Türkiye is often seen as a bridge between the European Union (EU) and Asia. With tax incentives for international investors, Türkiye is a great location for companies looking to expand.
However, expansions come with challenges such as setting up payroll. As a global Employer of Record (EOR), G-P can streamline payroll services in Türkiye to help you start working faster without the hassle of compliance. We’ll act as an extension of your team and handle everything from hiring employees to sourcing the right benefits.
Taxation rules in Türkiye
Employers and employees in Türkiye have to contribute social security premiums, but employers pay both portions by deducting taxes from the employee’s salary. Tax contributions include:
- Social security: Employees pay 14%, and employers pay 20.5%
- Unemployment insurance: Employees pay 1%, and employers pay 2%
Türkiye payroll options for companies
You have several Türkiye payroll options to choose from, including:
- Internal: Larger subsidiaries with a long-term commitment to Türkiye may want to set up their own internal payroll. You’ll need a large HR team with this option as well as an expert who can help with compliance.
- Payroll processing company: Using a Türkiye payroll processing company will allow you to outsource your payroll. Keep in mind that your company will still be responsible for compliance and all actions the payroll provider takes.
- G-P: The easiest way to run payroll in Türkiye and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time and compliantly, freeing you to focus on other important aspects of your business.
How to set up a payroll in Türkiye
You cannot start setting up your Türkiye payroll until you have a subsidiary in the country. A subsidiary will allow you to operate much like a resident company and let you hire employees and choose a Türkiye payroll option. That said, it can take anywhere from a few weeks to a few months to register your subsidiary. Fortunately, G-P can cut that time down to as little as a day by using our existing subsidiary.
Entitlement/termination terms
Turkish labor law includes complicated entitlement and termination terms that you should include in an employment contract before setting up your payroll. Probation periods are limited to a maximum of 2 months, during which you can terminate an employee without incurring any penalties. Termination severance packages are often steep in the country, and notice periods depend on how long the employee has worked for the company.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading global employment platform. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.