Turkey has many opportunities for expansion, with a population of 83 million people and strong industries sectors in agriculture, tourism, and manufacturing. There are many tax requirements for businesses in Turkey, including more than 15 required tax payments each year, and many unfamiliar taxes such as check transaction taxes, stamp duties on contracts, and advertising taxes. There are different corporate tax rates based on corporation type and distinction.
Payroll management for Turkey also includes social security filings, statutory tax and pension payments, and workforce analysis charts that must be submitted to the Turkish Work Force Agency (ISKUR). For employers with more than 5 employees, the company must provide a mandatory private pension scheme (BES).
There are a variety of funding options available for paying employees in Turkey. Using Blue Marble money movement services, you can fund payroll in USD and we settle in the local currency. If you have a local in-country bank account, you can pay employees directly, and if you do not have a local bank account you can send funds to the in-country payroll provider to pay employees. We can simplify money movement and help you manage currency conversion with our integrated money movement services.
Some labor and payroll considerations include:
- Basic job requirements must be provided to the employee in written form
- Collective Bargaining Agreements can be created at the company or industry level
- Standard work week is 45 hours, with additional hours considered “overwork”
- The minimum wage in Turkey is TRY 2,020 per month ($347 USD)
- New employees must be registered with the Social Security Institution (SSI)
- Income tax and social security are withheld from employee pay
- Employers are not obligated to provide sick pay to employees, but employees are entitled to sick pay through government disability programs. In practice, most employers continue to pay employees their full salary while they are sick and deduct the amount paid by the Social Security Institution from the employee’s salary
- Foreign workers must obtain a work and residence permit to live and work in Turkey
- Employers in Turkey are limited in the number of foreign workers they can hire
To simplify payroll and operations in Turkey, Blue Marble has created tools and technology to help companies manage the complex landscape. Our cloud-based technology is easy-to-use and has customized monthly reporting so you can view payroll in real-time across all countries and currencies. Our in-country experts can help when questions come up to ensure compliance. Get started and simplify your payroll and operations in Turkey – click here to learn more