19/09/2023

Difference between Payroll in Turkey and Payroll in China

payroll china

Payroll Turkey and Payroll China refer to two different payroll systems or processes used in Turkey and China, respectively.

These systems have distinct characteristics and requirements due to the differences in labor laws, taxation, and regulations in each country. Here are the key differences between Payroll Turkey and Payroll China:

1. Legal and Regulatory Environment:

Turkey: Payroll in Turkey is subject to Turkish labor laws and regulations. The Turkish government has specific rules governing employment contracts, minimum wage, working hours, and social security contributions.

China: Payroll in China follows Chinese labor laws and regulations, which are quite different from those in Turkey. China has its own set of employment laws, including regulations related to employment contracts, minimum wage, and social insurance contributions.

2. Employment Contracts

Turkey: Employment contracts in Turkey typically follow the Turkish Labor Law. Contracts are often written in Turkish, and they must adhere to Turkish employment regulations.

China: In China, employment contracts are typically written in Chinese and must comply with Chinese labor laws. There are specific types of contracts for different employment arrangements, such as fixed-term contracts, open-ended contracts, and part-time contracts.

3. Minimum Wage

Turkey: Turkey has its own minimum wage regulations that employers must adhere to when calculating employee salaries and benefits.

China: China also sets minimum wage levels at the provincial or municipal level, and employers must pay employees at least the minimum wage in the locality where they work.

4. Social Security and Benefits

Turkey: Turkish employees and employers are required to contribute to social security schemes, including health insurance, pension plans, and unemployment insurance.

China: China has its own social insurance system, which includes pension, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance. Both employees and employers make contributions to these funds.

5. Taxation

Turkey: Turkey has its own tax regulations, and payroll in Turkey involves withholding income tax, social security contributions, and other applicable taxes from employees’ salaries.

China: China also has its own tax system, including income tax and social insurance contributions. Employers are responsible for withholding these taxes and contributions from employees’ wages.

6. Reporting and Compliance

Turkey: Turkish companies must comply with reporting requirements set by Turkish authorities, such as the Ministry of Finance and Social Security Institution.

China: Chinese companies must adhere to reporting and compliance requirements set by various government agencies, including the tax authorities and the Social Security Bureau.

In summary, Payroll Turkey and Payroll China differ significantly due to variations in labor laws, taxation, employment contracts, and social security systems in each country. To ensure compliance with local regulations, businesses operating in Turkey and China need to implement payroll processes that align with the specific requirements of each country’s legal and regulatory framework. It’s advisable to seek expert guidance or use professional payroll services to navigate these complex systems effectively.

Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.