannot set up payroll in your own name without a Turkish legal entity, branch, or other registrable local presence. A subsidiary in the country is one option, but companies may also use a compliant local employer arrangement. A subsidiary will allow you to operate much like a resident company and let you hire employees and choose a Türkiye payroll option. That said, it can take anywhere from a few weeks to a few months to register your subsidiary. Fortunately, G-P can cut that time down to as little as a day by using our existing subsidiary.

Entitlement/termination terms

Turkish labor law includes complicated entitlement and termination terms that you should include in an employment contract before setting up your payroll. Probation periods are limited to a maximum of 2 months, or up to 4 months if allowed by an applicable collective bargaining agreement. During probation, either party may terminate without notice or compensation, but the employee must still be paid for work performed and accrued entitlements. Termination costs can include notice obligations, and notice periods depend on how long the employee has worked for the company. For indefinite-term contracts, statutory notice is generally 2 weeks for less than 6 months’ service, 4 weeks for 6 months to 1.5 years, 6 weeks for 1.5 to 3 years, and 8 weeks for more than 3 years.

Streamline global payroll management with G-P

Hire and pay your team anywhere in the world with our agentic Global Employment Platform. Vetted labor law intelligence is embedded directly into your workflows to ensure 99% payroll accuracy wherever you hire.

Our platform is designed to integrate with the systems you already use. Sync employee payroll data automatically to create one reliable source of truth for your HR team.

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