Turkey

Overview

Currency

Turkish Lira (TRY)

Capital

Ankara

Time Zone

GMT+3

Employer Tax

22.50%

VAT

18.00%

Fiscal Year

1 Jan - 31 Dec

Table of Contents

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Introduction

Turkey is a transcontinental country, located partly in Western Asia and partly in Southeastern Europe. It has a rich cultural and historical heritage, with influences from the Ottoman Empire, Byzantine Empire, and ancient Greek civilizations. Turkey is also known for its scenic beauty, including stunning coastlines, mountains, and unique geological formations.

Area

Turkey covers a land area of 783,356 square kilometers, making it the 36th largest country in the world. It is bordered by eight countries, including Bulgaria, Greece, Georgia, Armenia, Azerbaijan, Iran, Iraq, and Syria. The country also has a coastline along the Mediterranean, Aegean, and Black Seas.

Climate

Turkey has a diverse climate, with Mediterranean, continental, and oceanic influences. The coastal regions have a mild Mediterranean climate with warm summers and mild winters, while the inland regions have a more continental climate with hot summers and cold winters. The eastern regions of Turkey experience harsh winters, with heavy snowfall and low temperatures.

Culture

Turkey is a diverse country with a rich cultural heritage, shaped by its history and geography. The culture is influenced by various civilizations, including the Ottoman Empire, Byzantine Empire, and ancient Greek and Roman civilizations. The country is known for its traditional music, dance, and cuisine, including dishes such as kebabs, meze, and baklava.

Religion

The majority of the population in Turkey is Muslim, with approximately 99% of the population being followers of Sunni Islam. There are also small Christian and Jewish communities in the country.

Official Language

The official language of Turkey is Turkish, which is spoken by the majority of the population. Turkish is a member of the Turkic language family and is written using the Latin alphabet. English and other European languages are also spoken in tourist areas and major cities.

Payroll Information

Payroll Cycle

In Turkey, the payroll cycle is generally monthly, and employers are required to pay their employees no later than the 7th of the following month. Employers are also required to deduct income tax, social security contributions, and other mandatory deductions from employee salaries.

Employment Law

Turkey has several employment laws that employers must comply with. The Labor Law regulates the terms and conditions of employment, including minimum wage, working hours, overtime pay, and leave entitlements. Employers are also required to provide employees with a safe working environment and are responsible for workplace accidents.

Employment Contract:Employers are required to provide employees with a written employment contract, which must be in Turkish and include the following information:

  • Job title and description
  • Salary and benefits
  • Working hours and overtime pay
  • Duration of employment
  • Notice period and termination terms
  • Employee benefits, such as health insurance and social security contributions

Employment Contract

Employment contracts may be for a fixed term or indefinite, and employers are required to provide employees with notice of termination, which varies depending on the length of service.

Employers are also required to register employees with the Social Security Institution and contribute to the social security system, which provides employees with access to healthcare, pensions, and disability benefits.

Probation Period / Trial Period

Employers in Turkey may establish a probationary period for new employees, which cannot exceed two months. During this period, either the employer or the employee can terminate the employment contract without any notice or compensation.

Working Hours

The standard working hours in Turkey are 45 hours per week, and the daily working hours cannot exceed 11 hours. Employees are entitled to a minimum of one day off per week, and employers are required to provide a minimum of 20 days of paid annual leave.

Overtime

Employees in Turkey are entitled to overtime pay for any work done over their standard working hours. Overtime pay is calculated at a rate of at least 1.5 times the regular hourly wage.

Bonus

Employers in Turkey may choose to provide their employees with bonuses, which are usually paid out annually or twice a year. Bonuses may be in the form of a fixed amount or a percentage of an employee's salary.

Termination

Employers are required to provide their employees with notice of termination, which varies depending on the length of service. The notice period is usually two weeks for employees with less than five years of service and four weeks for those with more than five years of service. Employers can terminate an employment contract without notice if the employee engages in serious misconduct.

Notice Period

In Turkey, notice periods are an important part of employment contracts, and both employers and employees are required to comply with them. The notice period is the amount of time that either party must give before terminating an employment contract.

Redundancy / Severance Pay

Employers in Turkey must provide their employees with severance pay if their employment is terminated due to redundancy. The amount of severance pay is calculated based on the employee's length of service and salary. The Labor Law also provides employees with the right to challenge their dismissal if they believe it was unjustified.

Maternity Leave

Female employees in Turkey are entitled to maternity leave, which is usually 16 weeks long. Maternity leave can be taken before or after the birth of the child, and employees are entitled to receive 100% of their salary during this time. Female employees are also entitled to take additional unpaid leave for up to 6 months after the maternity leave period.

Paternity Leave

Male employees in Turkey are entitled to paternity leave, which is usually for up to 5 working days. During paternity leave, employees are entitled to receive 100% of their salary.

Parental Leave

Both parents in Turkey are entitled to parental leave, which can be taken for up to 6 months after the maternity leave period. Parental leave is unpaid, but employees are entitled to return to their previous position or an equivalent one after the leave period.

Vacation and Annual Leave (paid time off)

Employees in Turkey are entitled to a minimum of 20 days of paid annual leave, which can be increased to up to 26 days based on an employee's length of service. Employers are required to provide annual leave to their employees and cannot request that employees work during their annual leave period.

Sick Leave

Employees in Turkey are entitled to sick leave, which can be taken for up to 6 months with full pay. Employers are required to provide their employees with sick leave, and employees must provide medical certification for any period of leave longer than 3 days.

Other Leave

Employees in Turkey may also be entitled to additional types of leave, such as marriage leave, funeral leave, and military service leave. The duration and conditions of these types of leave may vary based on an employee's contract and employment status.

Public Holiday

Turkey has several public holidays, including religious holidays, national holidays, and commemoration days. Employees are entitled to take the day off work for public holidays, and employers are required to pay their employees for these days. The exact number and dates of public holidays may vary from year to year.

Other Benefits

Employees in Turkey are entitled to receive a variety of benefits, including health insurance, retirement benefits, and severance pay. Employers are required to make contributions to the social security system on behalf of their employees, and employees may also be eligible for other benefits such as transportation allowances or meal vouchers.

Taxation

Individuals in Turkey are subject to personal income tax and social security contributions, while businesses are subject to corporate tax and other taxes such as VAT and property tax. It is important for individuals and businesses to understand their tax obligations and comply with tax laws and regulations to avoid penalties and legal issues.

Personal Income Tax

The personal income tax in Turkey is a progressive tax system, which means that the tax rate increases as the income level increases. The tax rates range from 15% to 35%, depending on the income level. The first 24,000 TL of income is tax-free, and deductions are allowed for certain expenses such as health insurance, pension contributions, and donations.

Social Security

All employees in Turkey are required to pay social security contributions, which are calculated based on their salary. The employer is responsible for deducting the social security contributions from the employee's salary and paying the contributions to the Social Security Institution. The social security contributions cover health insurance, retirement, and unemployment benefits.

Visas and Foreign Workers

General Information

To obtain a work visa in Turkey, individuals must have a valid job offer from a Turkish employer and meet certain eligibility requirements. The application process for a work visa typically involves several steps, including obtaining a work permit from the Ministry of Labor and Social Security and applying for a visa at a Turkish embassy or consulate.

Eligibility Requirements:To be eligible for a work visa in Turkey, individuals must meet the following requirements:

  1. Have a valid job offer from a Turkish employer
  2. Meet the qualifications and experience requirements for the job
  3. Obtain a work permit from the Ministry of Labor and Social Security
  4. Have a valid passport and other required documentation
  5. Pass a medical examination and obtain health insurance
  6. Pay the required visa and processing fees

Application Process:The application process for a work visa in Turkey typically involves the following steps:

  1. Obtain a job offer from a Turkish employer
  2. Apply for a work permit from the Ministry of Labor and Social Security
  3. Receive the work permit approval and notification from the employer
  4. Apply for a visa at a Turkish embassy or consulate
  5. Submit the required documentation, including a passport, work permit, and health insurance certificate
  6. Pay the visa and processing fees
  7. Attend an interview, if required
  8. Receive the work visa

The processing time for a work visa in Turkey can vary depending on the applicant's country of origin and other factors. It is important for individuals to follow the application process carefully and ensure they meet all eligibility requirements to avoid delays or rejections.