Economic Overview, Transcontinental Tech Hub & Mobile Gaming Unicorns
Türkiye is Europe's premier mobile gaming capital (Peak Games, Dream Games) and a global aerospace defense innovator (Baykar drones).
Key Economic Clusters
- Mobile Gaming & SaaS Unicorns (Istanbul): World-leading mobile puzzle games, e-commerce marketplaces, and fintech platforms.
- Aerospace & Defense Electronics (Ankara): Autonomous unmanned aerial vehicles (Baykar), avionics, and radar systems.
- Automotive & Industrial Manufacturing: Major European vehicle assembly (Ford Otosan, Toyota, Renault) in Bursa and Kocaeli.
Employment Contracts, Labour Law No. 4857 & Probation
Regulated by the Turkish Labour Law (İş Kanunu No. 4857).
- Written Contracts: Mandatory in Turkish for employment lasting 1 year or more.
- Probation Period (*Deneme Süresi*): Maximum statutory probation is 2 months (extendable up to 4 months under collective agreements).
Working Hours, Overtime Multipliers (1.5×) & Rest Periods
- Standard Hours: 45 hours per week (typically 9 hours/day over 5 days under Article 63 of the Labour Law).
- Overtime Surcharges (Article 41): Minimum 150% (50% premium) of regular hourly rate, or compensated with 1.5 hours of paid time off per overtime hour (capped at 270 overtime hours per year).
Annual Vacation (14 to 26 Working Days) & Maternity
Annual Vacation (Article 53)
- 1 to 5 Years Service: Minimum 14 working days paid vacation.
- 5 to 15 Years Service: Minimum 20 working days paid vacation.
- 15+ Years Service: Minimum 26 working days paid vacation (employees aged 50+ or <= 18 receive at least 20 days).
- Public Holidays: ~15.5 official national and religious public holidays.
- Maternity Leave: 16 weeks (112 calendar days) paid via SGK. Paternity leave is 5 paid days.
Social Security (SGK ~17.5%–22.5% Er), Kıdem Severance & GİB Tax
| Statutory Scheme | Employer Share | Employee Share | Description |
|---|---|---|---|
| Social Security Institution (SGK) | 20.50% (15.50% net discount) | 14.00% | Pensions, universal healthcare & disability (capped at 7.5x minimum wage) |
| Unemployment Insurance | 2.00% | 1.00% | National unemployment protection fund |
| Total Statutory Contributions | ~17.50%–22.50% | 15.00% | Declared monthly via Muhtasar and Prim Hizmet Beyannamesi |
Personal Income Tax: Progressive brackets: 15% (up to TRY 110k), 20% (TRY 110k–230k), 27% (TRY 230k–870k), 35% (TRY 870k–3.0M), and 40% on excess over TRY 3.0M/yr (with minimum wage portion exempt from tax), remitted to GİB.
Termination, Severance Pay (*Kıdem Tazminatı*) & Notice Scales
Mandatory Severance Pay (*Kıdem Tazminatı*)
Under Turkish Labour Law, employees with at least 1 year of continuous service are entitled to statutory severance pay equal to 30 days' gross wage for each year of service (subject to the bi-annual statutory ceiling, approx. TRY 35,058/year of service) upon dismissal without just cause or retirement.
- Notice Periods: 2 weeks (< 6 mo service), 4 weeks (6–18 mo), 6 weeks (1.5–3 yrs), and 8 weeks (for 3+ yrs service).
Why Use an Employer of Record (EOR) in Türkiye
- Deploy Elite Turkish Developers Fast: Onboard mobile game developers, AI engineers, and sales leaders in Istanbul or Ankara in days.
- SGK, Kıdem & GİB Automated Compliance: Seamless submission of monthly Muhtasar social declarations and accurate severance calculations.
Hiring in Turkey? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:
