Expanding a business into new markets often looks promising, but the legal and operational barriers are real. Countries like Turkey present unique challenges, including strict labor laws, evolving regulations, and complex payroll systems.
That’s where Employer of Record (EOR) services come in. An EOR acts as the legal employer on your behalf, enabling you to hire local talent without setting up a legal entity while staying compliant with local laws.
In Turkey, where employment laws heavily favor worker protection and administrative tasks can delay onboarding, EOR services provide a faster, safer path to market entry.
This guide explores how EOR services work in Turkey, the benefits they offer, and why they’ve become an essential tool for global companies looking to build a presence in this dynamic economy.
Read more: EOR Solutions: The Key to Scaling Your Global Business
Why Expand Your Business to Turkey?
Turkey presents a compelling opportunity for international businesses aiming to expand into a dynamic and strategically positioned market.
- Robust Population Growth: As of early 2025, Turkey’s population is estimated at approximately 87.6 million, reflecting steady growth and a substantial domestic market.
- Young and Educated Workforce: With a median age of 33.5 years, Turkey boasts a youthful and increasingly educated labor force, offering a competitive advantage for businesses seeking energetic and adaptable employees.
- High Urbanization Rate: Approximately 76.9% of Turkey’s population resides in urban areas, providing businesses with access to concentrated markets and modern infrastructure.
- Significant Economic Standing: In 2023, Turkey’s nominal GDP reached $1.118 trillion, positioning it as the 18th largest economy globally.
- Resilient Economic Growth: Despite challenges such as high inflation and geopolitical tensions, Turkey’s economy demonstrated resilience with a 4.5% growth rate in 2023, driven by strong domestic demand and strategic economic policies.
Beyond these statistics, Turkey offers a strategic location between Europe and Asia.
Its diverse economy covering manufacturing, technology, and services makes it attractive for businesses seeking access to both regional and global markets.
What Is an Employer of Record (EOR)?
An Employer of Record (EOR) is a third-party organization that legally employs workers on behalf of another company. This arrangement allows businesses to hire employees in a foreign country without establishing a local legal entity.
The EOR assumes responsibility for all formal employment tasks, including payroll, taxes, benefits, and compliance with local labor laws, while the client company oversees the day-to-day activities and work of the employees.
Key Responsibilities of an EOR:
- Legal Employment: Drafting and maintaining compliant employment contracts in accordance with local laws.
- Payroll Management: Handling payroll processing, tax withholdings, and ensuring timely payment to employees.
- Benefits Administration: Managing statutory benefits such as health insurance, retirement plans, and other employee perks.
- Compliance Assurance: Ensuring adherence to local labor laws, including regulations on working hours, termination procedures, and employee classifications.
- Risk Mitigation: Reducing the risk of non-compliance penalties and legal disputes related to employment practices.
Read more: Turkish Employment Law Made Simple: The EOR Advantage
How EOR Services Work in Turkey
Navigating Turkey’s employment landscape can be complex due to its unique labor laws and regulations.
Employer of Record (EOR) services simplify this process by managing compliance with local employment standards, allowing businesses to focus on their core operations.
- Working Hours
Under the Turkish Labor Act of 2003, the standard workweek is capped at 45 hours, typically distributed evenly across the working days. Any work exceeding this limit is considered overtime and must be compensated accordingly.
- Minimum Wage
As of January 1, 2025, Turkey’s net monthly minimum wage is set at ₺22,104 (approximately $630), following a 30% increase to address inflation and cost-of-living concerns.
- Severance Pay and Notice Periods
Employees who have completed at least one year of service are entitled to severance pay upon termination, calculated based on their length of service and last drawn salary. Notice periods vary depending on the duration of employment, ensuring both parties have adequate time to adjust.
- Taxes and Social Security
Employers are responsible for withholding and remitting income taxes and social security contributions on behalf of their employees. This includes payments to the Social Security Institution (SGK) and unemployment insurance funds, ensuring compliance with national regulations.
- Work Permits for Foreign Employees
Foreign nationals must follow Turkey’s employment authorization process. While detailed and bureaucratic, this requirement can be easily managed with the right EOR partner by removing legal friction from your expansion plan.
By leveraging EOR services, companies can efficiently manage these aspects of Turkish employment law, ensuring compliance and reducing administrative burdens.
Key Benefits of Using an EOR in Turkey
Partnering with an Employer of Record (EOR) in Turkey offers more than administrative ease, it’s a strategic advantage.
EOR providers like Gini Talent help international businesses navigate Turkey’s evolving labor environment, enabling fast, compliant, and risk-free market entry. Here’s how:
5.1 Faster Market Entry
Setting up a legal entity in Turkey can take several months and involve complex regulatory steps. An EOR bypasses this process by acting as the legal employer, allowing you to onboard talent within days.
For startups and global companies testing the Turkish market, this means faster execution and shorter time to revenue.
5.2 Legal and Regulatory Compliance
Turkey’s labor code is comprehensive and subject to frequent legislative changes. Employee protections are strongly enforced, especially around contracts, termination, and wage regulations.
Gini Talent ensures full compliance by aligning payroll, working hours, tax deductions, and benefit structures with current law. Our in-country legal team provides ongoing guidance, adapting to regulatory updates before they impact on your operations.
5.3 No Need for a Local Entity
An EOR allows your business to hire in Turkey without establishing a branch or subsidiary.
This is especially useful for businesses that want to operate flexibly or scale their teams without incurring the costs and liabilities of permanent establishment. You focus on your team, we manage the legal and administrative side.
5.4 Cost and Time Efficiency
Outsourcing HR, payroll, and compliance allows your internal teams to focus on strategy, not admin. With Gini Talent’s all-in-one portal, you can:
- Track payroll and expenses
- Approve leave requests
- Manage equipment and assets
This reduces overheads, avoids hiring additional internal staff, and improves operational visibility.
5.5 Risk Mitigation and Local Expertise
Without local HR and legal knowledge, businesses risk misclassifying employees, violating IP terms, or mismanaging terminations.
- Gini Talent offers access to legal and HR professionals who handle onboarding, documentation, and employment practices with precision.
- We help you avoid penalties, maintain your reputation, and scale with confidence.
In Turkey, all employee-related data must be reported through the Sosyal Güvenlik Kurumu (SGK) system. Incorrect submissions, even unintentional ones, can trigger automatic fines.
Moreover, foreign workers require a formal work permit, and certain sectors limit the number of foreign employees per entity. Gini Talent’s deep integration with Turkish regulatory bodies helps clients stay ahead of these risks.
But how do you ensure you’re choosing the right partner to carry these responsibilities for your business in Turkey?
Read more: Ultimate Guide to PEO & EOR Services in Turkey
How to Choose the Right EOR Provider in Turkey
Selecting the right Employer of Record (EOR) provider in Turkey can significantly impact your success in the market.
Beyond basic service delivery, the ideal partner should combine legal precision with local insight and operational flexibility. Here are key factors to consider:
1. Proven Experience in the Turkish Market
Look for a provider with a track record of working within Turkey’s complex employment landscape. Local experience ensures your EOR understands the nuances of Turkish labor laws, payroll regulations, and cultural expectations minimizing the risk of non-compliance or miscommunication.
2. Legal and Tax Expertise
A reliable EOR should offer in-house or closely partnered legal and tax advisors familiar with Turkish labor code, tax legislation, and social security systems. Their job is not just to execute tasks but to advise and protect your company from legal pitfalls.
3. Transparent Pricing and Flexible Contracts
Avoid providers with hidden fees or rigid, long-term contracts. The best EORs offer clear pricing structures, customizable packages, and flexibility to scale your team up or down based on your growth stage.
4. Centralized Workforce Management Tools
Look for providers offering more than basic payroll portals. Gini Talent’s integrated dashboard gives you real-time oversight of tax submissions, leave balances, asset tracking, and documentation flow.
This level of visibility is essential when managing a remote or distributed team especially in a compliance-heavy environment like Turkey.
5. Integration with Local Recruitment Support
Unlike standalone EOR providers, Gini Talent integrates EOR services with full-cycle recruitment and staffing solutions.
We don’t just manage employees; you can also source top Turkish talent through our local recruitment experts.
This end-to-end support simplifies hiring and ensures role fit from day one.
Choosing the right EOR in Turkey means partnering with a provider who offers more than compliance, they should offer control, clarity, and strategic support. With Gini Talent, you’re not just hiring people, you’re building a workforce foundation that scales with your goals.
Ready to Build Your Team in Turkey? Here’s Your Next Step
Expanding into Turkey doesn’t have to mean navigating legal complexity, payroll burdens, or HR risks alone. With the right Employer of Record (EOR), your business can move faster, stay compliant, and build a local workforce with confidence.
But choosing an EOR is just the beginning.
If Turkey is on your roadmap for expansion, now is the time to move from research to action. Review your hiring goals. Identify the roles you need. Think about how fast you want to scale and how much operational risk you’re willing to take on internally.
Gini Talent is here to help you take that next step. From strategic hiring to full legal employment support, we offer localized EOR services tailored to your growth plans in Turkey.
Let’s talk. Book a consultation with our team today and discover how simple your Turkish expansion can be with Gini Talent by your side.
