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Hiring in Turkey in 2026: Costs, Contracts, and EOR Options

When I first started working with Turkish teams, I realized how much unique value the country offers—but also how complex the local employment landscape can get. If you plan to hire in Turkey in 2026, you’ll need to be ready for new legal frameworks, evolving payroll costs, and a fast-changing global workforce environment. This guide will help you understand the most current requirements around contracts, legal risks, payroll obligations, and Employer of Record (EOR) solutions. My aim is to make your expansion into Turkey not just possible, but smooth—especially if you’re running a Series B/C-scale up or sitting in a critical HR or management role.

Why Turkish talent is drawing global attention

What keeps attracting international companies to the Turkish market? That’s easy. A multilingual and youthful population, strategic geographic location, and strong networks in technology and service sectors. The OECD’s most recent labor market data found that Turkey’s employment rate in late 2025 stood at just 55.1%. This means less fierce competition for local hires compared to other economies.

However, labor participation remains under 70%. The opportunity is real, but success demands care. From my experience, every multinational seeking to launch in Turkey must look at legal risks, benefit obligations, and contract strategy right from the start.

Understanding the cost landscape for hiring in Turkey

One thing I always tell companies eyeing Turkish talent: Don’t assume hiring costs will be straightforward. Salaries, social security contributions, and employer liabilities can look different depending on region, position, and how you structure your presence on the ground.

Base salaries and minimum wage trends

The legal minimum wage rises nearly every year in Turkey.

At the start of 2026, the Turkish minimum wage is expected to be revised again, in line with local inflation and living cost calculations. In 2025, the gross minimum wage was 17,002 TRY per month, and projections suggest this will cross 19,000 TRY per month by early 2026.

  • Engineering and IT roles: monthly base salaries generally start around 30,000 to 60,000 TRY depending on seniority.
  • Customer service and operations: 22,000 to 28,000 TRY monthly is typical in metropolitan areas.
  • Management roles: 55,000 TRY and above monthly gross salaries, often higher for specialized sectors.

For skilled remote hires, consider local market rates in Istanbul, Ankara, and Izmir as benchmarks. My advice is to always budget for above-average inflation and include mandatory allowances that go beyond gross base pay.

Employer social security and tax obligations

If you’re directly employing in Turkey (not through an EOR), you must factor in these additions to gross salary:

  • Social security premium: 20.5% of gross salary (employer share)
  • Unemployment insurance: 2% (employer share)
  • Severance and notice liabilities (expand on this below)
  • Stamp tax: 0.759% (employee-paid, but you’ll manage calculation/remittance)

The ‘cost to company’ per local hire generally increases true expenses by 25%–30% over advertised base salaries.Any plan to hire local staff must account for these indirect costs. Companies that get surprised by payroll, insurance, or tax outflows end up facing unnecessary stress.

Hidden costs: Termination, severance, and compliance penalties

Terminating a local contract in Turkey often means paying statutory severance—one month’s pay per completed year of service, up to a cap. Compliance mistakes, like missing social security contributions or violating contract protocols, can result in administrative fines or labor court actions. The lesson? Every HR Director or global manager should build a ‘buffer’ for unexpected liabilities and invest in reliable guidance.

Turkey employment contracts in 2026: What’s required?

If you ask me where most expansion plans fail, it’s contract setup. Turkish law takes a strict view on employment contracts, even more so after legal updates in 2025. Whether you sign workers directly or through an EOR, contracts must be detailed and locally compliant.

Written vs. verbal contracts

Although verbal contracts are allowed for fixed-term roles under one year, the safest route for international companies is to always use written contracts in Turkish, even for project-based assignments.

  • Include position, work address, job duties, start date, and salary in local currency
  • Clearly specify probation periods, if any, and mutually agreed benefits
  • Outline grounds for termination and notice periods (usually 2 to 8 weeks, depending on tenure)

In my experience, using a bilingual contract (Turkish/English) helps avoid confusion, but only the Turkish text will have legal validity if disputes arise.

Main contract types recognized in Turkey

When companies want to hire in Turkey, they have a few main choices:

  • Indefinite-term contracts (open-ended)
  • Fixed-term contracts (must be justified and time-bound)
  • Remote/telework contracts (after 2021, need explicit remote work clauses)

Beware: Fixed-term contracts require a legitimate reason—otherwise, an employee may automatically gain indefinite-term status. Templates from other markets rarely fit local needs. This is why partnering with specialists like EWS Limited makes a real difference.

Compliance risks: What every HR leader must watch out for

When I research why foreign companies get into trouble during Turkish rollouts, the same issues pop up every time:

  • Worker misclassification (treating contractors as employees)
  • Missing social security reporting deadlines
  • Using employment terms not recognized by Turkish law
  • Ignoring statutory working hours and overtime (45 hours/week max as of 2026)

Meeting Turkish regulations can seem intimidating at first. But, as shown in our detailed review of legal risks and worker classification outside your home country, proper onboarding and documented procedures simplify the entire process.

Failure to comply can result in wage claims, reinstatement orders, or administrative penalties—issues I’ve seen stake entire expansion budgets on more than one occasion.

Probation and notice periods

Standard probation periods are 2 months, extendable to 4 months by mutual agreement. Even during probation, statutory rights and obligations apply. Notice periods start at 2 weeks for service up to six months and rise to 8 weeks for longer service. Severance eligibility depends on at least 1 year’s employment but must be included in offer letters.

Paid leave, sick leave, and benefits landscape

By Turkish law:

  • Annual paid leave starts at 14 working days for each full year (rising with tenure)
  • Sick leave requires a doctor’s certification—statutory sick pay may be partly covered by social security after three days
  • All employment contracts must document annual holiday, paid public/bank holiday policy, and parental leave

Companies in the IT sector often enhance their offer with meal cards, health coverage, and childcare support to stay competitive with local employers.

Employer of record (EOR): A smart option to access Turkish expertise

Here’s where I’ve seen many series B/C tech companies succeed: using a Turkish EOR partner to legally employ staff if they lack a local entity. This brings speed, risk mitigation, and transparency to the process of securing Turkish talent.

How an EOR works for Turkey

An Employer of Record (EOR) becomes the local legal employer for your Turkish hires, handling payroll, tax, and HR compliance on your behalf while your company directs daily work.

  • Immediate access to compliant contracts and onboarding
  • Full administration of payroll, taxes, insurance, and severance by the EOR provider
  • No need to register a local company or run a Turkish payroll entity

This is especially helpful for agencies, startups, and IT companies entering Turkey for the first time. Not sure how EOR differs from PEO, or when to use each? Our article on PEO vs EOR for your first overseas hire goes further into this comparison.

What I like most: EORs lower your risk of worker misclassification and can even handle offboarding, exit payments, and benefit upgrades. This hands-off structure is exactly what many fast-moving companies need.

Typical EOR fees and cost structures

When I’m asked about budget planning, I remind clients that EOR providers in Turkey often charge a fixed monthly fee per worker plus a percentage of gross payroll. This usually ranges from 8% to 14% of total salary costs, depending on service complexity and volume. There are no hidden costs, which makes forecasting much easier. The final cost is often still less than setting up and running your own local entity for anything under a five-person team.

The 2026 local labor climate: Opportunities and barriers

I have seen more multinational investment in Turkish talent since 2023, but new local regulations and inflationary trends have changed the baseline for compliance and engagement in 2026. An updated approach to Turkish employment law is needed if you’re hiring for cybersecurity, software development, or support functions from abroad.

Market insights and labor statistics

The OECD’s employment snapshot for 2026 shows Turkey’s workforce remains underutilized, but there’s enormous untapped potential.

  • The employment rate is still the lowest among OECD countries
  • Full female participation remains low
  • There is demand for cloud, cybersecurity, and language skills

If you are recruiting technical staff or project teams, expect a ‘remote-first’ mindset. But don’t underestimate the importance Turkish workers attach to full-time compliance, job security, and clear contracts.

Remote work and flexible contracts

Remote work, previously rare, is now a core hiring expectation among Turkish professionals, especially in IT. Companies should update contract templates with home office clauses, data privacy guidelines, and expense stipends to stay competitive.

Recent employment updates also touch on data processing, remote onboarding, and home office support allowances, especially important for overseas companies scaling up Turkish teams.

Key steps for successful hiring in 2026

From my work guiding international clients, I recommend a phased approach:

  1. Confirm business need, budget, and function for Turkish hires—remote versus on-site roles
  2. Study updated Turkish employment regulations, ideally via expert briefings or legal support
  3. Draft contracts using local templates and in Turkish, covering all statutory requirements
    • Probation, notice, job scope, and benefit clauses
    • Confidentiality and non-disclosure (standard for IT roles)
  4. Set up social security registration and payroll submissions, or select a local EOR for hassle-free onboarding
  5. Monitor new regulations and inflation effects, updating offer budgets when needed

This checklist will help companies align their hiring process with fast-evolving rules and avoid liability. For deeper insight into the process, our compliance checklist for international hiring highlights additional procedural details for 2026.

Company formation: Is a local entity needed?

A common question I get is: “Do we need a local company to hire staff in Turkey?” My answer—it depends on your hiring goals.

  • If you want to directly employ more than four to five people, or plan to offer stock options and complex benefits, company formation is often needed.
  • For project hires, remote contractors, or test markets, using an EOR is usually faster and carries less risk.

The regulatory paperwork for establishing a Turkish LLC, called a ‘limited şirket’, includes registration with the Trade Registry, social security, and tax offices. These steps take several weeks and legal fees may apply. Our EWS team can advise you based on structure, scale, and roadmap.

Future trends: What’s coming for Turkish employment law in 2026?

Legislative updates proposed for 2026 are expected to:

  • Further clarify remote work standards and cybersecurity responsibilities
  • Streamline digital onboarding and benefit enrollment
  • Increase employer penalties for misclassification and payroll reporting failures
  • Boost social and parental benefits, especially for female workers

You should expect the authorities to prioritize digital enforcement, with centralized reporting and data-sharing between labor and tax offices. For scaling startups and IT employers, these developments mean more transparency—but also more scrutiny.

Scalable hiring strategies for tech and global teams

C-level, HR, and mobility leaders at tech businesses are facing new growth pains in 2026. Based on years of advising Series B/C companies in this market, here’s what works:

  • Choose local EORs or tested HR providers to minimize mistakes during your first international hires
  • Rely on expert legal and payroll support for compliance assurance
  • Then, once critical mass is proven, consider company formation for a bigger local footprint

The EWS Limited team specializes in such strategic advice and all-in-one support, helping you streamline workforce expansion into Turkey and 100+ global markets. For more tips on building a globally compliant and growth-oriented HR system, pick up our guide to scalable HR strategy for international expansion.

Conclusion: Why 2026 is the right time to hire in Turkey

I believe 2026 offers a strategic window for international companies to secure top Turkish talent while the market remains accessible and flexible. With updated knowledge of contract requirements, true payroll costs, and the value of EOR models, you can avoid legal risks and stay ahead of emerging labor rules. Companies that invest in compliance and strong onboarding succeed fastest in this market.

If you seek reliable, end-to-end support for hiring in Turkey, EWS Limited connects you with guidance and tools you can trust.

Let’s make your expansion in Turkey not just possible, but a game changer. Reach out to us at EWS Limited to discuss tailored EOR services, payroll solutions, and contract templates. With our help, your Turkish hiring will be set up for growth and future-proof compliance.

Frequently asked questions about hiring in Turkey in 2026

What are the hiring costs in Turkey 2026?

Hiring costs in Turkey in 2026 include gross base salary, social security contributions of about 20.5% (employer share), 2% unemployment insurance, mandatory severance accruals, and origin-specific benefits. For most hires, total employer costs are about 25–30% above advertised gross wages due to tax and insurance obligations. Engineering and IT salaries generally start from 30,000 TRY/month, while legal minimum wage is expected to top 19,000 TRY/month. EOR services typically add a 8-14% fee over total payroll, but simplify compliance.

How to comply with Turkey employment law?

To comply with Turkish employment law in 2026, use written contracts in Turkish, register hires with the social security agency, pay all premiums and taxes on time, detail statutory leave and benefits, and adhere to maximum working hours (45 per week). Avoid misclassifying workers and rely on local legal guidance to ensure contract templates meet current rules. Engage support from specialist providers like EWS Limited for extra assurance.

What is an EOR in Turkey?

An EOR (Employer of Record) is a third party that becomes the legal employer of your Turkish team members, handling payroll, taxes, benefits, and compliance while you direct their day-to-day work. This model lets you hire locally without incorporating or running a Turkish entity, lowering risks, speeding onboarding, and reducing compliance headaches.

Is it worth using a Turkish EOR?

Yes, using a Turkish EOR makes sense for companies without a local presence or those hiring a small team. EORs streamline compliance, save setup costs, handle payroll and benefits, and protect you from misclassification or registration risks. For first hires, project-based roles, or rapid market testing, an EOR approach is practical and secure.

How to draft a contract in Turkey?

To draft an employment contract in Turkey, use the Turkish language and include job title, location, start date, salary (gross, TRY), working hours, probation, notice, and benefit terms. Include details on annual leave, termination rights, and statutory obligations. For remote roles, add clauses for home office, technology, and cost reimbursement. Always follow updated legal templates and secure a legal review for accuracy.

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