Employment Regulations


Source: Prime Ministry, Undersecretariat of Treasury; Employment Regulations


The legal working week is 45 hours in Türkiye. Overtime may not exceed 3 hours a day or 90 days a year and is not allowed in underground work. Usual overtime rates involve a 50% daytime premium on weekdays and Saturdays and 100% on Sundays and public holidays.


A minimum wage is set by the government, but actual wages are higher than the minimum wage rate. Salaries are normally reviewed on a half yearly or quarterly basis. The review of wages depends on whether there is a collective bargaining agreement with a union and how long this is valid for.


Fringe benefits cost employers about 30-40% of blue collar worker's gross wages and 25-30% of white collar salaries. The most common fringe benefits are meals, transportation, and yearly bonuses of two or four month's salaries. In addition, cash benefits payable in the event of births, marriage, etc. and heating and clothing allowances are provided through union agreements.


Under existing labor law, a company is required to make lump sum payments to employees whose employment is terminated due to retirement or for reasons other than resignation or misconduct. Severance pay is calculated at one month's salary up to a maximum amount per year of service. This limit is adjusted four times a year. The employer has no obligation to provide severance pay if the employee resigns.


Legislation also requires that all employees should be covered by the social security system and pay social security contributions. The system includes benefits for industrial accidents and sickness, health insurance, maternity, disability, old age and death. It also covers almost all costs of a modest level of medical care.


Contributions as a percentage of gross salary are payable by individual employees and employers. The contribution rate for the employer and employee is around 19,5-25% and 14% of the gross salary respectively. For citizens of countries with which Türkiye has bilateral social security agreements, it is possible to stay within their own national social security schemes.


Employment law currently allows males to retire after 25 years of work and females after 20 years. Moves to raise the retirement age from the current level to ages around 55 and 60 are under discussion.


The employment of foreign personnel is also possible in Türkiye. In order to be able to work and reside in Türkiye, all non-residents must first obtain a work permit from the General Directorate of Foreign Investments and parallel with this permit, a residence permit from the Ministry of Internal Affairs.  Top


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