Turkey EOR Pricing: Cost of Using an Employer of Record in Turkey

Why Choose an Employer of Record in Turkey?

Turkey represents one of the most dynamic labor markets in the MENA region, with a young, educated workforce of over 30 million professionals. For international companies looking to expand into Turkey, the cost of using an EOR in Turkey is significantly lower than establishing a local entity — typically saving 60-80% in setup costs and months of administrative overhead.

An Employer of Record (EOR) in Turkey acts as the legal employer on your behalf, handling all aspects of payroll compliance in Turkey, tax obligations, social security contributions, and employment contracts. This allows you to hire top Turkish talent within 1-3 weeks instead of the 3-6 months required to set up a local subsidiary.

Understanding EOR Pricing in Turkey

The EOR fee structure for Turkey is straightforward: a fixed monthly fee per employee that covers all compliance, payroll processing, and HR administration. Unlike traditional expansion models, there are no hidden costs for legal setup, registered agent fees, or ongoing corporate compliance.

When evaluating the cost comparison between EOR and direct employment in Turkey, consider the total cost of ownership. Setting up a Turkish limited liability company (LLC) requires minimum capital of 50,000 TL, notarized documents, trade registry fees, and ongoing accounting obligations. An EOR eliminates all of these requirements.

Employer Costs and Social Security in Turkey

Understanding social security contributions for EOR in Turkey is critical for accurate budgeting. Turkish law mandates specific employer and employee contributions that are automatically handled by your EOR provider:

• Employer Social Security (SGK): 20.5% of gross salary — covering retirement, disability, and death insurance (11%), general health insurance (7.5%), and short-term insurance (2%)
• Employee Social Security: 14% of gross salary — deducted from the employee's paycheck
• Income Tax: Progressive rates from 15% to 35%, depending on annual income brackets
• Stamp Tax: 0.759% on gross salary

The EOR payroll processing in Turkey also accounts for the 5% employer SGK incentive discount available for qualifying employers, which Gini Talent automatically applies when eligible, reducing your effective employer contribution.

Tax Obligations for EOR in Turkey

Turkey's tax system requires careful navigation. The tax obligations for EOR in Turkey include:

• Monthly SGK declarations (submitted by the 23rd of each month)
• Monthly withholding tax (Muhtasar) declarations
• Annual income tax reconciliation
• Stamp tax on employment contracts and salary payments

Your EOR provider manages all of these obligations, ensuring zero risk of penalties or late filing fees. This is a key advantage when comparing EOR vs setting up a local entity — compliance errors with the Turkish Social Security Institution (SGK) can result in penalties of up to 3x the owed amount.

Employee Benefits Through EOR in Turkey

Turkish employment law (Labor Law No. 4857) provides robust employee benefits through EOR that must be honored:

• Annual Leave: 14-26 days depending on tenure (14 days for 1-5 years, 20 days for 5-15 years, 26 days for 15+ years)
• Public Holidays: 14.5 official public holidays per year
• Severance Pay (Kıdem Tazminatı): 30 days' gross salary per year of service, with a ceiling of approximately 47,460 TL/month in 2026
• Notice Period: 2-8 weeks depending on tenure
• Maternity Leave: 16 weeks (8 weeks pre-birth, 8 weeks post-birth) at full pay
• Paternity Leave: 10 days paid leave

How to Choose an EOR Provider for Turkey

When evaluating how to choose an EOR provider for Turkey, consider these critical factors:

1. Local expertise: Does the provider have in-house Turkish HR and legal teams, or do they subcontract?
2. Pricing transparency: Is the monthly fee all-inclusive, or are there additional charges for onboarding, offboarding, or contract amendments?
3. Compliance track record: How does the provider handle SGK audits and labor inspections?
4. Technology: Can employees access payslips, leave requests, and benefits information through a self-service portal?
5. Speed: What is the average onboarding time from contract signing to first day of work?

Gini Talent offers all-inclusive EOR pricing in Turkey with no hidden fees, in-house Turkish legal and HR teams, and an average onboarding time of 3-4 business days for standard hires.

EOR vs PEO vs Direct Hire in Turkey

Understanding the difference between EOR vs PEO vs direct hire is essential for making the right decision:

• EOR (Employer of Record): The EOR is the legal employer. You maintain day-to-day management of the employee. Best for companies without a Turkish entity.
• PEO (Professional Employer Organization): Co-employment model. Requires an existing Turkish entity. Best for companies that already have a local presence but want to outsource HR.
• Direct Hire: You establish a Turkish entity and hire directly. Requires significant investment in legal setup, accounting, and ongoing compliance. Best for companies planning 20+ hires in Turkey.

For most international companies hiring 1-19 employees in Turkey, EOR services in Turkey provide the optimal balance of speed, cost-efficiency, and compliance.