Employer of Record (EOR) in Turkiye: Complete 2026 Guide
Guide to using an EOR in Turkiye — costs, SGK obligations, top providers, and comparison with setting up a local entity.
Turkiye bridges Europe and Asia with a large, young workforce and a diversified economy. With 3.5-4.0% GDP growth forecast for 2026 and strengths in manufacturing, automotive, textiles, and IT services, it is an increasingly popular hiring destination — particularly for companies seeking European-adjacent talent at competitive rates.
However, Turkish employment law includes high SGK social security contributions (23.75% employer share before incentives), mandatory severance pay, overtime caps, and a cumulative progressive tax system. An Employer of Record (EOR) manages these complexities.
Why Use an EOR in Turkiye?
High SGK contributions. Employer social security contributions total 23.75% before incentives (18.75-21.75% after sector-based discounts). These cover retirement, health, short-term insurance, and unemployment.
Mandatory severance. Employees with 1+ year of service are entitled to severance pay upon termination — 30 days' gross salary per year of service, capped at a ceiling that adjusts semi-annually.
Cumulative tax system. Turkey's progressive tax is based on year-to-date cumulative income, meaning effective rates increase throughout the year. This creates complex monthly payroll calculations.
Overtime limits. Annual overtime is capped at 270 hours. Exceeding this limit triggers penalties.
Important
For a detailed breakdown of Turkish labor laws including minimum wages, SGK contributions, working hours, and leave policies, see our Turkiye Labor Law Compliance Guide.
Key Employment Regulations
| Regulation | Details |
|---|---|
| Minimum wage | TRY 33,030/month gross (2026) |
| Standard hours | 45 hours/week (max 9 hours/day) |
| Overtime | 150% of regular rate (max 270 hours/year) |
| Annual leave | 14 days (1-5 years of service) |
| Maternity leave | 16 weeks |
| Paternity leave | 5 days |
| Public holidays | 15.5 days |
| SGK employer | 23.75% (before incentives) |
| Severance | 30 days' salary per year of service |
| Notice period | 2-8 weeks based on service |
EOR Costs in Turkiye
Most EOR providers charge $400 to $600 per employee per month. Total statutory employer costs (SGK after incentives) add approximately 19-22% on top of gross salary.
EOR vs Setting Up a Local Entity
| Factor | EOR | Local Entity (Ltd Şti) |
|---|---|---|
| Setup cost | $0 | TRY 50,000-200,000 ($5K-$15K) |
| Setup time | 5-10 days | 3-7 business days |
| Best for | 1-8 employees | 8+ employees |
Break-even point: Turkish entity setup is fast (3-7 days). A Ltd Şti becomes cost-effective at 5-8 employees.
Top EOR Providers for Turkiye
| Provider | Owned Entity | Starting Price | Strengths |
|---|---|---|---|
| Deel | Yes | $599/mo | Fast onboarding |
| Remote | Yes | $599/mo | All owned entities |
| Velocity Global | Yes | Custom | Emerging market expertise |
| Multiplier | Partner | $400/mo | Lower cost option |
For a full comparison, see our Best Employer of Record Companies guide.
Managing a Team in Turkiye?
Track time, monitor productivity, and manage schedules across time zones with HiveDesk. Works with any EOR setup — $5/user/month, all features included.