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.
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