Hiring Employees in Turkey 2026: Contracts, Payroll and SGK Guide

Hiring employees in Turkey requires three things in order: a locally registered company, an SGK enrolment filed the day before the person starts, and a written employment contract. The cost goes beyond the wage itself. As the employer you pay the SGK employer contribution on top of salary, and you withhold the employee contribution and income tax from the gross. As of this writing (September 2026), employment relationships in Turkey are governed mainly by Labour Law No. 4857 (İş Kanunu), and the exact rates and thresholds change with policy, so confirm the current figures before you act.

Key Takeaways

• The SGK enrolment notice (işe giriş bildirgesi) generally has to be filed the day before the employee starts work; putting someone to work before that filing is a violation.
• Under the SGK rate structure as of writing, total social security contributions are typically levied at roughly 34% to 37.5% of gross salary, split between employer and employee, with the employer carrying the larger share.
• Under Labour Law No. 4857, an employee with one full year of continuous service can claim severance pay (kıdem tazminatı) when they leave under qualifying circumstances, at a benchmark of about one month's salary per completed year, subject to a state-published ceiling.
• Under the Labour Law, the statutory weekly working limit is generally 45 hours, and paid annual leave after one year of service is usually no fewer than 14 days, rising with seniority.
• Employing foreign staff, Chinese nationals included, needs a separate work permit approved by the Ministry of Labour and Social Security, and a local-headcount quota commonly applies.

What Do You Need Before Hiring Employees in Turkey?

A company registered in Turkey and recorded with the Social Security Institution (SGK, Sosyal Güvenlik Kurumu) as an employer is required before you can hire formal staff. An individual cannot take on permanent employees and pay their social security as a natural person. The employing entity must be a company with a tax number that is registered with SGK as an employer. If you do not yet have a Turkish company, the first step is incorporation. When we handle company registration for Chinese investors in Turkey, we set up the tax number, the bank account and the SGK employer registration together, so that you are legally able to hire.

Once the entity is in place, the workplace (işyeri) must also be registered with SGK to obtain a workplace number. Every new hire then has to be enrolled before their first day. This process is tied closely to your company's routine bookkeeping and tax duties, which you can read alongside our guide to a Turkish company's annual accounting, tax and audit obligations.

What Types of Employment Contract Exist in Turkey?

Turkish employment contracts fall mainly into indefinite-term (belirsiz süreli) and fixed-term (belirli süreli), with Labour Law No. 4857 setting the requirements for each. The indefinite-term contract is the most common form and the legal default, with no agreed end date. A fixed-term contract is permitted only when the work itself has an objective time limit (a specific project, a defined season). Repeated renewals of fixed-term contracts are treated as a conversion to an indefinite-term relationship.

Part-time contracts, remote-work contracts and temporary arrangements also exist. Under the Labour Law, a contract lasting more than one month should be in writing. A written contract sets out the role, pay, working hours and probation, reducing later disputes. We recommend drawing up at least one formal Turkish-language text, with a Chinese or English version alongside where needed, so that management on the China side understands the terms.

How Are Wages and the Minimum Wage Set When Hiring Employees in Turkey?

Employers must pay no less than the national minimum wage and keep a record by paying through the bank. The Minimum Wage Determination Commission (Asgari Ücret Tespit Komisyonu) under the Ministry of Labour and Social Security publishes the rate. It applies to every sector nationwide and, as of writing, is revised at least once a year. Treat the current amount as whatever the commission last announced.

Pay is normally agreed in the contract as a "gross" figure (brüt), while the employee receives the "net" after the employee social security share and income tax are deducted. Under Turkish tax rules, wage income tax is withheld on a progressive scale, deducted monthly by the employer and declared to the Revenue Administration (GİB, Gelir İdaresi Başkanlığı). For the employer, the real cost of a hire equals net pay plus the employee's withheld portion plus the employer social security contribution. Budget on gross pay plus the employer contribution rather than on the take-home number.

How Much Do Social Security (SGK) Costs Add When Hiring Employees in Turkey?

SGK social security contributions run at roughly 34% to 37.5% of gross salary as of writing, shared between employer and employee. This is the cost most often underestimated when hiring employees in Turkey. Coverage includes pensions, health, work-accident and unemployment insurance, and the contribution base is the employee's gross salary between a statutory floor and ceiling set by SGK. The employee share (including the employee part of unemployment insurance) is usually around 15%, withheld from salary, while the employer share makes up the larger remainder.

Each month the employer files and pays that month's premiums to SGK through the combined return (muhtasar ve prim hizmet beyannamesi). Eligible employers who pay in full and on time may qualify for a partial premium discount from the state (such as the Treasury's five-point subsidy, as of writing). Whether it applies depends on the compliance record and the current policy. An employee's SGK enrolment also governs the public health coverage of the worker and their family, which is the same system we cover in our guide to health insurance and SGK for Chinese residents in Turkey. Rates, floors, ceilings and subsidies move every year, so verify the actual numbers against the current SGK announcements with an advisor.

How Do Probation, Working Hours and Paid Leave Work?

Probation on a Turkish employment contract is capped at two months by default and can be extended to four months at most through a collective agreement. During probation either side may end the contract without a notice period, but the employee's wage and social security rights remain protected by law.

Under Labour Law No. 4857 the statutory weekly limit is 45 hours, and anything above that counts as overtime. Overtime is payable at no less than 1.5 times the normal hourly rate or may be offset with compensatory time off. Paid annual leave accrues once an employee completes one continuous year. The statutory minimum rises with seniority: one to five years of service earns at least 14 days a year, five to fifteen years at least 20 days, and more than fifteen years at least 26 days, subject to the current text of the Labour Law.

How Are Termination, Severance and Notice Periods Calculated?

Terminating employees in Turkey means following strict labour-protection rules, or facing severance, notice pay and reinstatement claims. Under Labour Law No. 4857, an employee dismissed for reasons other than their own serious fault may claim two types of compensation.

The first is severance pay (kıdem tazminatı), which applies to employees with one full year of continuous service at a benchmark of about one month's gross salary per completed year, subject to a ceiling the Ministry of Labour publishes periodically. The second is notice pay (ihbar tazminatı): the notice period runs from two to eight weeks by seniority, and the side that fails to give notice compensates the other at the corresponding wage.

For employees with more than six months of continuous service in a business above a certain size, "job security" (iş güvencesi) also applies. This means the employer needs a valid and justifiable reason to dismiss. Failing that, the employee can bring a reinstatement action. A proper dismissal in Turkey usually needs a written reason, any required warning steps, and a settlement statement. For complex situations involving redundancies, disputes or a cross-border employment structure, a compliance review before you act is worth the time.

What Steps Apply to Hiring Foreign and Chinese Staff?

Employing a non-Turkish national requires a work permit issued by the Ministry of Labour and Social Security (Çalışma ve Sosyal Güvenlik Bakanlığı), or the employment is unlawful. The work permit is usually applied for online by the Turkish company as the employer. The review looks at the company's paid-in capital, turnover and existing staff structure. A common threshold is the quota requirement: for each foreign employee, the company often has to already employ around five Turkish nationals, subject to the authority's current requirements as of writing.

If you plan to post Chinese management or technical staff to a Turkish company, the work permit and residence permit are usually arranged together. Planning should start early so it lines up with incorporation and the hiring timeline. We assist with work permits and posted-staff quota planning in Turkey, so that the legal status of a foreign team and the social security and employment of local staff sit in one coordinated plan.

Hiring employees in Turkey is a system that links company registration, written contracts, payroll, SGK enrolment and dismissal compliance. A gap in any one link can bring fines or disputes. Our Mandarin-speaking team in Istanbul can support you end to end, from the corporate entity and the employment plan to the social security and work permits of both local and foreign staff. We report back in Chinese at each milestone. If you would like to work through a specific plan for hiring employees in Turkey, book a free consultation in Mandarin or English.

Frequently Asked Questions

Do I have to register a company before hiring employees in Turkey?

Yes, hiring formal staff legally requires a company entity that is registered in Turkey and recorded with SGK as an employer. An individual cannot take on permanent formal staff as a natural person. At incorporation you should set up the tax number, the employer registration and the workplace registration together, and only then can you enrol employees.

Who pays Turkish social security, and how much is it?

Employer and employee share the cost. As of writing, the combined rate is roughly 34% to 37.5% of gross salary, with the employee share withheld from pay and the employer share borne separately. Eligible employers may receive a state premium subsidy. Rates, floors and ceilings are adjusted yearly, so rely on the current SGK announcement.

Must an employment contract be written and in Turkish?

A contract lasting more than one month should be in writing under the Labour Law. We recommend keeping at least one formal Turkish-language text. A written contract sets out the role, pay, working hours and probation, giving you stronger protection in a dispute. You can attach a Chinese or English version so that management on the China side understands the terms.

Do I have to pay severance when terminating employees in Turkey?

Usually yes. An employee with one full year of continuous service who leaves for reasons other than their own serious fault can claim severance pay. Under Labour Law No. 4857 the severance benchmark is about one month of gross salary per completed year, subject to a ceiling published by the Ministry of Labour. Notice pay may apply on top. Arbitrary dismissal can trigger a reinstatement action, so a compliance review before dismissal is advisable.

How long can a probation period be?

Two months by default, and up to four months at most through a collective agreement. During probation either side may end the contract without a notice period, while the employee's wage and social security rights remain protected by law throughout.

What is needed to employ staff posted from China?

A work permit approved by the Ministry of Labour and Social Security (Çalışma ve Sosyal Güvenlik Bakanlığı) is required first. A local-headcount quota commonly applies, as of writing. The work permit is usually arranged together with the residence permit and should be planned early to line up with incorporation and the hiring timeline. Employment with only a contract and no work permit is unlawful.

Who declares the employee's wage income tax?

The employer does. Wage income tax is withheld and paid monthly by the employer and declared to the Revenue Administration (GİB, Gelir İdaresi Başkanlığı). Turkey applies progressive withholding on wage income, and the employee receives the net after the employee social security share and income tax are deducted. For budgeting, estimate the true cost of a hire as gross pay plus the employer social security contribution.

How many hours a week can an employee work?

The statutory weekly limit under Labour Law No. 4857 is 45 hours, and anything above that counts as overtime. Overtime is payable at no less than 1.5 times the normal hourly rate or may be offset with compensatory time off. After one year of service an employee gains statutory paid annual leave, with the number of days rising by seniority.

Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, immigration, or investment advice. Policies and figures change; please confirm the current details and your personal eligibility with a qualified advisor before acting.