Payroll in Turkey : Outsource and HR Consultancy Services

Payroll in Turkey: We're with you every step of the way

Hire your Turkish talent quickly, compliantly, and without needing to establish a Turkish entity with Azkan Group’s Employer of Record (EOR) solution.

Maintain day-to-day control of your team while we manage payroll, benefits, risk, compliance, and ongoing employee support.

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Payroll in Turkey: We're with you every step of the way

Hire your Turkish talent quickly, compliantly, and without needing to establish a Turkish entity with Azkan Group’s Employer of Record (EOR) solution.

Maintain day-to-day control of your team while we manage payroll, benefits, risk, compliance, and ongoing employee support.

—Pngtree—turkey flag brush stroke vector 9073611
photohero1
Recommended by companies worldwide
Logo Pepsi 1
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Logo Siemens 1

Understanding payroll in Turkey

payroll services 1

Payroll in Turkey allows you to have a subsidiary with lower costs and without creating a legal structure.

In this way, you can have an employee working full time for you. This employee is recruited by us, and we take care of the signing of the contract and management of local administrative tasks.
This is the recruitment Turkey solution.

Payroll in Turkey, the main advantages :

Overview of payroll in Turkey

Our objective as the Payroll in Turkey company is to offer a solution adapted to our customers’ needs. Our teams are based locally, and are qualified to provide your requested services by adapting strategies to your needs and expectations.
They can also give you advice and information about the Turkish market, on the pros and cons of the internationalisation of your activity, as well as the best strategic choices to make.

Our success comes from our capacity to detect relevant and matching profiles, but also from our performance and personalised payroll services.

We can support you as Umbrella Company Turkey. We have our own legal entity in Istanbul which allows us to declare you as our  employee. Initially, you pay us the equivalent of the employee’s wages and taxes.

Then, Azkan Group takes care of the local declaration, payment of payroll taxes, as well as employer and salary payments. Azkan Group is recognised as a local PEO (Professional Employer Organisation) and payroll service provider in Turkey.

payroll turkey how it works

Why Payroll Services in Turkey ?

In addition to helping you with your hiring process, we can manage your payroll in Turkey on behalf of your company.

Legal requirements and compliance for payroll in Turkey

Organising your own solution in-house for payroll in Turkey would require you to create your own dedicated legal structure, which is not particularly convenient if you spend most of your time abroad, or if it means hiring additional staff simply to keep up with payroll management.
Outsourcing payroll management allows you to focus on what you do best, and gives you peace of mind.

Payroll in Turkey is regulated and follows a strict set of legal rules which may be complicated to grasp.
We make sure every aspect of your payroll process is up to scratch for your employees, and save you the effort of having to dedicate a whole branch of your company to employing Turkish staff.
That way, your accounting is simplified, and you do not need to modify your business model simply to accommodate payroll in Turkey.
Our payroll solution as an umbrella company, helps you save time and protect your investments.

Being based locally also means we can be a true relationship facilitator between yourself, your employees and the authorities by helping you to make sure everything is running smoothly at all times.
We optimise our solutions based on our clients’ individual needs and our locally based experts, always having your best interests at heart, and we strive to report to you every step of the way and to provide you with all the necessary information to make the right decisions regarding how we handle payroll in Turkey on your behalf. Regardless of the size of your company, outsourcing payroll locally is the perfect way to ensure employee satisfaction and overall efficiency.

Payroll in Turkey , just as elsewhere, requires you to have a dedicated HR department, complete with additional accountants. Having us handle this side of your business for you is an excellent way to save costs by avoiding the necessity to dedicate in-house resources, both in terms of personnel and office space.
We can take care of everything, from employee pay to tax and report filing. Our complete solution means all social, administrative and legal aspects of your activities in Turkey can be handled in the best way possible.

payroll3

Possibility to rent an office in Istanbul (serviced offices Istanbul): Azkan Group provides you offices to accommodate your employees. These premises are modern, equipped and furnished.

Support from recruitment Turkey: As a Turkey HR firm, Azkan Group detects local profiles which correspond to your criteria (complementary support to our Umbrella Company Turkey solution).

Work Permit Turkey and Residence Permit Turkey: We can also help to monitor such requests.

We can measure our success by our customers’ satisfaction.

The main factor of this success is our long-term involvement and our sense of service and partnership to our customers.

We have considerable experience in many sectors such as industry, engineering, automotive, energy etc.

Challenges businesses face when managing payroll in Turkey

Our objective as the Payroll in Turkey company is to offer a solution adapted to our customers’ needs. Our teams are based locally, and are qualified to provide your requested services by adapting strategies to your needs and expectations.
They can also give you advice and information about the Turkish market, on the pros and cons of the internationalisation of your activity, as well as the best strategic choices to make.

Our success comes from our capacity to detect relevant and matching profiles, but also from our performance and personalised payroll services.

We can support you as Umbrella Company Turkey. We have our own legal entity in Istanbul which allows us to declare you as our  employee. Initially, you pay us the equivalent of the employee’s wages and taxes.

Then, Azkan Group takes care of the local declaration, payment of payroll taxes, as well as employer and salary payments. Azkan Group is recognised as a local PEO (Professional Employer Organisation) and payroll service provider in Turkey.

payroll turkey how it works

Benefits of Outsourcing Payroll in Turkey

Outsourcing payroll in Turkey, as in many other countries, can offer several benefits for businesses. Here are some of the key advantages

Expertise and Compliance :

Payroll outsourcing providers in Turkey typically have expertise in local labor laws, tax regulations, and compliance requirements. This helps ensure that your payroll processes are accurate and in line with legal obligations, reducing the risk of penalties or fines due to non-compliance.

Time and Cost Savings:

Managing payroll in-house can be time-consuming and resource-intensive. Outsourcing payroll in Turkey allows businesses to free up valuable time and resources that can be redirected towards core business activities. Additionally, outsourcing can often be more cost-effective than hiring and training internal payroll staff, especially for small and medium-sized enterprises.

Accuracy and Efficiency:

Payroll outsourcing companies use advanced payroll software and systems to streamline processes and minimize errors. This can result in more accurate payroll calculations, timely payments to employees, and improved overall efficiency in payroll administration.

Confidentiality and Security:

Outsourcing payroll can help maintain confidentiality and data security. Reputable payroll providers in Turkey adhere to strict data protection regulations and implement robust security measures to safeguard sensitive employee information.

Scalability:

As your business grows or experiences fluctuations in workforce size, outsourcing payroll can offer scalability and flexibility to adapt to changing needs. Payroll service providers can adjust their services accordingly, accommodating changes in employee numbers, benefits, or other payroll-related factors.

Access to Technology and Innovation:

Payroll outsourcing companies often invest in the latest technology and innovations to improve their services continuously. By outsourcing payroll, businesses can benefit from access to cutting-edge payroll software, tools, and features without having to invest in them individually.

Focus on Core Competencies:

Outsourcing non-core functions like payroll allows businesses to focus on their core competencies and strategic priorities. By delegating payroll tasks to experts, businesses can concentrate on activities that drive growth, innovation, and competitiveness in the marketplace.

Reduced Administrative Burden:

Managing payroll involves various administrative tasks, such as calculating wages, deductions, and taxes, as well as preparing and distributing paychecks or direct deposits. Outsourcing payroll in Turkey transfers much of this administrative burden to external providers, freeing up internal resources for other essential tasks.

Cost-effectiveness and efficiency

Outsourcing payroll in Turkey can indeed provide cost-effectiveness and efficiency for businesses in several ways, click to discover more !

Outsourcing payroll eliminates the need to hire and train internal payroll staff, saving businesses costs associated with salaries, benefits, office space, equipment, and other overhead expenses. This is particularly beneficial for small and medium-sized enterprises (SMEs) with limited resources.

Payroll processing involves various tasks, including calculating wages, deductions, and taxes, as well as preparing reports and distributing payments. Outsourcing payroll in Turkey frees up valuable time for business owners and HR personnel, allowing them to focus on more strategic activities that drive growth and innovation.

Payroll outsourcing providers in Turkey have specialized knowledge of local labor laws, tax regulations, and compliance requirements. By leveraging their expertise, businesses can ensure accurate and compliant payroll processing, reducing the risk of errors, penalties, or fines due to non-compliance.

Outsourcing payroll services in Turkey can offer scalability and flexibility to accommodate changes in workforce size or business needs. Whether a business is expanding, downsizing, or experiencing seasonal fluctuations, outsourcing providers can adjust their services accordingly, providing cost-effective solutions that align with changing requirements.

Payroll outsourcing companies in Turkey typically invest in advanced payroll software and systems to streamline processes and improve efficiency. By outsourcing payroll, businesses can leverage cutting-edge technology without the need for significant upfront investment or ongoing maintenance costs.

Outsourcing payroll can help mitigate the risk of errors, fraud, or security breaches. Reputable payroll providers implement robust security measures and protocols to safeguard sensitive employee information, reducing the risk of data breaches or unauthorized access.

Payroll outsourcing companies in Turkey often provide comprehensive reporting capabilities, consolidating payroll data into easy-to-understand reports. This allows businesses to gain insights into their payroll expenses, track trends over time, and make informed decisions to optimize their financial management strategies.

Many payroll outsourcing providers offer additional support services, such as employee self-service portals, HR consulting, tax advisory, and regulatory compliance assistance. These value-added services can enhance efficiency, improve employee satisfaction, and further optimize payroll processes.

Overall, outsourcing payroll in Turkey can offer businesses cost-effectiveness and efficiency by reducing overhead costs, saving time, ensuring compliance, providing scalability and flexibility, leveraging technology, mitigating risks, offering consolidated reporting, and providing valuable support services.

Reduced compliance risks

Outsourcing payroll in Turkey can help reduce compliance risks for businesses in several ways, click to discover them !

Payroll outsourcing providers in Turkey have specialized knowledge of local labor laws, tax regulations, and compliance requirements. They stay updated on changes in legislation and ensure that payroll processes are in line with legal obligations, reducing the risk of non-compliance.

Payroll outsourcing companies utilize advanced payroll software and systems to automate calculations and ensure accuracy in wage calculations, deductions, taxes, and other payroll-related calculations. This reduces the risk of errors that could lead to compliance issues or penalties.

Payroll outsourcing providers in Turkey handle timely filings and payments of payroll taxes, social security contributions, and other statutory obligations on behalf of businesses. By ensuring compliance with filing deadlines, businesses avoid penalties and fines for late or incorrect submissions.

Payroll outsourcing companies assist businesses in fulfilling reporting requirements mandated by Turkish authorities. They generate and submit payroll-related reports accurately and promptly, reducing the risk of penalties for non-compliance with reporting obligations.

Reputable payroll outsourcing providers conduct regular audits and reviews of payroll processes to identify potential compliance issues or discrepancies. By proactively addressing any issues that arise, businesses can mitigate the risk of non-compliance and ensure that payroll operations adhere to regulatory standards.

Payroll outsourcing companies implement robust data security measures to protect sensitive employee information from unauthorized access, fraud, or data breaches. Compliance with data protection regulations enhances trust and reduces the risk of legal consequences associated with data privacy violations.

Payroll outsourcing providers help businesses maintain accurate records and documentation related to payroll transactions, employee wages, tax withholdings, and other relevant information. Comprehensive record-keeping facilitates compliance with record retention requirements and facilitates audits or inquiries from regulatory authorities.

Payroll outsourcing companies may offer legal support and guidance to businesses on complex compliance issues, interpretations of labor laws, or regulatory inquiries. Access to expert advice helps businesses navigate compliance challenges effectively and minimize the risk of legal disputes or penalties.

Access to local expertise

Since 2005, AZKAN Group consulting company has a team of local experts and regular speakers who offer Payroll Services in Turkey.

—Pngtree—turkey flag brush stroke vector 9073611

Our Payroll Services in Turkey

Our services include : 

Companies benefiting from your services

Wage Calculation :

Accurately calculating employee wages based on hours worked, salaries, bonuses, commissions, or other compensation structures.

Deductions and Withholdings:

Calculating and deducting income tax, social security contributions, health insurance premiums, and other mandatory deductions from employee wages.

Statutory Reporting:

Generating and submitting payroll-related reports to Turkish authorities, such as tax filings, social security declarations, and other regulatory documentation.

Payment Processing:

Facilitating timely and accurate payments to employees via bank transfers, checks, or electronic payment methods.

Compliance Management:

Ensuring compliance with Turkish labor laws, tax regulations, social security requirements, and other statutory obligations related to payroll administration.

Record-keeping:

Maintaining comprehensive records of payroll transactions, employee earnings, tax withholdings, and other relevant information for auditing and regulatory purposes.

Employee Self-Service:

Providing online portals or tools that allow employees to access their payroll information, view payslips, update personal details, and submit time-off requests.

Tax Advisory:

Offering guidance and support on tax matters, including tax planning, optimization strategies, and assistance with inquiries or audits from tax authorities.

Descriptions of the services we offer

Our payroll services encompass comprehensive wage calculation, deductions management, and compliance reporting. Providers accurately calculate employee wages, including bonuses and commissions, while ensuring adherence to tax regulations, social security contributions, and other statutory deductions. These services facilitate timely payment processing through various channels, along with detailed record-keeping for auditing and regulatory purposes. Additionally, payroll providers offer expert guidance on Turkish labor laws, tax obligations, and social security requirements, ensuring businesses remain compliant and efficient in managing their workforce. Employee self-service portals may also be provided, allowing personnel to access payslips, update personal information, and submit leave requests seamlessly.

Some clients testimonials

5/5

“Efficient, reliable, and professional – that’s how I would describe Azkan Group’s payroll services in Turkey. Their team goes above and beyond to meet our payroll needs, ensuring accuracy, compliance, and timely payments every time. With their support, we’ve streamlined our payroll processes and gained confidence in our compliance with Turkish labor laws and tax regulations. Thank you for your excellent service!”

5/5

“Choosing Azkan Group for our payroll needs in Turkey has been a game-changer for our business. Their comprehensive services and personalized support have exceeded our expectations. From wage calculations to tax filings, they handle it all with precision and efficiency. We’re impressed by their dedication to ensuring compliance and providing top-notch customer service.”

5/5

“Outsourcing our payroll to Azkan Group was one of the best decisions we made for our business in Turkey. Their team’s expertise and attention to detail have ensured accurate payroll processing and compliance with local regulations. We’ve saved valuable time and resources, allowing us to focus on growing our business. Highly recommend their services!”

5/5

“Thanks to Azkan Group’s payroll services, we’ve experienced seamless payroll processing and compliance in Turkey. Their knowledgeable team consistently delivers accurate calculations and timely payments, alleviating our administrative burden and reducing compliance risks. Their professionalism and commitment to customer satisfaction are truly commendable.”

How We Ensure Accuracy and Compliance

Ensuring accuracy and compliance in payroll for Turkey requires a thorough understanding of local labor laws, tax regulations, and social security requirements. Here’s how we achieve it:

Our team stays updated on Turkish payroll legislation and undergoes regular training to ensure expertise in compliance matters.

We utilize advanced payroll software to automate calculations, minimizing errors and ensuring accurate wage calculations, tax withholdings, and deductions.

Our process includes rigorous double-checking of payroll data and calculations to identify and rectify any discrepancies before finalizing payments.

Regular compliance reviews are conducted to ensure adherence to Turkish labor laws, tax regulations, and social security obligations.

We maintain detailed records of payroll transactions, tax filings, and compliance documentation, facilitating audits and regulatory inquiries.

We continuously monitor regulatory changes and update our processes accordingly to maintain compliance and accuracy in payroll processing for our clients.

Respect for Turkish labor law

Respecting Turkish labor law in payroll processing is paramount to our operations. We ensure compliance by adhering to regulations regarding minimum wage, overtime pay, and employee benefits. Our team meticulously calculates taxes, social security contributions, and other statutory deductions in accordance with legal requirements. We prioritize transparency and fairness in wage distribution and maintain thorough documentation to support compliance with labor laws. By staying updated on legislative changes and collaborating with legal experts, we guarantee that our payroll practices align with Turkish labor regulations, fostering trust and integrity in our services.

If your employee is not a Turkish national, we can support him in his work permit request.

2024 Payroll in Turkey Parameters​

Respecting Turkish labor law in payroll processing is paramount to our operations. We ensure compliance by adhering to regulations regarding minimum wage, overtime pay, and employee benefits. Our team meticulously calculates taxes, social security contributions, and other statutory deductions in accordance with legal requirements. We prioritize transparency and fairness in wage distribution and maintain thorough documentation to support compliance with labor laws. By staying updated on legislative changes and collaborating with legal experts, we guarantee that our payroll practices align with Turkish labor regulations, fostering trust and integrity in our services.

If your employee is not a Turkish national, we can support him in his work permit request.

Social Security Premium: Social Security Premium is computed monthly on wages and is jointly funded by both the employee and the employer. The contribution rates are as follows

Employee Employer
SSI Premium
14%
20.5%
SSI Unemployment Premium
1%
2%
Total
15%
22.5%
Discount
5%
Total - With the DIscout
15%
17.5%

As of January 1st, 2024, the social security ceiling is set at 150,018.90 TRY, updated yearly based on changes in the minimum wage (7.5 times the minimum wage).

SSI Base and Ceiling:

Period Monthly SSI Base Monthly SSI Base Ceiling
2024
20,002.50-TRY
150,018.90-TRY

The income tax brackets applicable for the salary income in the 2024 tax year are as follows:

Minimum Maximum Rate
0
110,000.00
15%
110,000.01
230,000.00
20%
230,000.01
870,000.00
27%
870,000.01
3,000,000.00
35%
3,000,000.01 and more
40%

2024 Income Tax Exemption: The income tax exemption, equivalent to the calculated amount over the minimum wage, will continue in 2024.

Liability for Stamp Tax: Stamp tax, applied to employment income through the payroll, has a rate of 0.759 percent as of January 1, 2015. The stamp tax base is the total gross earnings on the payroll, and the tax is calculated based on that total.

The stamp duty exemption for all wages introduced in 2023 up to the minimum wage level will persist in 2024.

2024 Minimum Wage Tax Exemptions: The increase in the minimum wage from January 1, 2024, affects the exemption amounts for each month.

Period Income Tax Exemption Stamp Tax Exemption
January
2,550.32
151.82
February
2,550.32
151.82
March
2,550.32
151.82
...
...
...

2023 Minimum Wage Sample Calculation as of January 1st, 2024:

Minimum Wage Employer Cost Calculation Sample as of January 1st, 2024:

Sample Calculation – 2 as of January 1st, 2024:

If you have any questions or need more information, please reach out to your customer representative.