Turkey's labor market combines a large, young workforce with a legal framework that provides significant protections for employees. For foreign employers establishing operations in Turkey, understanding labor law is essential for avoiding costly disputes, penalties, and operational disruptions. Turkish labor law is distinctly employee-friendly, and the financial consequences of non-compliance, particularly around severance pay and social security contributions, can be severe.
The primary legislation governing employment relationships in Turkey is the Labor Law (Is Kanunu, Law No. 4857), supplemented by the Social Insurance and General Health Insurance Law (Law No. 5510), the Occupational Health and Safety Law (Law No. 6331), and the Trade Unions and Collective Bargaining Law (Law No. 6356). Together, these statutes create a comprehensive regulatory framework that covers every aspect of the employer-employee relationship from hiring to termination.
This guide covers the practical aspects of Turkish labor law that foreign employers need to understand: employment contracts, wages, working hours, social security, leave entitlements, severance pay, termination procedures, and work permits for foreign employees. The information reflects current regulations as of 2026.
Employment Contracts
Turkish labor law recognizes several types of employment contracts. Choosing the correct contract type at the outset is critical, as it determines the employer's obligations and the employee's rights throughout the relationship.
Definite-Term Contracts
Definite-term (fixed-term) contracts have a specified end date or are tied to the completion of a specific project. They automatically terminate at the end of the agreed period without requiring notice. However, Turkish law imposes strict conditions on their use:
- The contract must be in writing
- There must be an objective reason justifying the fixed term (seasonal work, specific project, temporary replacement)
- Successive renewals of fixed-term contracts without objective justification will cause the contract to be deemed indefinite-term by courts
- Employees on fixed-term contracts cannot be treated less favorably than comparable permanent employees
Fixed-term contracts are not a loophole for avoiding severance pay obligations. Turkish labor courts routinely reclassify renewed fixed-term contracts as indefinite-term, which retroactively creates severance pay liability from the original start date. Employers should use fixed-term contracts only when there is a genuine, documentable reason for the fixed duration.
Indefinite-Term Contracts
Indefinite-term contracts have no specified end date and continue until terminated by either party in accordance with legal requirements. This is the default contract type in Turkish law. If a written contract does not specify a term, or if a fixed-term contract is used without objective justification, the relationship is deemed indefinite-term.
Indefinite-term employment contracts do not need to be in writing for employees earning below a certain threshold, but written contracts are strongly recommended for evidentiary purposes. The contract should specify the position, duties, salary, working hours, and any probationary period.
Probationary Period
Employment contracts may include a probationary period of up to two months, extendable to four months by collective bargaining agreement. During probation, either party can terminate the contract without notice and without severance pay. However, the employer must still pay for work performed and cannot discriminate in exercising the right to terminate during probation.
Part-Time and On-Call Contracts
Part-time contracts are governed by the same labor law provisions as full-time contracts, with benefits and entitlements calculated proportionally. On-call work contracts require the employer to give at least four days' notice before calling the employee to work, and the employee must be paid for at least four hours per call regardless of actual working time.
Wages and Compensation
Minimum Wage
Turkey sets a national minimum wage that applies uniformly across all sectors, regions, and age groups. The Minimum Wage Determination Commission, comprising representatives of the government, employers, and employees, sets the rate annually each January.
| Component | Amount (Monthly, 2026) |
|---|---|
| Gross minimum wage | Set annually by Commission |
| Employee SSI premium (14%) | Deducted from gross |
| Employee unemployment insurance (1%) | Deducted from gross |
| Income tax (progressive: 15-40%) | Deducted from gross |
| Stamp duty (0.759%) | Deducted from gross |
| Employer SSI premium (20.5%) | Paid by employer on top of gross |
| Employer unemployment insurance (2%) | Paid by employer on top of gross |
| Total employer cost | Approximately 130-135% of net employee wage |
The minimum wage is paid 12 times per year. There is no mandatory 13th or 14th month salary under Turkish law, although some collective bargaining agreements or individual contracts may include additional payments.
Wage Payment Rules
Wages must be paid at least once per month, in Turkish Lira, through a bank account. Cash payment is prohibited for employers with five or more employees. Wage deductions are strictly limited to legal obligations (tax, SSI) and amounts authorized by law or court order. Employers cannot unilaterally deduct fines, damages, or other amounts from wages.
Late wage payment entitles the employee to the highest commercial interest rate on unpaid amounts. If wages are delayed by more than 20 days, employees can refuse to work without this constituting abandonment. Persistent wage non-payment is grounds for the employee to resign with severance pay.
Working Hours and Overtime
Standard Working Hours
The standard working week in Turkey is 45 hours. This can be distributed unevenly across the days of the week, provided that no single day exceeds 11 hours and the weekly average over a balancing period (up to two months, extendable to four by collective agreement) does not exceed 45 hours.
Turkish labor law caps the working day at 11 hours regardless of overtime arrangements. Any work arrangement that results in an employee working more than 11 hours in a single day is unlawful, even if the employee consents. Employers found violating this rule face administrative fines for each occurrence.
Overtime
Overtime is any work beyond 45 hours per week. The annual overtime limit is 270 hours per employee. Overtime requires the employee's written consent, which can be withdrawn at any time.
Overtime compensation is calculated at 1.5 times the regular hourly rate. Alternatively, the employee can choose to take 1.5 hours of compensatory time off for each hour of overtime worked. Night work (between 8:00 PM and 6:00 AM) is limited to 7.5 hours per shift, and night workers cannot work overtime.
Rest Periods and Weekly Leave
Employees are entitled to a rest break of at least one hour for work periods of 7.5 hours or more, 30 minutes for work periods of 4 to 7.5 hours. Employees must receive at least one uninterrupted rest day (24 hours) per week, typically Sunday. Working on the weekly rest day requires the employee's consent and must be compensated with an additional day off or overtime pay.
Social Security (SGK) Obligations
Registration and Contributions
Employers must register employees with the Social Security Institution (Sosyal Guvenlik Kurumu, SGK) before the employee begins work. Late registration triggers retrospective contribution liability plus penalties. The SGK system covers health insurance, retirement pensions, disability benefits, occupational accident insurance, and unemployment insurance.
| Contribution Type | Employee Rate | Employer Rate | Total |
|---|---|---|---|
| Short-term insurance (occupational risk) | 0% | 1-6.5% (sector-dependent) | 1-6.5% |
| Long-term insurance (pension, disability, death) | 9% | 11% | 20% |
| General health insurance | 5% | 7.5% | 12.5% |
| Unemployment insurance | 1% | 2% | 3% |
| Total (approximate) | 15% | 21.5-27% | 36.5-42% |
Employers who meet certain criteria (timely payment of contributions, no outstanding debts) receive a 5-percentage-point discount on their share of long-term insurance premiums, reducing the employer rate by approximately 5%.
Monthly SSI Declarations
Employers must submit monthly service declarations (Aylik Prim ve Hizmet Belgesi) to the SGK by the last day of the month following the work period. Contributions must be paid by the last day of the same month. Late declarations and payments result in administrative fines and daily interest on overdue amounts.
Workplace Registration
In addition to registering employees, employers must register their workplace with the SGK within 10 days of commencing operations or hiring the first employee. Each distinct workplace location requires a separate SGK workplace registration.
Annual Leave
Annual leave entitlements in Turkey increase with tenure:
- 1 to 5 years of service: 14 working days
- 5 to 15 years of service: 20 working days
- 15+ years of service: 26 working days
- Employees under 18 or over 50: minimum 20 working days regardless of tenure
Annual leave cannot be waived, and employers cannot pay compensation in lieu of leave during active employment. Unused leave accumulates and must be paid out at termination. Leave must be taken in continuous periods of at least 10 days, with the remainder taken in smaller blocks as agreed between employer and employee.
Employers should maintain meticulous records of leave taken and remaining balances. At termination, Turkish labor courts consistently award compensation for any unused annual leave, and the burden of proof falls entirely on the employer to demonstrate that leave was actually taken. Without signed leave request and approval records, the employer will be ordered to pay for the full accumulated leave entitlement.
Severance Pay
Severance pay (kidem tazminati) is one of the most significant financial obligations for employers in Turkey. It applies to indefinite-term employees who have completed at least one year of continuous service.
When Severance Pay Is Owed
Severance pay is owed when:
- The employer terminates the contract without just cause
- The employee resigns for a legally recognized reason (military service, marriage within one year for female employees, retirement eligibility, employer's material breach of contract)
- The employment relationship ends due to the employee's death
Severance pay is NOT owed when:
- The employer terminates for just cause (serious misconduct under Article 25 of the Labor Law)
- The employee resigns without a legally recognized reason
- A fixed-term contract expires at its natural end
Calculation
The severance pay calculation is straightforward: 30 days of gross salary for each full year of service. Partial years are calculated proportionally. The gross salary includes the base wage plus any regular, recurring benefits (food allowance, transportation allowance, etc.).
There is an annual ceiling on the per-year severance amount, which is updated every six months in line with the highest civil servant pension indicator. For 2026, the ceiling applies per year of service, meaning long-tenured employees' severance is capped at the ceiling amount multiplied by their years of service.
Severance Pay Example
An employee earning 50,000 TRY gross per month (below the ceiling) who has worked for 6 years and 8 months would receive: (50,000 x 6) + (50,000 x 8/12) = 300,000 + 33,333 = 333,333 TRY in severance pay. If the gross salary exceeds the ceiling, the ceiling amount is used instead.
Notice Periods
For indefinite-term contracts, the terminating party must provide advance notice based on the employee's tenure:
| Tenure | Notice Period |
|---|---|
| 0 to 6 months | 2 weeks |
| 6 months to 1.5 years | 4 weeks |
| 1.5 to 3 years | 6 weeks |
| 3+ years | 8 weeks |
These are minimum periods and can be extended (but not shortened) by contract. The employer may choose to pay the employee's wages for the notice period in lieu of requiring the employee to work during notice (ihbar tazminati). Failure to provide notice or payment in lieu results in liability for notice compensation equal to the wages the employee would have earned during the notice period.
During the notice period, the employee is entitled to at least two hours per day of paid time off to seek new employment.
Termination Procedures
Termination Without Just Cause
The employer may terminate an indefinite-term contract by providing the required notice period and paying severance. However, for workplaces with 30 or more employees, and for employees with at least six months of tenure, the employer must also demonstrate a valid reason for termination related to the employee's capacity, conduct, or the operational requirements of the business. This is Turkey's job security (is guvencesi) protection.
If the employee challenges the termination and the labor court finds the reason invalid, the employer must either reinstate the employee or pay additional compensation of 4 to 8 months' wages on top of severance pay.
Termination for Just Cause
Article 25 of the Labor Law permits immediate termination without notice or severance pay in cases of serious misconduct, including dishonesty at hiring, assault or harassment, substance abuse at work, breach of trust, unjustified absence exceeding two consecutive days, and refusal to follow safety instructions despite warnings. The employer must exercise this right within six working days of learning about the conduct.
Documentation Requirements
Every termination should be thoroughly documented. The termination letter must state the specific reason for termination, be delivered to the employee in person (with a signed receipt) or by registered mail, and reference any prior warnings if the termination is conduct-related. Turkish labor courts place a heavy evidentiary burden on the employer, and poorly documented terminations frequently result in reinstatement orders or additional compensation.
Work Permits for Foreign Employees
Application Process
Foreign nationals must obtain a work permit before beginning employment in Turkey. The primary route is through the employer, who applies via the Ministry of Labor and Social Security's e-Government (e-Devlet) portal. Simultaneously, the foreign employee applies for a work visa at the Turkish consulate in their country of residence.
Eligibility Requirements
The employer must demonstrate that:
- The position cannot be reasonably filled by a Turkish national
- The company employs at least five Turkish citizens for every one foreign employee (the 1:5 ratio)
- The foreign employee's salary is appropriate for the position and not below the minimum wage
- The company has been operational for at least one year (with some exceptions)
- The company's paid-in capital is at least 100,000 TRY
Permit Types and Duration
| Permit Type | Duration | Requirements |
|---|---|---|
| Standard work permit | 1 year (initial) | Standard application; renewable |
| Extended work permit | Up to 2 years | After initial 1-year permit; same employer |
| Long-term work permit | Up to 3 years | After 8 years of legal employment in Turkey |
| Independent work permit | Varies | For self-employed foreigners; 5+ years of legal residence |
| Turquoise Card | Indefinite | For highly qualified professionals, major investors |
Work permit violations carry severe penalties for both the employer and the foreign employee. Employing a foreign national without a valid work permit results in fines of approximately 16,000 TRY per worker per month, deportation of the employee, and a potential ban on future work permit applications. Always verify that the work permit is issued before the employee's first day of work.
Exemptions
Certain categories of foreign nationals are exempt from work permit requirements, including those with a long-term residence permit, spouses of Turkish citizens (after three years of marriage), holders of a Turquoise Card, and nationals of countries with specific bilateral agreements. Refugees and holders of temporary protection status may also work under separate regulatory frameworks.
Occupational Health and Safety
The Occupational Health and Safety Law (Law No. 6331) requires employers to:
- Conduct workplace risk assessments
- Appoint an occupational safety specialist and workplace physician (mandatory for all employers)
- Provide OHS training to all employees upon hiring and periodically thereafter
- Maintain accident and incident records
- Report occupational accidents to the SGK within three days
The classification of workplaces into hazard categories (low, moderate, high) determines the frequency of health examinations and the qualifications required of the occupational safety specialist. Non-compliance with OHS requirements is enforced through administrative fines and, in cases of workplace accidents resulting from negligence, criminal prosecution.
Collective Labor Relations
Unionization is a constitutional right in Turkey. Employees have the right to join trade unions, and employers cannot discriminate against union members. If a union represents more than 50% of employees at a workplace and more than 1% of workers in the relevant sector, it can request collective bargaining authority. Collective bargaining agreements can modify many default labor law provisions, including extending notice periods, increasing leave entitlements, and establishing supplementary benefits.
Foreign employers should be aware that collective bargaining agreements override individual employment contracts where they provide more favorable terms. If your business operates in a sector with active unions, seek legal counsel before making employment decisions that could trigger collective bargaining obligations.
Practical Recommendations for Foreign Employers
Use written contracts for all employees. Although not legally required for all positions, written contracts prevent disputes about terms and conditions. Have contracts reviewed by a Turkish labor lawyer.
Budget for severance from day one. Severance pay is not optional and can represent a massive financial obligation for companies with long-tenured employees. Set aside reserves equivalent to one month's salary per employee per year of service.
Maintain rigorous payroll records. Turkish labor courts default to the employee's claims when employer records are incomplete. Keep signed records of wages paid, overtime worked, leave taken, and all communications regarding employment terms.
Understand the cost of termination before hiring. Factor severance pay, notice compensation, unused leave payout, and potential reinstatement compensation into your workforce planning. The total cost of terminating a long-tenured employee in Turkey can easily exceed 12 months of salary.
Comply with the 1:5 foreign-to-Turkish employee ratio. Plan your hiring to maintain this ratio if you intend to employ foreign nationals. Falling below the ratio can result in work permit renewals being denied.
For related guidance on establishing your business entity in Turkey, see our company formation guides. For information on tax obligations, see our guide to Turkey's corporate tax framework.
Conclusion
Turkish labor law is comprehensive, employee-protective, and rigorously enforced. Foreign employers must invest time in understanding their obligations before hiring their first employee. The most significant financial exposure comes from severance pay, which accrues continuously and has no upper limit on the number of years counted. Social security contributions add approximately 22-27% to the cost of each employee beyond their gross salary.
Proper compliance requires a certified accountant for payroll and SSI filings, legal counsel for employment contracts and termination procedures, and an occupational safety specialist for workplace health and safety. These are not optional advisory services but legal requirements with real penalties for non-compliance. Employers who build these costs and structures into their operations from the beginning will find Turkey's labor market to be productive, competitive, and manageable.
Frequently Asked Questions
What is the current minimum wage in Turkey?
As of 2026, Turkey's gross minimum wage is set by the Minimum Wage Determination Commission, which convenes annually. The minimum wage applies uniformly across all sectors and regions with no differentiation. Employers must also pay social security contributions (SGK premiums) on top of the gross wage, making the total employer cost approximately 30-35% higher than the net employee wage. The minimum wage is announced each January and applies for the full calendar year.
How is severance pay calculated in Turkey?
Severance pay (kidem tazminati) is owed to employees who have worked for at least one year and whose employment is terminated by the employer without just cause, or who resign for legally recognized reasons. The calculation is 30 days of gross salary for each full year of service. There is a government-imposed annual ceiling on the per-year severance amount. Severance is calculated based on the employee's last gross salary including regular bonuses and benefits. It is one of the most significant employer obligations in Turkish labor law.
Do foreign employees need a work permit to work in Turkey?
Yes, all foreign nationals must obtain a work permit before beginning employment in Turkey. Applications are made through the Ministry of Labor and Social Security's e-Government portal. The employer must demonstrate that the position cannot be filled by a Turkish national and that the company meets specific criteria, including employing at least five Turkish citizens for every one foreign employee. Work permits are initially granted for one year and can be renewed. Turquoise Card holders and certain investment-based permit holders have more flexible arrangements.