Employer of Record (EOR) in Turkey 2025: The Complete Hiring Guide
- Gegidze • გეგიძე | Marketing
- 4 days ago
- 14 min read
Table of Contents:
Introduction
You’ve got candidates ready to start next week.
But payroll? not set up.
Entity? still “in progress.”
Your competitor? already made the offer.
This is the moment fast-growing teams keep running into.
The people are there. The roles are scoped. But the infrastructure? not built. and building it takes months, not days.
So where do smart companies turn when they want talent and speed?
In 2025, Turkey is where global teams are finding their edge, not just because it’s affordable, but because it actually works.
fluent English, strong tech and ops talent
40–60% lower total cost vs Western Europe
real-time overlap with EU, mena, and Central Asia
a business culture used to moving fast, and remote
And with the right employer of record (EOR), you can skip the setup entirely and hire legally in weeks, fully compliant, fully protected, fully operational.
It’s not a shortcut. It’s a strategy.
Turkey’s open. And the smartest teams are already there.
What is an Employer of Record (EOR) and how it works in Turkey
Let’s say you’ve found the perfect candidate in Istanbul.
Great fit. Ready to start. Salary agreed.
Only one problem: you don’t have a company in Turkey.
That’s where an Employer of Record (EOR) comes in.
An EOR is a local, legal employer that hires talent on your behalf. You manage the work, the EOR handles the local employment, tax, and compliance infrastructure.
Here’s how it works in Turkey, step by step:
You choose who to hire Whether it’s a developer in Ankara or a product manager in Izmir, you control the recruitment process.
We onboard them under our local Turkish entity Team Up signs a fully compliant employment contract in Turkish, enrolls the employee with SGK (Social Security Institution), and registers them with the tax office.
We run monthly payroll and contributions Salaries are paid in Turkish Lira, with all mandatory deductions handled:
Income tax (withheld at source)
Employer contributions (SGK, unemployment, stamp tax)
Employee pension and insurance
We manage benefits and entitlements Your team gets paid leave, public holidays, sick leave, maternity or paternity rights - all in line with Turkish Labor Law.
You keep full operational control The employee reports to you, follows your internal systems, and works as part of your team, just without the legal liability on your side.
We support the full lifecycle From compliant onboarding to offboarding, contract amendments to maternity leave processing, we handle it all.
You get speed, legal peace of mind, and total transparency.
They get a real job, not a sketchy contractor agreement.
No entity. No legal gaps. No delayed hires.
What makes hiring in Turkey without an EOR challenging
Turkey is a great place to hire. But trying to do it without local infrastructure? Not so much.
If you don’t have a Turkish entity, here’s what stands in your way:
You can’t legally employ anyone
Foreign companies can’t directly hire full-time employees in Turkey without setting up a legal entity. This means no compliant contracts, no tax registration, and no way to pay salaries through local payroll.
Entity setup is slow and expensive
To open a company in Turkey, you’ll need:
A registered office address
A Turkish bank account
A local tax ID
Capital requirements
Legal representation and a local accountant
The process can take weeks to months and cost thousands upfront.
Payroll and tax are not plug-and-play
You’ll need to register with the SGK (social security institution), calculate complex employer contributions (approx. 22.5% on top of salary), handle stamp tax, and file monthly reports in Turkish.
Contracts must follow Turkish labor law
Contracts must be in Turkish and include specific terms: notice periods, working hours, leave entitlements, termination clauses. Missing the fine print can mean legal exposure.
Employment compliance is strictly enforced
Turkey doesn’t mess around with labor violations. Late filings, misclassified contractors, or improper terminations can trigger audits, penalties, or lawsuits.
What an EOR in Turkey Actually Handles
You’ve got a role to fill. You’ve got the candidate. What you don’t have is a Turkish entity, a tax ID, or a payroll system built for the lira.
That’s what your Employer of Record (EOR) is for.
When you partner with an EOR like Team Up, we become the legal employer on paper, so you can hire locally in Turkey without jumping through bureaucratic hoops.
Here’s what we take off your plate:
1. Compliant employment contracts in Turkey
We issue fully compliant Turkish employment contracts that include:
Gross salary in Turkish Lira (TRY)
Job title, scope, probation, and working hours
Leave entitlements and notice periods
Termination clauses aligned with Turkish labor law
2. Payroll processing and tax contributions
We run monthly payroll and manage all statutory obligations:
Income tax withholding and filing
Employer social contributions (SGK, unemployment fund, stamp tax)
Currency conversion and salary payments in TRY
Monthly payroll reporting to Turkish authorities
3. Employee registration with SGK and the tax office
We register your employee with the Turkish Social Security Institution (SGK) and the tax authority, keeping everything compliant from day one.
4. Turkish employee benefits administration
We manage all required statutory benefits, plus any extras you want to offer:
Paid annual leave (minimum 14 working days)
Public holidays (15+ national days per year)
Paid maternity leave (16 weeks) and paternity leave (5 days)
Sick leave processing
Optional perks: health insurance, coworking memberships, wellness stipends, and home office setup
5. Onboarding and offboarding support in Turkey
We handle all compliance-related HR actions, including:
New hire onboarding and documentation
Benefits enrollment
Termination process, severance calculations, and final payroll
Legal paperwork and records management
6. Local HR support for Turkish employees
We offer direct support in Turkish and English for your team on:
Payroll questions
Time off and sick leave
Contract changes and documentation
Ongoing compliance and labor updates
Labor law, tax & compliance overview
Turkey isn’t a back-office outsourcing hub. It’s a serious talent market and it plays by real labor rules. If you’re hiring here, you can’t wing it with a contractor agreement or a quick fix pulled off Google Translate.
Get it wrong, and you’re looking at penalties, blocked payments, or worse… court.
Get it right, and you’ve got one of the best cost-to-talent ratios anywhere between Berlin and Dubai.
Employment contracts in Turkey
Contracts aren’t optional. Not in Turkey.
Every full-time employee needs a written agreement in Turkish, even if they speak perfect English. And the labor inspectors?
They don’t care if it’s your first hire, they care if the contract follows code.
Your Turkish employment contract must include:
Role and responsibilities
Gross salary in Turkish Lira (TRY)
Working hours (default: 45 hours/week)
Probation period (max 2 months)
Paid leave and holiday entitlements
Notice period and termination clauses
Bilingual contracts are fine, but the Turkish version is what holds up in court.
Working hours, public holidays & leave
Some basics you need to know:
Standard workweek: 45 hours, often 5 or 6 days
Paid annual leave:
14 days minimum (1–5 years of service)
20 days (after 5 years)
26 days (after 15 years)
Public holidays: 15+ per year, including Ramazan Bayramı, Kurban Bayramı, Republic Day, and New Year’s Day
Maternity leave: 16 weeks paid (8 before, 8 after birth)
Paternity leave: 5 days
Sick leave: Allowed with a doctor’s report; reimbursement handled through SGK (Social Security)
Yes, all of this must be tracked and reported. And yes, we do it for you.
Public holidays in Turkey
January 1New Year’s Day
April 23National Sovereignty and Children’s Day
May 1Labor and Solidarity Day
May 19Commemoration of Atatürk, Youth and Sports Day
July 15Democracy and National Unity Day
August 30Victory Day
October 29Republic Day
Payroll taxes & employer contributions
Turkey’s payroll system isn’t overly complex, but it’s strict. Every employer must contribute around 23–24% on top of the employee’s gross salary.
Payroll & taxes in Turkey
Employer | Employee | Other |
20.5% Social Security Premium | 15 - 40% Income tax (progressive) | 18% VAT |
2% Unemployment insurance fund | 14% Social security premium | 20% Corporate income tax |
2.5% Stamp tax on payroll | 1% Unemployment insurance | 15% Dividend tax |
If you miss a filing, get your calculation wrong, or under-report?
You’re looking at fines, delays in salary payments, and attention from the Vergi Dairesi (Tax Authority). That’s not a call you want to take.
We handle all of this, monthly payroll, contributions, filings, and payments, with full local compliance.
Termination in Turkey: not a DIY project
You can’t just say, “We’re letting you go.”
Terminating an employee in Turkey requires paperwork, process, and in some cases - severance.
You’ll need:
Proper written notice (2 to 8 weeks based on tenure)
Severance pay (after 1 year of service)
Documented cause (if not mutual)
Full payroll and benefit wrap-up
Cut corners, and you risk being dragged into labor court even months after the offboarding.
With Team Up, every hire is protected under local law, and every exit is handled the right way.
How much does it cost to use an EOR in Turkey?
If you're hiring in Turkey, cost is probably one of the reasons. Salaries are lower than Western Europe, payroll is more predictable, and the tax system, while strict, is relatively straightforward when handled by a local partner.
But let’s be clear: salary alone isn’t your total cost.
When using an Employer of Record (EOR) in Turkey, your monthly cost per employee includes:
1. Gross salary (paid in TRY)
A mid-level DevOps or Cloud Engineer in Turkey typically earns around €3,200/month. This is paid in Turkish Lira based on the exchange rate at the time of payroll.
2. Employer contributions (~23%)
As the legal employer, Team Up handles all mandatory contributions required under Turkish law, including:
Social Security (SGK): ~20.5%
Unemployment Insurance: 2%
Stamp Tax: 0.759%
On a €3,200 salary, these contributions add up to roughly €736/month.
3. Team Up’s flat EOR service fee
We charge a flat €299 per employee/month, which covers:
Legally compliant Turkish employment contracts
Payroll processing in TRY
Tax filings and SGK contributions
HR support in Turkish and English
Onboarding, offboarding, and employment documentation
No setup fees. No hidden costs. No FX markups.
Total monthly cost (example)
Item | Amount (EUR) |
Gross Salary | $3,200 |
Employer Contributions (~23%) | $736 |
Team Up EOR Fee | $299 |
Total Monthly Cost | $4,235 |
Note: Salaries are paid in TRY. Final amounts may vary slightly based on current FX rates.
What you can offer through an EOR in Turkey
Hiring top talent in Turkey is only half the battle.
Retaining them?
That comes down to what you can offer and whether it matches what candidates expect from a real, legal employer.
Through Team Up’s EOR in Turkey, you’re not just making compliant hires. You’re offering a complete employee experience with local benefits, perks, and support that meet (or exceed) market expectations.
Let’s break down exactly what you can provide:
Statutory employee benefits in Turkey
These aren’t “nice to haves”, these are non-negotiables under Turkish labor law.
We handle them for you, end-to-end.
Paid annual leave
14 working days minimum (after 1 year of service)
Increases to 20 days after 5 years, 26 days after 15 years
We track tenure, accruals, usage, and remaining balance
Public holidays
Over 15 national holidays are recognized and must be granted as paid days off
Includes major religious holidays (Ramazan Bayramı, Kurban Bayramı) and state holidays (Republic Day, National Sovereignty Day)
Maternity leave
16 weeks of fully paid leave 8 weeks before and 8 after childbirth
Extended unpaid leave is also an option if requested
We handle documentation, payment flow, and post-leave reintegration
Paternity leave
5 days of fully paid leave following the birth of a child
Automatically included in the employee’s benefits package
Sick leave
Leave is covered by SGK with a doctor’s note
Reimbursement is processed through Social Security
We handle filing, employee communication, and payroll coordination
Optional perks you can offer employees in Turkey
To stay competitive, you need to go beyond the legal minimum. Team Up makes it easy to layer in perks that matter to local talent.
Private health insurance in Turkey
Not mandatory but highly valued
We work with top providers to offer flexible plans
Fully managed through payroll, tracked, and legal
Coworking spaces in Istanbul, Ankara & Beyond
Offer access to workspaces across major cities
Monthly or flexible membership plans are available
Boosts retention and productivity for hybrid teams
Home office and equipment stipends
Budget for internet, phone, desks, and ergonomic chairs
We can also deliver laptops and monitors locally
No customs or international shipping delays
Bonus Pay or 13th-Month Salary
Optional, but attractive in tech and product roles
We manage contracts, payroll, and tax handling for any structure
Wellness and Learning Allowances
Add gym access, Udemy subscriptions, or monthly wellness perks
We structure everything through payroll to ensure compliance
EOR vs Payroll outsourcing in Turkey
You can run payroll in Turkey without hiring an EOR.
But should you?
That depends on one thing: Do you actually have a legal entity in Turkey?
Because if you don’t, no payroll company in Istanbul can magically make you compliant. And if you do? You’re still on the hook for a whole lot more than just sending salaries.
Let’s break this down like a local would.
Payroll outsourcing in Turkey
You’ve got a Turkish şirket (legal entity).
You’ve registered with the Tax Office and SGK.
You know what a “damga vergisi” is.
You have someone local managing HR and labor code updates.
Then sure, payroll outsourcing works.
It gives you help with:
Calculating gross-to-net
Filing monthly tax reports
Submitting payments to SGK
Preparing pay slips
But you still need to:
Hire a lawyer for employment contracts (in Turkish)
Manage onboarding, sick leave, and terminations
Keep up with new regulations (they change fast)
Handle severance and disputes correctly
Deal with surprise audits from the Social Security Administration
This is local ownership. And unless you’re ready to be a Turkish employer in every sense, it’s not light work.
EOR in Turkey
An EOR like Team Up is your local employer on paper, with the government, with SGK. But your people? They work for you.
We make it possible to:
Hire in days, not months
Skip opening a company
Stay compliant with the Turkish labor code
Offer real benefits like paid leave, insurance, and coworking
Avoid the court if something goes sideways
You manage performance. We handle paperwork. In Turkish.
You can’t outsource payroll if you’re not legally allowed to pay people in the first place.
If you're not ready to open a Turkish entity, or just don’t want to, EOR isn’t a shortcut. It’s the only way to hire legally in Turkey without taking on the full employer load yourself.
And if you are set up? We'll still tell you straight whether EOR or payroll outsourcing fits better.
How to choose the right EOR in Turkey
Not all Employer of Record providers are ready for Turkey, even if their website says they are.
The truth? A lot of “global” EORs don’t have a local entity here. They subcontract. They improvise. And when something goes wrong, you’re left cleaning it up.
If you want to hire in Turkey the right way, here’s how to choose a partner that actually knows the market.
1. They must have a real legal presence in Turkey
No third parties. No off-the-record setups. Your EOR should be the legal employer of record, not someone renting another firm’s license.
Ask:
Do you own a registered entity in Turkey?
Who signs the employment contracts?
Who files the payroll and tax reports, your team or a vendor?
If they hesitate, they’re not local.
2. They must actually understand Turkish labor law
It’s not enough to run payroll. Your provider needs to handle real-life compliance, maternity leave, terminations, public holidays, probation periods, and contract renewals.
Ask:
How do you track annual leave and sick leave?
Do you handle maternity/paternity pay administration?
What’s your process for compliant offboarding?
The right EOR should answer confidently, not forward your question to “legal.”
3. They must support your team like a real employer would
In Turkey, your team expects structure, support, and responsiveness. If your EOR disappears after the contract is signed, it’s your company’s reputation on the line not theirs.
Ask:
Will employees have local HR support (in Turkish)?
Can we offer health insurance, coworking, or stipends?
What’s your average response time to employee requests?
If they treat your team like a transaction, you’ll lose trust fast.
4. Their pricing should be flat, transparent, and complete
A low sticker price means nothing if every email turns into an extra line item. You want one fee that covers everything: contracts, payroll, compliance, and support.
Ask:
Is your price flat per employee, or based on salary?
Are onboarding/offboarding included?
Are equipment, benefits, or reporting extra?
You should get one invoice. One number. No guesswork.
5. They should be fast, flexible, and responsive
Whether you’re hiring in Istanbul or testing a remote role from abroad, you want a partner that can move fast and adapt to how your team works.
Ask:
How quickly can we hire someone?
Can we switch a contractor to full-time under your entity?
Will we have a dedicated point of contact?
If their process feels like government paperwork, keep looking.
Is an EOR the right move for you?
Let’s keep it simple.
If you’re trying to build a remote team in Turkey without opening a local entity, navigating Turkish labor law, or risking compliance headaches, an Employer of Record (EOR) is probably your best option.
But it’s not for everyone. So let’s make the call easier.
An EOR in Turkey makes sense if you:
Want to hire 1-10 employees quickly, without opening a company
Need to test the Turkish market before committing long-term
Don’t want to deal with payroll tax, SGK, or contract compliance
Want to offer real benefits, like paid leave, insurance, and coworking
Need to move fast and avoid months of setup or red tape
Care about staying fully legal, but don’t want to build local HR
Want one monthly invoice, no surprises
An EOR might not be the right fit if you:
Plan to open a full-scale office in Turkey within a few months
Are hiring 50+ people and need full control over local ops
Already have a registered Turkish entity with HR and legal teams
Need highly specialized employment structures for enterprise-scale hiring
In those cases, setting up your own entity or combining with a payroll provider may be smarter long-term.
Bottom Line
Hiring in Turkey shouldn’t mean opening a company, hiring a lawyer, and spending weeks learning local labor law. It should mean finding great talent and getting to work.
With Team Up as your EOR, you skip the setup, the stress, and the slowdowns. You get:
Fast, legal hiring with no entity required
Locally compliant contracts, payroll, and benefits
Real support in Turkish and English
One monthly invoice and zero surprises
This isn’t a workaround. It’s how smart companies build lean, remote teams in Turkey without the cost or complexity of going it alone.
Ready to hire in Turkey legally, quickly, and without the overhead?
Frequently asked questions (FAQs)
What is an Employer of Record (EOR) in Turkey?
An Employer of Record in Turkey is a third-party company (like Team Up) that becomes the legal employer of your team members in Turkey. You manage their work, we handle local compliance, payroll, contracts, tax filings, and benefits. It allows you to hire legally without setting up a Turkish entity.