Turkey offers a large, young, cost-competitive workforce bridging Europe and Asia, with a distinctive statutory severance system. All-in employer cost runs around 1.23x the gross salary. Here is what to know before your first Turkish hire.
Employment runs under the Labour Law, with written contracts and mandatory SGK social-security registration. A statutory severance pay (kıdem tazminatı) accrues at about a month's salary per year of service.
Employer SGK contributions add roughly 20-23% on top of gross salary (lower with the standard incentive), plus a statutory severance accrual on top.
Statutory severance is roughly 30 days' pay per year of service, subject to a legal ceiling per year, payable after one year of service.
Employees pay their SGK share plus income and stamp tax, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Turkish employment contract, payroll, SGK, and severance, handled. One invoice, flat $399 per month.