Labor Law Compliance Guide for Turkiye

This labor law guide for Türkiye has important information for businesses looking to hire employees or contractors in the country. Türkiye is a country in West Asia and Europe.

Category	Details
Minimum Wage	TRY 33,030 gross per month (TRY 28,075.50 net)
Overtime Wage	150% of regular hourly rate
Meal Breaks	Minimum 1-hour
Rest Breaks	15-minutes for every 4 hours worked
Working hours	9 hours per day, 45 hours per week
Salary Payment Cycle	Monthly
Payroll Taxes	SGK employer contributions 23.75% (before incentives); employee 15%
Paid Vacation	14 days for employees with 1-5 years of service
Overtime Hours	Over 45 hours per week (max 270 hours/year)
Night Shift Hours	150% of regular hourly rate
Holidays	15.5 days
No Work Days	Sundays

Turkiye, with its strategic location bridging Europe and Asia, continues to be a significant player in the global economy. In 2025, the country recorded 3.6% GDP growth with a nominal GDP of 63.02 trillion TRY and per capita income of approximately $18,040 USD. Growth forecasts for 2026 range from 3.5% to 4.0%. Key sectors driving Turkiye's economy include manufacturing, textiles, automotive, agriculture, and tourism.

The Turkish Lira (TRY) is the official currency of Turkiye.

Hiring Laws in Turkiye

When hiring employees in Turkiye, businesses are required to navigate specific regulations:

Businesses must register locally to hire workers. The setup cost for a business entity in Türkiye can vary but typically ranges around TRY 3,000 to TRY 8,000. Establishing or incorporating a business entity takes approximately 3 to 7 business days.

Employers need to sign formal employment contracts with their employees. The contract should include job description, salary, working hours, breaks, vacation days, and termination conditions.

The labor laws in Türkiye distinguish between employees and contractors. Contractors operate under a different set of obligations and are generally not provided the same benefits as employees.

Minimum Wage in Turkiye

Turkiye enforces a minimum wage law. As of 2026, the gross minimum wage is TRY 33,030 per month (TRY 28,075.50 net), representing a 27% increase over 2025. The total employer cost is approximately TRY 40,214 per month after the standard 2-point SGK incentive discount. The minimum wage rate is standardized and applies universally across the country, with no regional differences reported. There are exceptions where apprentices and interns may receive lower wages.

Additionally, employers are required to pay holiday pay on top of the standard salary.

Working Hours in Turkiye

The standard working hours in Turkiye are capped at 45 hours per week, ideally spread over six days with a maximum of 9 hours a day. Any work beyond this limit constitutes overtime, compensated at 150% of the regular hourly rate.

For night shifts, a similar premium is applied.

Workers must be a minimum of 15 years old, and stringent laws are in place against child labor.

Payroll and Taxes in Turkiye

Employee Contributions (SGK)

• SSI Premium (disability, old-age, survivors + general health): 14% of gross salary
• Unemployment Insurance: 1% of gross salary
• Total Employee: 15%

Employer Contributions (SGK)

• Disability, Old-Age, Survivors (MYO): 12% of gross salary (raised from 11% by Law 7566)
• General Health Insurance: 7.5% of gross salary
• Short-Term Insurance: 2.25% of gross salary
• Unemployment Insurance: 2% of gross salary
• Total Employer: 23.75% (before incentives)

Employer incentive discounts are available: a 5-point discount for the manufacturing sector (effective rate ~18.75%) and a 2-point discount for service/other sectors (effective rate ~21.75%). Under Law 7566, the SGK earnings ceiling was raised from 7.5x to 9x the minimum wage.

These contributions provide various benefits like retirement funds, unemployment benefits, and healthcare services.

Income Tax Regime

Turkey uses a cumulative progressive tax system -- the rate is determined by year-to-date cumulative income, so an employee's effective rate increases throughout the calendar year as earnings accumulate.

Cumulative Taxable Income (TRY)	Rate
Up to 190,000	15%
190,001 - 400,000	20%
400,001 - 1,500,000	27%
1,500,001 - 5,300,000	35%
Above 5,300,000	40%

Statutory Leave Policies in Turkiye

Employees in Turkiye are entitled to various leaves:

• Paid Vacation: 14 days annually for employees with 1-5 years of service.- Maternity Leave: 16 weeks (8 weeks pre-birth and 8 weeks post-birth).- Paternity Leave: 5 days.- Sick Leave: As per medical necessity, certified by a doctor.- Adoption Leave: 16 weeks for adopting parents.

List of holidays in Turkiye (2026):

Holiday	Date(s)
New Year’s Day	1 January
Eid al-Fitr (Ramazan Bayrami)	19 March (from 13:00) - 22 March (3.5 days)
National Sovereignty & Children’s Day	23 April
Labour & Solidarity Day	1 May
Commemoration of Ataturk, Youth & Sports Day	19 May
Eid al-Adha (Kurban Bayrami)	26 May - 30 May (4.5 days)
Democracy & National Unity Day	15 July
Victory Day	30 August
Republic Day	28 October (from 13:00) - 29 October (1.5 days)

Total: approximately 15.5 days of official public holidays.

Employee Benefits in Turkiye

In Turkiye, employers must provide the following benefits:

• Social Security: Covers retirement, disability, and death benefits.- Healthcare: Universal health coverage funded by employer and employee contributions.- Gratuity and Annual Bonuses: Some industries provide an annual bonus.- Other Benefits: Various allowances based on the industry and job nature.

Employee Termination in Turkiye

Turkiye does not follow At-Will Employment laws. The termination process includes:

• Notice Period: 2-8 weeks depending on the length of service.- Termination Benefits: Severance pay is mandatory for employees with at least one year of service.- Legal Challenges: Employees may challenge terminations through labor courts if they believe the dismissal was unfair.

Employers can legally terminate an employee for reasons such as consistent underperformance, misconduct, economic downturns, or business closures, provided the proper notice and severance protocols are followed.