10 Strategic benefits of using Employer of Record (EOR) services in Turkey: 2026 Guide
- Natia Gabarashvili
- Oct 31
- 12 min read
Table of contents:
Introduction
If you’re looking to hire talent in a country that bridges Europe and Asia, Turkey is where your next growth story might start.
It’s a nation with strong economic fundamentals, a young, educated workforce, and business infrastructure that rivals most EU markets, just without the EU red tape. The country’s mix of affordability, talent depth, and regulatory clarity has turned it into one of the most attractive nearshoring destinations for global employers.
Using employer of record services in Turkey is how global companies are hiring here quickly, safely, and legally without setting up a subsidiary or learning Turkish payroll law overnight.
Through Team Up’s Turkish entity, your employees are hired under local labor law, while you manage the work. We handle everything else, payroll, contracts, taxes, benefits, and compliance, so your entry into Turkey’s market takes days, not months.
In this 2026 guide, we’ll unpack the 10 strategic benefits of using an Employer of Record (EOR) in Turkey and show you why more international companies are building teams here through TeamUp.
Start with our [Employer of Record in Turkey 2025: The Complete Hiring Guide (EOR-01)] for the full legal and tax breakdown.
What does an Employer of Record (EOR) do in Turkey?
Turkey’s labor framework is detailed, multilingual, and, if you’re new to it, complex. The Turkish Labor Code (Law No. 4857) defines every aspect of the employment relationship: from working hours and benefits to severance, union rights, and data protection.
An Employer of Record (EOR) ensures your company operates within that legal framework without registering an entity. TeamUp acts as your official employer under Turkish law, while you retain complete control over the team’s day-to-day work and performance.
Here’s what that looks like in practice:
Bilingual Employment Contracts – All employment agreements must be in Turkish and English. Contracts include IP transfer and confidentiality clauses compliant with the Industrial Property Code (Law No. 6769) and the Law of Obligations.
Payroll & Tax Filing – Turkey’s payroll system is centralized through the Revenue Administration (GİB) and Social Security Institution (SGK). Employers must register all employees, withhold income tax (15–40%), and pay 22.5% in social contributions. TeamUp manages all calculations, filings, and payments on your behalf.
Benefits Administration – Statutory leave (14–26 days), SGK health insurance, and unemployment contributions are all managed through local systems.
Immigration & Work Permits – Foreign employees must obtain a Çalışma İzni (work permit) and residence visa through the Ministry of Labor and Social Security (MoLSS). TeamUp handles the entire application and renewal cycle.
Local HR & Legal Representation – We handle employee onboarding, resignations, and terminations in full compliance with Articles 17–32 of the Labor Code.
Turkey ranks among the top 30 countries for ease of doing business (World Bank, 2024), largely thanks to its digitalized payroll and reporting infrastructure. With an EOR, you tap into that system instantly without the paperwork.
The 10 Strategic Benefits of Using an Employer of Record in Turkey
Hiring through an employer of record services provider in Turkey isn’t just faster, it’s safer and smarter. It gives you a compliant infrastructure, legal protection, and access to a world-class workforce that’s already shaping the region’s future.
Let’s break down why.
1. Hire in days with Employer of Record (EOR) services in Turkey
Setting up a legal entity in Turkey typically takes 6–8 weeks. You’ll need notarized documents, a Turkish tax ID, a lease contract, and a local accountant. Add delays for opening a bank account, and “hiring fast” suddenly feels like a myth.
Through Team Up’s EOR in Turkey, you can onboard employees within days using our existing local entity. We issue compliant contracts, handle SGK registration, and process payroll immediately, so you can start operating while competitors are still waiting for their tax number.
It’s how global companies test Turkish operations, pilot new teams, or hire developers quickly without risk.
2. Ensure Full Compliance with Labor Laws in Turkey
Turkey’s Labor Code is employee-protective and tightly regulated. Each employment contract must define job duties, working hours, probation terms, and compensation. Terminations require written notice, and severance pay (based on years of service) is mandatory.
Non-compliance isn’t cheap. Fines can reach ₺50,000 (€1,400) per employee for unregistered hires or unpaid social contributions.
TeamUp ensures full compliance from day one:
All contracts filed through SGK and GİB.
Monthly income tax and contribution reports are submitted digitally.
Benefit entitlements are tracked automatically.
You stay compliant with Articles 18–32 of the Labor Code, without touching a single government portal.
3. Simplify payroll and tax reporting with EOR services in Turkey
Turkey’s payroll rules are straightforward, until you try to run them yourself.
Employers must deduct income tax (15–40%), stamp tax (0.759%), and employee SGK (14%), while contributing 22.5% in social insurance and 2% for unemployment. Salaries are paid in Turkish lira (TRY) via registered bank accounts, and all filings must match data in the GİB e-declaration system.
Team Up’s payroll infrastructure handles every step:
We calculate gross-to-net pay using current SGK and tax thresholds.
File returns directly with GİB and SGK.
Issue compliant payslips and employee reports in Turkish and English.
Send you one invoice in EUR or USD.
That’s compliant payroll without the accounting maze.
4. Reduce Overhead and Cut Expansion Costs with a Local EOR Partner
Entity setup in Turkey looks affordable until you calculate recurring costs.
A company must maintain a local accountant, payroll officer, and legal counsel, costing upwards of €500–€800 per month. Add mandatory chamber of commerce fees and bank compliance costs, and your “lean entry” becomes a full-time expense.
Team Up’s EOR pricing is flat, €199 per employee, per month, covering everything from payroll processing to HR support.
No setup fees. No hidden charges. No government delays.
It’s a scalable model: perfect for early-stage expansion or remote teams under 20 employees.
As you grow, we’ll help you transition into your own Turkish entity when it’s cost-effective.
5. Protect Your IP and Legal Rights with Employer of Record Contracts
Turkey has clear IP ownership laws under the Industrial Property Code (Law No. 6769) and Law of Obligations. However, ownership defaults to the employee unless explicitly transferred via a written, local-language contract.
That’s where most foreign companies trip up.
Every Team Up EOR employment contract includes bilingual IP transfer and confidentiality clauses enforceable in Turkish civil courts. Whether your team builds code, designs products, or manages data, your company retains 100% ownership of what they create.
Our contracts also include GDPR-aligned data clauses under the Personal Data Protection Law (KVKK No. 6698), ensuring your employee data remains secure and compliant.
6. Access Skilled Talent in Turkey with a Trusted EOR Provider
Turkey’s workforce is one of the youngest and most educated in the region; 50% of the population is under 33, and over 1 million university graduates enter the market every year (TurkStat, 2024).
The country’s IT, fintech, and logistics sectors have exploded over the past five years, supported by strong government incentives and international partnerships. Cities like Istanbul, Ankara, and Izmir now host thriving tech clusters with talent experienced in React, .NET, Python, and SAP, at salaries 40–60% lower than Western Europe.
7. Offer Competitive Employee Benefits through EOR Services in Turkey
Turkey’s social welfare structure is one of the most regulated in Eurasia, and for good reason: it protects employees through state-backed programs funded by employers.
Under the Labor Code (Law No. 4857) and Social Security Law (No. 5510), every employee hired in Turkey must be enrolled in the Social Security Institution (SGK) within 30 days of employment. This provides health insurance, disability, maternity, unemployment, and retirement benefits.
Here’s the legal baseline:
Paid annual leave: 14 working days after one year, 20 days after five years, 26 after fifteen (Article 53).
Public holidays: 14 national holidays, including Republic Day, Ramadan, and Victory Day.
Maternity leave: 16 weeks (8 before and 8 after birth), fully paid under SGK.
Paternity leave: 5 paid days.
Severance pay: One month’s salary per completed year of service (Article 14 of Labor Law 1475, still in force).
Notice periods: 2 to 8 weeks depending on seniority (Article 17).
Team Up’s EOR services in Turkey don’t stop at compliance. We structure compensation packages that attract top-tier professionals:
Private health insurance plans covering major hospitals (Acıbadem, Florence Nightingale).
Meal and transportation allowances (tax-exempt up to TL 170/day).
Optional pension contributions under Turkey’s Automatic Individual Pension System (BES).
Remote work stipends and hybrid office access in Istanbul and Ankara.
All benefits are managed and reported through our local HR team in Turkey, ensuring perfect alignment between SGK reporting, payroll, and employee experience.
8. Streamline Work Permits and Immigration via a Regional EOR Partner
Foreign hiring in Turkey is regulated under the International Labor Force Law (No. 6735) and administered by the Ministry of Labor and Social Security (MoLSS).
Every foreign national must hold both a residence permit and a work permit (Çalışma İzni), which are linked electronically via the e-Government portal (turkiye.gov.tr).
Team Up’s EOR service sponsors and manages this entire process:
We file the application directly with MoLSS using our corporate credentials as the Turkish employer.
Once approved, your employee’s permit is valid for one year and renewable for two-year periods.
Residence permit registration is completed automatically through the integrated MoLSS–DGMM system.
We track expiry dates and handle renewals proactively, no last-minute rejections, no overstays.
We’ve handled cases for remote tech employees, expat executives, and regional managers transferring under intra-company assignments.
In 2024, Turkey issued over 190,000 foreign work permits (MoLSS data), a 22% increase year-on-year. The government’s “Qualified Workforce” program now prioritizes applicants in IT, energy, and finance sectors, key areas for global EOR hiring.
9. Minimize Legal and Financial Risks with Employer of Record Solutions
Turkey’s labor environment is employee-centric. Every unregistered worker, missed contribution, or underdeclared wage exposes the employer to administrative fines and retroactive liabilities.
Here’s what risk looks like in numbers:
Unregistered employment: TL 28,008 per employee (2025 SGK penalty).
Failure to file monthly declarations: TL 4,002 per report (per month).
Underpaid social contributions: 3% late payment surcharge + interest.
Unlawful termination: reinstatement orders + compensation up to 8 months’ salary.
These fines hit the legal employer—which is why using an EOR isn’t just convenient; it’s strategic insurance.
With Team Up as your Employer of Record, we take on every filing, audit, and compliance task under our Turkish entity. That includes:
Monthly income tax (Stopaj) declarations to the Revenue Administration (GİB).
SGK and unemployment premium filings.
Stamp tax (Damga Vergisi) reporting at 0.759% of gross wages.
Annual income reconciliation certificates for all employees.
Your liabilities are legally absorbed by our entity. You retain management control; we carry the compliance risk.
10. Scale Seamlessly across Europe and Asia with Team Up’s EOR Network
Turkey isn’t just a single-market play; it’s a regional operations hub.
With one compliant hiring framework, you gain access to both the EU market (via the Customs Union) and the Middle East & Caucasus region. Team Up’s integrated EOR network across Georgia, Armenia, and Azerbaijan means your business can:
Hire cross-border teams under a single service agreement.
Centralize payroll reporting across multiple currencies (TRY, EUR, USD, GEL).
Maintain unified compliance tracking across tax systems.
Relocate or reassign staff seamlessly through Turkey’s liberal visa regime.
This setup is particularly popular for companies establishing shared service centers in Istanbul or Izmir while coordinating operations across Tbilisi and Baku.
TeamUp’s regional HR desk handles all payroll, tax, and labor documentation locally in each jurisdiction, no third-party contractors, no compliance blind spots.
Why Turkey over other EOR markets
Turkey offers a rare mix of regulatory transparency, geopolitical access, and demographic advantage that’s hard to replicate elsewhere.
Here’s what sets it apart:
1. Predictable taxation.
Progressive income tax: 15% to 40%.
Corporate tax: 20%.
Employer SGK contribution: ~20.75%. All declared electronically through GİB e-Beyanname—one of the most efficient payroll systems in the region.
2. Strong labor infrastructure.
The SGK, İŞKUR (Employment Agency), and MoLSS are fully digitalized. Employer filings are centralized and traceable, reducing compliance uncertainty.
3. Talent availability.
Over 1 million graduates annually, 35% in STEM (TurkStat 2024). The Turkish tech ecosystem has grown 30% since 2020, backed by the government’s Technology Development Zones (TDZ) incentives.
4. Cost efficiency.
Average monthly net salary for mid-level software engineers: €1,200–€1,500, compared to €4,000+ in Western Europe.
5. Geographic reach.
Istanbul’s GMT+3 time zone enables full-day overlap with both Europe and the Gulf.
In short: Turkey is an OECD-compliant economy with emerging-market cost advantages.
That balance makes it one of the most strategic EOR markets heading into 2026.
How to choose the right Employer of Record company in Turkey
Choosing the wrong provider is the fastest way to turn “EOR” into “error.” Here’s your due diligence checklist:
Local Registration: Ask for the EOR’s Turkish Tax Identification Number (Vergi No) and SGK employer registration. If they don’t have their own, they’re subcontracting.
Bilingual Employment Contracts: Contracts must be in Turkish under Labor Law Article 8, with an English copy for the client. Ensure IP assignment clauses comply with Industrial Property Code Article 124.
In-Country Payroll Processing: Payroll should run through Turkish banks and report to GİB and SGK under the provider’s credentials, not via external accountants.
Local HR Presence: Turkish employees expect face-to-face support for HR letters, resignation documentation, and SGK updates. TeamUp’s HR staff in Istanbul and Ankara handles all in Turkish and English.
Termination and Severance Compliance: Confirm your provider issues termination notices and calculates severance correctly. Article 17–21 compliance is critical, missteps lead to court cases.
Team Up meets all five criteria. We own our Turkish entity, issue bilingual contracts, and manage every statutory filing locally. No outsourcing, no intermediaries.
Conclusion
Turkey delivers something most markets promise but few achieve: speed, scale, and stability, all under one labor system that works.
Hiring through TeamUp’s employer of record services in Turkey gives you a compliant foundation within days. You get:
Legally registered employees.
Bilingual contracts are enforceable in Turkish courts.
Payroll, taxes, and benefits are handled under SGK and GİB systems.
Local HR and legal support in Istanbul.
Whether you’re piloting a regional project or building a long-term team, TeamUp ensures every hire is compliant, protected, and productive from day one.
Team Up helps global companies hire in Turkey legally, fast, and at local cost.
Frequently asked questions
1. What is an Employer of Record (EOR) in Turkey?
An Employer of Record (EOR) in Turkey is a licensed local company that legally employs staff on your behalf under Turkish labor law. The EOR signs compliant employment contracts, registers employees with SGK (Social Security Institution), and handles all tax filings through GİB (Revenue Administration).
With TeamUp’s EOR in Turkey, you manage the work, and we handle the legal structure — payroll, benefits, and compliance — under Labor Law No. 4857 and Social Security Law No. 5510.
2. How do employer of record services in Turkey work?
When you use Team Up’s employer of record services in Turkey, your employees are hired under TeamUp’s local entity. We:
Draft bilingual (Turkish-English) contracts that comply with Turkish labor codes.
Register the employee with SGK for health, pension, and insurance coverage.
File income tax and social contributions to GİB monthly.
Manage payroll, leave tracking, and benefits. You get a single monthly invoice in EUR or USD — while your team gets local payslips in TRY (Turkish lira).
3. Is hiring through an EOR legal in Turkey?
Yes. Hiring through an EOR is fully compliant when the provider:
Operates a legally registered entity in Turkey.
Files all payroll taxes and social insurance under its SGK registration.
Issues employment contracts governed by Law No. 4857.
TeamUp meets all three conditions and acts as the legal employer of record, ensuring you stay compliant and protected from labor or tax disputes.
4. What taxes apply when hiring employees through an EOR in Turkey?
Turkey uses a progressive income tax system (15–40%) and mandatory social security contributions. Here’s how it breaks down:
Employee deductions: 14% SGK + 1% unemployment insurance + income tax + 0.759% stamp tax.
Employer contributions: ~20.75% SGK + 2% unemployment insurance. TeamUp calculates, withholds, and pays these directly to SGK and GİB, ensuring full compliance.
5. How much does it cost to use an Employer of Record in Turkey?
TeamUp’s EOR cost in Turkey starts at €199 per employee per month, covering payroll, tax filing, compliance, and HR administration. This is significantly cheaper than setting up your own entity, which typically costs €1,200–€2,000 upfront and €500–€800 in monthly overhead.
6. What are the main benefits of using an EOR in Turkey?
The key advantages of employer of record services in Turkey include:
Hiring employees in days instead of months.
Full compliance with Labor Law No. 4857 and Tax Law No. 193.
Payroll accuracy through GİB e-declaration systems.
Transparent, predictable cost structure.
IP and data protection under Law No. 6769 and KVKK (Law No. 6698).
7. Can an EOR help hire foreign employees in Turkey?
Yes. Team Up sponsors work permits (Çalışma İzni) through the Ministry of Labor and Social Security (MoLSS) and manages residence registration for foreign hires. Permits are valid for one year and renewable for two-year periods. We handle all submissions, renewals, and SGK registrations so your international employees are fully legal from day one.
8. What industries benefit most from EOR services in Turkey?
EOR services are most popular in sectors that rely on skilled professionals and bilingual teams, such as:
Technology and software development.
Fintech and financial operations.
Engineering and manufacturing.
Customer service, HR, and global shared services.
TeamUp’s EOR network in Istanbul, Ankara, and Izmir connects global employers with top-tier Turkish professionals.
9. How does an EOR protect intellectual property in Turkey?
Under the Industrial Property Code (Law No. 6769), IP created by an employee belongs to the employer only if the contract explicitly assigns it. TeamUp’s bilingual contracts include IP assignment clauses enforceable under Turkish law, ensuring your company retains ownership of all code, designs, and creative output. We also integrate data protection compliance with KVKK Law No. 6698 to keep your employee data secure.
10. How do I choose the best EOR company in Turkey?
When selecting an EOR provider, verify that they:
Operate a registered Turkish entity with SGK and tax registration.
Provide bilingual employment contracts (Turkish + English).
Handle payroll and tax filing in-country (not outsourced).
Offer local HR support in Turkey for employee relations.
Are transparent about pricing and legal compliance.
TeamUp is one of the few EORs with its own Turkish entity and HR staff in Istanbul and Ankara — giving you real local coverage, not just a “global dashboard.”
