Employing staff in Turkey requires companies to navigate a combination of Turkish employment law, payroll regulations, social security obligations and HR documentation requirements.
For international companies in particular, compliance goes far beyond calculating a monthly salary. Employers must correctly determine employee seniority, identify which benefits form part of compensation calculations, apply the appropriate social security contribution rates, manage wage garnishments, maintain personnel files and understand the specific rules applicable to retired employees.
These requirements can become particularly important when an employment relationship ends. The employee’s total length of service, periods of unpaid leave, regular benefits, previous employment periods and other factors can directly affect statutory employment entitlements.
This guide provides international employers with a detailed overview of some of the most important employment, payroll and social security rules in Turkey.
How Is Employee Seniority Calculated Under Turkish Employment Law?
Employee seniority, or kıdem, plays an important role in several areas of Turkish employment law.
An employee’s seniority cannot always be determined simply by subtracting the employment start date from the termination date.
Certain periods during the employment relationship are considered part of the employee’s length of service, while other periods may need to be excluded.
For HR and payroll teams, accurately determining seniority is particularly important when calculating statutory employment rights.
Which Periods Count Towards Employee Seniority in Turkey?
According to Turkish labor law principles and Court of Cassation case law, several periods can be included when calculating an employee’s total seniority.
Previous Employment Periods With the Same Employer
Periods during which an employee worked for the same employer at one or more workplaces may potentially be combined when determining total seniority.
This can apply even where employment was interrupted between different periods.
However, the circumstances under which the previous employment relationship ended must be considered. Previous service periods are not automatically added together in every situation.
In particular, whether the previous termination occurred in circumstances giving rise to the relevant statutory entitlement may affect the treatment of the earlier service period.
For employers with several establishments in Turkey, this means that an employee’s history with the entire employer should be reviewed rather than looking exclusively at the employee’s current workplace.
Weekly Rest Days
Statutory weekly rest days are generally included when calculating an employee’s seniority.
The employee does not lose seniority simply because no work was performed on the weekly rest day.
National and Public Holidays
National holidays and general public holidays occurring during the employment relationship are also counted as part of the employee’s service period.
Statutory Paid Maternity Leave
The statutory paid leave periods granted to female employees before and after childbirth are included when determining seniority.
Employers should therefore avoid deducting statutory maternity leave from the employee’s length of service merely because the employee was temporarily absent from work.
Sick Leave and Accident-Related Absence
Periods during which an employee is absent because of an accident or illness and is covered by a medical report can also be relevant to the seniority calculation.
The precise legal treatment may depend on the duration and circumstances of the absence, so longer periods of medical leave should be assessed carefully.
Certain Military and Mandatory Public Service Periods
Certain periods spent under arms outside ordinary active military service, as well as periods of mandatory public service, may be included for seniority purposes, subject to the applicable legal limitations.
The relevant period may be taken into account for up to 90 days in the circumstances recognized by law.
Temporary Interruption Due to Force Majeure
Where an employee is temporarily unable to work because of a compelling or force majeure event affecting the workplace, up to 15 days may be taken into consideration, provided that the employee subsequently returns to work.
Meetings Related to Employment Legislation or Trade Union Representation
Time spent participating in certain meetings connected with employment legislation or activities performed as a trade union representative may also be included in the employee’s service period.
Periods Considered Working Time Under Article 66
Article 66 of Turkish Labour Law No. 4857 identifies circumstances that are legally treated as working time even when the employee is not actively performing their normal duties.
Where applicable, these periods should also be considered when determining employment-related rights.
The treatment of these periods has been addressed by the 7th Civil Chamber of the Turkish Court of Cassation, File No. 2015/38005, Decision No. 2016/3033.
Which Periods Do Not Count Towards Seniority?
Not every period between the employee’s formal start and termination dates necessarily counts towards statutory seniority.
Certain interruptions may be excluded.
Unauthorized Absence
Periods during which an employee is absent from work without permission and without a valid excuse may be excluded from the seniority calculation.
Detention and Imprisonment
Periods spent in detention or imprisonment may not be counted as active seniority for the relevant calculation.
Strikes and Lockouts
Periods during which the employment relationship is interrupted because of a strike or lockout may also be excluded.
Unpaid Leave
One of the most important situations for employers is unpaid leave.
During unpaid leave, the employment contract generally remains in existence but is suspended. Such suspended periods may therefore need to be excluded when calculating the employee’s relevant seniority.
This can produce a difference between the employee’s apparent calendar seniority and their seniority for a particular statutory calculation.
Why the Employee’s SGK Service Record Matters
An employee may appear to have completed a certain number of years based on their employment start date while still having periods that must be excluded from the seniority calculation.
Employers should therefore consider reviewing the employee’s SGK service record (hizmet dökümü) together with the reasons for any missing contribution days.
This is particularly useful where the employee has had:
- Unpaid leave;
- Long absences;
- Suspended employment periods;
- Previous employment periods with the same employer;
- Irregular SGK contribution records.
A correct seniority calculation should reflect the employee’s actual employment history rather than relying solely on the dates appearing on the current employment contract.
Which Payments Are Included in Statutory Compensation Calculations?
Another important issue under Turkish employment law is determining the employee’s relevant remuneration.
For certain statutory calculations, employers must consider a broader concept of remuneration than the employee’s basic monthly salary alone.
Depending on their nature and regularity, payments and benefits that may need to be considered include:
- Basic gross salary;
- Bonuses;
- Regular incentive payments;
- Heating or fuel allowances;
- Clothing allowances;
- Housing and utility allowances;
- Transportation or shuttle benefits;
- Meal allowances;
- Private health insurance contributions;
- Life insurance benefits.
The underlying principle is that regular benefits with a measurable monetary value may form part of the employee’s broader remuneration package.
Are Sales Commissions Included?
Variable compensation requires particular attention.
A sales commission may fluctuate from month to month depending on sales performance, revenue, targets or other measurable business results.
The fact that the amount varies does not automatically mean that it should be excluded from the broader remuneration concept.
Where commissions are a regular component of the employee’s remuneration, they may need to be considered when determining the applicable compensation basis.
International employers operating commission plans in Turkey should therefore clearly document the structure, frequency and calculation method of variable compensation.
Are Meals and Transportation Provided by the Employer Included?
The employee does not necessarily have to receive a cash payment for a benefit to have a monetary value.
For example, a company may provide employees with:
- Free workplace meals;
- A company cafeteria;
- Employee shuttle transportation;
- Other recurring benefits in kind.
Even if employees do not directly pay for these services, the benefit can still be measured in monetary terms.
Its value may therefore need to be determined and incorporated into the relevant remuneration calculation where required.
This approach has been addressed by the 7th Civil Chamber of the Turkish Court of Cassation in File No. 2015/6012, Decision No. 2016/5580.
For employers, this illustrates why statutory compensation calculations should not automatically be based on the employee’s payroll base salary alone.
Can Employment Compensation Be Garnished in Turkey?
Employers may receive enforcement orders relating to an employee’s debts.
It is important to distinguish between a standard salary garnishment and an attachment notice covering other receivables.
Turkish Court of Cassation case law has distinguished severance and notice compensation from ordinary salary.
The 12th Civil Chamber of the Court of Cassation, File No. 2004/22540, Decision No. 2004/26972, held that severance and notice compensation are not ordinary wages for this purpose and may therefore be subject to attachment in full under the applicable enforcement rules.
This distinction can have significant consequences when an employee leaves the company while enforcement proceedings are pending.
What Happens When an Employer Receives an Article 89/1 Attachment Notice?
An employer may receive an attachment notice under Article 89/1 of the Turkish Enforcement and Bankruptcy Law.
Where such a notice has been properly served and the employee subsequently becomes entitled to severance or notice compensation, the employer may be required to deduct the relevant amount from the employee’s receivable, up to the amount of the debt, and transfer it to the competent enforcement office.
Employers should therefore review the exact type of enforcement notice received rather than treating every document from an enforcement office as an ordinary salary garnishment.
How Much of an Employee’s Salary Can Be Garnished?
Ordinary wage income benefits from specific protection under Turkish employment law.
As a general rule, more than one quarter (1/4) of an employee’s monthly wage cannot be attached, transferred or assigned.
However, special rules apply in certain circumstances, particularly regarding amounts determined for family members whom the employee is legally required to support.
Rights relating to maintenance and alimony claims are also treated separately.
These principles are reflected in Article 35 of Turkish Labour Law No. 4857.
What Should an Employer Do After Receiving a Salary Garnishment Notice?
When an employer receives a salary garnishment notice from an enforcement office, the document should be handled promptly.
The date on which the notice was received should be recorded, as the employer may have a limited period in which to respond.
In practice, employers should carefully distinguish between:
- Salary and wage receivables;
- Severance-related receivables;
- Notice compensation;
- Other employee receivables.
Where the employee leaves the company while garnishment deductions are ongoing, the relevant enforcement offices should be informed of the employee’s departure.
The employer may need to provide evidence of termination, such as the employee’s SGK termination notification.
What Happens If an Employee Has Several Garnishments?
If several enforceable garnishment orders exist against the same employee, they are generally placed in an order of priority.
The employer does not simply deduct amounts simultaneously for every enforcement file.
Generally, the deduction for the first garnishment in the applicable order must be completed before deductions begin for the subsequent file.
Payroll teams should therefore maintain accurate records of:
- Enforcement office details;
- File numbers;
- Amounts outstanding;
- Priority order;
- Monthly deductions;
- Employee termination status.
Incorrectly processing a garnishment can expose the employer to legal and financial risks.
Can Retired Employees Continue Working in Turkey?
Yes. Employees who have retired may continue working in Turkey.
Retirement does not automatically remove all employment rights.
A retired employee who continues working can remain entitled to important protections and statutory rights, including certain severance and notice-related rights where the applicable conditions are satisfied.
Retired employees also continue to benefit from occupational accident and occupational disease protections.
However, their social security position differs from that of an ordinary active employee.
Are Retired Employees Entitled to Unemployment Benefits?
As a general rule, retired employees who continue working do not benefit from unemployment benefits in the same manner as ordinary employees.
Their employment is subject to a specific social security regime, generally involving the Social Security Support Contribution (Sosyal Güvenlik Destek Primi – SGDP).
This distinction should be correctly reflected in payroll.
Do Retired Employees Receive Temporary Incapacity Payments for Ordinary Illness?
Retired employees working under the SGDP regime are treated differently for certain social security benefits.
While occupational accidents and occupational diseases remain covered under the applicable rules, retired employees generally do not receive the same temporary incapacity benefit for an ordinary sickness report as employees covered by the standard social insurance regime.
This distinction is important for HR departments when an employee submits a medical report.
How Is Annual Leave Calculated for Retired Employees?
Where an employee retires and subsequently continues working at the same workplace, previous service may remain relevant when calculating annual leave entitlement.
Employers should therefore not automatically reset annual leave seniority to zero simply because an employee formally retired before continuing to work.
The employee’s complete employment history should be examined before determining their annual leave entitlement.
What Is the Limitation Period for Employment Compensation Claims?
The limitation period applicable to employment-related compensation has changed over time.
Historically, many claims concerning severance compensation were subject to a 10-year limitation period under the applicable provisions of the Turkish Code of Obligations.
Following a legislative change effective from 25 October 2017, the relevant limitation period was reduced to five years.
Accordingly, the applicable period depends on when the employment contract ended.
For employment contracts terminated before 25 October 2017, historical transitional rules concerning the previous 10-year period must be considered.
For employment contracts terminated after 25 October 2017, the applicable limitation period is generally five years.
Because transitional limitation rules can be legally complex, older employment claims should be assessed individually.
Social Security Contributions for Employees Under 4/A
Employees working under an employment contract are generally insured under the 4/A social security regime, historically referred to as SSK.
Based on the rates provided, the principal contribution categories can be summarized as follows:
| Social Security Branch | Employer Share | Employee Share | Total |
|---|---|---|---|
| Disability, old-age and survivors insurance | 11% | 9% | 20% |
| Short-term insurance branches | 2.25% | 0% | 2.25% |
| General health insurance | 7.5% | 5% | 12.5% |
| Unemployment insurance | 2% | 1% | 3% |
| Total | 22.75% | 15% | 37.75% |
The short-term insurance contribution rate increased from 2% to 2.25% as of 1 September 2024.
Employers should note that statutory incentives or special circumstances can affect the employer’s effective contribution cost, so payroll calculations should always use the rules applicable to the relevant period.
Social Security Contributions for Retired Employees Under SGDP
Retired employees continuing to work under 4/A may be subject to the Social Security Support Contribution (SGDP) regime.
Based on the applicable structure provided:
| Contribution | Employer Share | Employee Share | Total |
|---|---|---|---|
| Social Security Support Contribution | 22.5% | 7.5% | 30% |
| Short-term insurance branches | 2.25% | 0% | 2.25% |
| Total | 24.75% | 7.5% | 32.25% |
The distinction between an ordinary 4/A employee and a retired employee working under SGDP must therefore be correctly reflected in Turkish payroll.
Social Security Contribution Rates for 4/B – Bağ-Kur
Self-employed individuals and certain company owners may fall under the 4/B social security regime, traditionally known as Bağ-Kur.
The contribution structure provided is:
| Social Security Branch | Insured Person’s Share |
|---|---|
| Disability, old-age and survivors insurance | 20% |
| Short-term insurance branches | 2.25% |
| General health insurance | 12.5% |
| Total | 34.75% |
The insured person is responsible for the relevant contributions under the 4/B regime rather than contributions being divided between an employee and employer in the same way as 4/A employment.
Voluntary 4/B Insurance Contributions
Individuals covered by voluntary insurance may be subject to a different contribution structure.
Based on the rates provided:
| Social Security Branch | Insured Person’s Share |
|---|---|
| Disability, old-age and survivors insurance | 20% |
| General health insurance | 12% |
| Total | 32% |
These distinctions illustrate why determining the individual’s correct social security status is essential before calculating contributions.
Who Is Considered an Employee Under Turkish Labour Law?
Article 2 of Turkish Labour Law provides fundamental definitions that determine the scope of employment obligations.
An employee (işçi) is a natural person who performs work on the basis of an employment contract.
This definition is important because Turkish employment protections attach to the existence of an employment relationship rather than simply the title given to the individual by the company.
Companies engaging personnel in Turkey should therefore ensure that the contractual classification reflects the actual working relationship.
Who Is Considered an Employer?
An employer (işveren) may be a natural person, legal entity or an institution or organization without separate legal personality that employs workers.
The employer is responsible for complying with the statutory obligations arising from the employment relationship.
For foreign companies entering Turkey, identifying the legal employer is particularly important for matters such as:
- Employment contracts;
- Payroll;
- SGK registration;
- Tax withholding;
- Occupational health and safety;
- Employee files;
- Termination procedures.
Where a foreign company does not have an appropriate local employing entity, an Employer of Record (EOR) arrangement in Turkey may provide an alternative structure for legally employing personnel.
Who Is an Employer Representative?
Turkish employment law also recognizes the concept of an employer representative (işveren vekili).
An employer representative is a person who acts on behalf of the employer and participates in the management of the work, workplace or enterprise.
Holding this status does not automatically eliminate employment rights and obligations granted to that individual as an employee.
The distinction is particularly relevant for senior managers and executives who simultaneously exercise authority on behalf of the employer while remaining employees.
Who Is Considered Insured Under Turkish Social Security Law?
Under Law No. 5510 on Social Insurance and General Health Insurance, an insured person is broadly an individual for whom social security contributions must be paid or an individual required to pay contributions on their own behalf.
Depending on their status, individuals may therefore fall within different Turkish social security categories, including:
- 4/A employees;
- 4/B self-employed individuals;
- Public-sector insured persons under the relevant regime.
Correct classification determines both contribution obligations and access to social security benefits.
What Is a Workplace Under Turkish Employment Law?
The legal concept of a workplace (işyeri) is broader than a single office, factory or physical location.
Under Article 2 of the Labour Law, a workplace is essentially the unit in which the employer organizes employees together with tangible and intangible elements for the production of goods or services.
This definition can include more than the principal location where employees perform their everyday work.
Which Areas Are Considered Part of the Workplace?
Areas connected with the employer’s principal workplace and organized under the same management may also be considered part of the workplace.
Depending on the circumstances, this can include:
- Connected operational areas;
- Rest areas;
- Breastfeeding facilities;
- Dining areas;
- Sleeping facilities;
- Washing facilities;
- Medical examination and care areas;
- Physical and vocational training facilities;
- Courtyards;
- Vehicles used as part of workplace operations.
This broader definition is particularly important when determining whether an event qualifies as an occupational accident.
Employers should therefore avoid assuming that occupational accident exposure is limited strictly to the employee’s desk or principal production area.
Is an Employee Personnel File Mandatory in Turkey?
Yes. Maintaining an employee personnel file (personel özlük dosyası) is an important statutory HR obligation for employers in Turkey.
Under Article 75 of Turkish Labour Law No. 4857, the employer must maintain a personnel file for each employee.
The employer must retain the employee’s identity information together with the documents and records that must be prepared under the Labour Law and other applicable legislation.
These records must also be available for inspection by competent public authorities where legally required.
Failure to maintain the required personnel documentation may expose the employer to an administrative fine, the amount of which may be updated periodically.
For international companies, maintaining compliant employee files is therefore an important part of HR administration in Turkey.
Which Documents Should Be Included in an Employee Personnel File?
The documents required or appropriate for an employee personnel file can depend on the employee’s position, workplace risk category and applicable legislation.
A typical onboarding file may include:
- SGK employment commencement declaration;
- Employment contract;
- Military status documentation for male employees where relevant;
- Employee photographs where legitimately required;
- Criminal record documentation where legally appropriate for the position;
- Diploma or education documentation;
- Occupational health or medical documentation where required;
- Residence documentation where applicable;
- Civil registry documentation where required;
- Identity documentation;
- Blood group information where legitimately required for occupational purposes;
- Occupational Health and Safety (OHS) documentation.
Employers should not interpret such a list as permission to collect personal information indiscriminately.
The documents collected should have an appropriate employment, statutory or occupational purpose.
Employee Data Confidentiality and Personnel Files
Article 75 also imposes responsibilities on employers concerning employee information.
Employers must use information obtained about employees lawfully and in accordance with principles of good faith.
Information in which the employee has a legitimate confidentiality interest must not be improperly disclosed.
In practice, personnel file management must therefore be considered together with Turkey’s broader personal data protection requirements.
Access to employee records should be limited to authorized personnel, and companies should establish appropriate procedures for the storage, use and disclosure of HR documentation.
For international groups, this is particularly relevant where Turkish employee data is accessible from headquarters or transferred between group companies.
Payroll Compliance in Turkey: Why These Rules Matter for Foreign Employers
For an international company, Turkish payroll compliance involves considerably more than calculating gross-to-net salary.
A compliant employment structure may require the company to manage:
- Employment contracts;
- Employee classification;
- SGK registration;
- Monthly payroll;
- Social security contributions;
- Income tax and payroll deductions;
- Benefits in cash and in kind;
- Employee seniority;
- Paid and unpaid leave;
- Retired employee payroll;
- Wage garnishments;
- Occupational health and safety;
- Personnel files;
- Employee termination;
- Statutory compensation.
Each of these areas can interact with the others.
For example, an unpaid leave period can affect an employee’s service calculation. A recurring meal or transportation benefit can affect the remuneration basis used for certain statutory payments. Retirement can change the employee’s social security contribution structure without necessarily ending their employment rights.
This is why payroll and HR administration in Turkey should be approached as an integrated compliance process.
Common Payroll and HR Compliance Risks in Turkey
International employers should pay particular attention to situations where payroll data and employment-law information do not match.
An employee’s salary may be correctly calculated each month while their employment documentation remains incomplete. Similarly, an HR department may have the correct employment start date but overlook periods that should be excluded when calculating statutory seniority.
Common areas requiring careful review include:
- Incorrect SGK classification;
- Missing personnel documents;
- Failure to account for unpaid leave;
- Incorrect treatment of recurring benefits;
- Improper processing of garnishments;
- Incorrect social security treatment of retired employees;
- Incomplete termination calculations;
- Failure to recognize previous service with the same employer;
- Incorrect employee or independent-contractor classification.
A strong payroll process should therefore combine legal, HR, payroll and social security information.
Employer of Record and Payroll Services in Turkey
Foreign companies do not always have the internal resources or local legal infrastructure required to manage all these obligations.
A local payroll provider can assist companies that already have a Turkish entity by handling areas such as:
- Monthly payroll calculations;
- SGK administration;
- Employee onboarding and offboarding;
- Statutory deductions;
- Benefits administration;
- Termination calculations;
- Payroll reporting.
For companies without a local employing entity, an Employer of Record in Turkey can provide a structure through which employees can be legally employed locally while working for the international client’s business.
The EOR acts as the local legal employer and manages employment administration while the client generally retains responsibility for the employee’s day-to-day operational activities, subject to the contractual arrangement.
How Azkan Group Supports International Employers in Turkey
Managing employees in Turkey requires a combination of local employment-law knowledge, payroll expertise and familiarity with SGK procedures.
Azkan Group supports international companies with Employer of Record, payroll and HR administration services in Turkey.
Depending on the client’s requirements, support can include employee onboarding, payroll calculations, social security administration, HR documentation, benefits management and employee termination processes.
For companies entering the Turkish market, this can provide a practical way to manage local employment obligations without requiring the international HR team to independently navigate every aspect of Turkish payroll and employment administration.
For companies already established in Turkey, outsourced payroll and HR support can also help ensure that local processes remain aligned with changes in employment and social security requirements.
Frequently Asked Questions About Employment and Payroll in Turkey
Does unpaid leave count towards employee seniority?
Periods of unpaid leave generally involve suspension of the employment contract and may need to be excluded when calculating certain seniority-based employment rights.
Do public holidays count towards seniority?
Yes. Weekly rest days, national holidays and general public holidays occurring during the employment relationship are generally included in the employee’s service period.
Does maternity leave count towards seniority?
Statutory paid maternity leave before and after childbirth is generally included when calculating the employee’s length of service.
Are employee bonuses included when calculating employment compensation?
Regular bonuses and incentive payments may form part of the broader remuneration used for certain statutory calculations, depending on their nature and frequency.
Are meal and transportation benefits considered part of remuneration?
They can be. Regular benefits with a measurable monetary value may need to be incorporated into the relevant remuneration basis even where the employer provides the service directly rather than paying cash.
Can an employee’s entire salary be garnished?
Generally, no. Ordinary wage income benefits from statutory protection, and as a general rule no more than one quarter of the employee’s monthly wage can be attached, subject to specific exceptions.
Can a retired employee continue working in Turkey?
Yes. Retired individuals can continue working. Their payroll and social security treatment may, however, differ from that of ordinary employees because the SGDP regime may apply.
Do retired employees retain employment rights?
Retirement does not automatically eliminate statutory employment rights. Retired employees who continue working may still benefit from protections relating to matters such as termination, occupational accidents and annual leave, subject to the applicable conditions.
What is the limitation period for employment compensation claims?
For relevant claims arising from employment contracts terminated after the legislative change of 25 October 2017, the limitation period is generally five years. Older cases may be subject to transitional rules.
Is an employee personnel file mandatory?
Yes. Turkish employers are required to maintain personnel documentation for their employees in accordance with Article 75 of the Labour Law and other applicable legislation.
What is the difference between 4/A and 4/B social security?
4/A generally applies to employees working under an employment contract, while 4/B generally applies to self-employed individuals and certain company owners. The contribution structure and payment responsibilities differ.
What is SGDP?
SGDP (Sosyal Güvenlik Destek Primi) is the Social Security Support Contribution applicable in particular to certain retired individuals who continue working.
Conclusion
Understanding Turkish employment law and payroll compliance requires employers to look beyond monthly salary calculations.
Employee seniority, leave periods, recurring benefits, social security classification, retirement status, garnishments and personnel documentation can all affect an employer’s legal obligations.
For international companies, the complexity increases because Turkish employment requirements must often be integrated with global HR policies and compensation structures.
A compliant approach therefore requires accurate payroll data, properly maintained employment documentation and an understanding of how Labour Law No. 4857, Social Insurance and General Health Insurance Law No. 5510 and Turkish Court of Cassation case law interact in practice.
Whether a company operates through its own Turkish entity or uses an Employer of Record solution, effective local payroll and HR administration can help reduce compliance risks while ensuring that employees’ statutory rights are correctly managed throughout the employment lifecycle.
