Employment law in Turkey for foreign employers

The rules a foreign-owned company must follow from the first employment contract to the last working day, with the 2026 figures.

Figures verified October 2026

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Short answer

Employment in Turkey is governed by the Labour Law No. 4857. Contracts are indefinite by default, probation runs up to two months, the working week is 45 hours and annual leave starts at 14 working days. Ending a contract costs notice of 2 to 8 weeks and, after one year of service, severance of 30 days' pay per year, capped at TRY 73,729.87 per year in the second half of 2026. From 30 employees the employer also needs a valid reason to dismiss. Employer contributions add 23.75% to gross pay before incentives.

What must an employment contract in Turkey contain?

The Labour Law No. 4857 applies to almost every private employer. A contract for a term of one year or more must be in writing; for shorter or indefinite terms the employer must hand the employee a written statement of the main terms within two months. Indefinite term is the default. A fixed term is valid only with an objective reason, such as a project with a defined end, and repeated fixed terms are treated as indefinite. Turkish companies must use Turkish in their contracts under Law No. 805, so the usual format is a Turkish text with an English version, the Turkish text prevailing.

A good first contract covers the job title and duties, the place of work and any remote working arrangement, the start date, gross pay and payment date, allowances, working hours, the probation period, annual leave, confidentiality, intellectual property and, where justified, a non-compete clause. Non-compete clauses must be in writing and limited in place, scope and time, at most two years, under Articles 444 to 447 of the Code of Obligations.

Probation may last up to 2 months, or up to 4 months under a collective agreement. During probation either side may end the contract without notice or compensation. The probation days still count towards length of service.

What are the working time and leave rules?

RuleStatutory position
Working week45 hours, spread over up to six days. Daily working time may not exceed 11 hours
OvertimePaid at 150% of the hourly wage, or taken as time off at 1.5 hours per hour worked. At most 270 hours a year, with the employee's written consent
Weekly rest and public holidaysOne uninterrupted rest day of 24 hours a week. 15.5 days of paid public holidays a year; work on a public holiday is paid double
Annual leave14 working days after 1 to 5 years of service, 20 days after more than 5 years, 26 days after more than 15 years. At least 20 days for employees under 18 or over 50. Leave accrues after the first year
Maternity and paternity leave16 weeks of maternity leave, paid by social security. 5 days of paternity leave
Remote workAllowed with a written agreement that covers the work, equipment, costs and working hours

What does an employee cost the employer?

Wages are set and paid in Turkish lira; foreign-currency pay is allowed only in narrow cases, for example for employees who are not Turkish citizens. Employers with five or more employees must pay through a bank. Pay is monthly, with a payslip. There is no statutory 13th salary. On top of gross pay the employer bears the contributions below; the rates follow the 2026 minimum wage summary by EY Türkiye.

Item2026Note
Gross minimum wageTRY 33,030 a monthNet TRY 28,075.50. In force since 1 January 2026
Employer social security premium21.75% of gross pay19.75% for employers that file and pay on time; 16.75% in manufacturing until the end of 2026
Employer unemployment insurance2% of gross payNo reduction
Employee social security and unemployment insurance14% + 1% of gross payWithheld by the employer
Premium ceilingTRY 297,270 a monthNine times the minimum wage. No premiums above this gross pay
Stamp tax on wages0.759%The minimum-wage portion is exempt
Minimum-wage employee, total employer costTRY 40,874.63 a monthTRY 40,214.03 with the 2-point reduction, TRY 39,223.13 in manufacturing

Income tax is withheld on the cumulative taxable wage of the calendar year, so an employee's net pay falls in the months after each bracket is crossed. The tax that would fall on a minimum wage is exempt for every employee. The 2026 tariff for wage income follows Income Tax General Communiqué No. 332.

Taxable wage income in 2026Rate
Up to TRY 190,00015%
TRY 190,000 to 400,00020%
TRY 400,000 to 1,500,00027%
TRY 1,500,000 to 5,300,00035%
Above TRY 5,300,00040%

Example: an employee on TRY 100,000 gross costs the employer TRY 123,750 a month before incentives and takes home about TRY 69,500 on average over the year. Meal cards up to TRY 300 and commuting allowances up to TRY 158 per working day are exempt from income tax in 2026. The employer cost calculator runs the figures for any salary.

What does it cost to end an employment contract?

Outside probation, an indefinite contract ends with notice. The statutory periods under Article 17 of the Labour Law are minimums and can be extended by contract. The employer may pay the notice period instead of having it worked.

Length of serviceNotice period
Less than 6 months2 weeks
6 months to 18 months4 weeks
18 months to 3 years6 weeks
More than 3 years8 weeks

Severance pay is due after at least one year of service when the employer ends the contract without just cause, when the employee ends it for just cause, and in listed cases such as military service, retirement, marriage of a female employee within one year and death. It is not due when the employee simply resigns or is dismissed for just cause under Article 25/II, for example for serious misconduct. The amount is 30 days of the last gross pay, including regular benefits such as meal and transport allowances, for each full year of service, pro rata for the remainder. The pay used for each year is capped: TRY 73,729.87 from 1 July to 31 December 2026, after TRY 64,948.77 in the first half of the year, under the Treasury and Finance Ministry circular of 3 July 2026. Only stamp tax is deducted from severance pay. Mutual termination agreements are common and usually start from notice pay plus severance.

Example: 3 years of service, TRY 100,000 gross, no benefitsAmount
Notice pay, 8 weeksTRY 186,666.67
Severance, 3 years at the capped base of TRY 73,729.87TRY 221,189.61
14 days of unused annual leaveTRY 46,666.67
Total before employee taxesTRY 454,522.95

Without the cap the severance in this example would be TRY 300,000. The severance and notice pay calculator runs the same arithmetic for your dates and pay.

What is job security and when does it apply?

Articles 18 to 21 of the Labour Law protect employees on an indefinite contract with at least six months of service at an employer with 30 or more employees, counted across all of the employer's workplaces in Turkey. Such an employee may be dismissed only for a valid reason connected with their capacity or conduct or with the requirements of the business, stated in a written notice, after a chance to respond where conduct is the reason. Managers who run the whole enterprise are excluded.

The employee can challenge the dismissal, first through mandatory mediation within one month and then in the labour court within two weeks. If the court finds the dismissal invalid, it orders reinstatement. An employer that does not reinstate within one month of the employee's application pays compensation of 4 to 8 months' pay, plus up to 4 months' pay for the period the employee was idle. Employees outside job security can claim three times the notice pay if the dismissal was abusive. Mandatory mediation applies to all claims between employer and employee since 2018.

What other obligations does an employer have?

  • Register the workplace with the Social Security Institution before the first employee starts, and register each employee at the latest on the day before the first working day
  • File the monthly withholding and premium declaration and pay premiums by the end of the following month; late payment forfeits the premium reduction
  • Occupational health and safety under Law No. 6331: risk assessment, employee training, and an occupational physician and safety specialist according to the hazard class and headcount
  • Employ disabled staff at 3% of the headcount once the workplace reaches 50 employees
  • Give employees a data protection notice and keep personnel files under the data protection law KVKK; register in the data controller registry where the thresholds apply
  • Keep records of working time, overtime consent, annual leave and payslips

Can we hire foreign nationals?

Yes, with a work permit applied for by the employer. The company needs five Turkish employees per foreign employee, must meet a capital or turnover test and must pay the foreigner a multiple of the minimum wage set by role. See the work permit chapter and the eligibility checker. For recruiting the Turkish employees themselves, see first hires in Turkey.

Common questions

Is a written employment contract required in Turkey?

A contract for a term of one year or more must be in writing. For other contracts the employer must give the employee a written statement of the main terms within two months. In practice every contract is put in writing, in Turkish with an English version.

How long is the probation period in Turkey?

Up to 2 months, or up to 4 months under a collective agreement. During probation either side may end the contract without notice or compensation.

What are the notice periods in Turkey?

2 weeks for less than 6 months of service, 4 weeks from 6 to 18 months, 6 weeks from 18 months to 3 years and 8 weeks above 3 years. The employer can pay in lieu of notice.

How is severance pay calculated and is there a cap?

30 days of the last gross pay, including regular benefits, for each year of service after the first year, pro rata for the remainder. The pay base is capped per year of service: TRY 73,729.87 from 1 July to 31 December 2026. Only stamp tax is deducted.

Can I dismiss an employee without giving a reason?

With fewer than 30 employees, yes, with notice or pay in lieu and severance where due, unless the dismissal is abusive. With 30 or more employees and six months of service, the employee is protected: the employer needs a valid reason stated in writing, and an invalid dismissal leads to reinstatement or compensation of 4 to 8 months' pay.

How much does a TRY 100,000 gross salary cost the employer?

TRY 123,750 a month before incentives: gross pay plus 21.75% social security and 2% unemployment insurance. With the 2-point reduction for timely payment it is TRY 121,750. The employee takes home about TRY 69,500 on average over the year.

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