Are you in need of new team members? Consider looking outside your borders and hiring international employees. Expanding your team with global talent has a range of benefits — you can bring in fresh perspectives, access new markets, save on labor costs, and more.
Turkey has become a popular outsourcing destination thanks to its skilled workforce, cost-effective labor, and strategic location. If you’re interested in hiring employees from Turkey, it’s key to understand how much it costs. This guide will break down everything you need to know.
Costs to Consider
There are several costs to keep in mind when hiring employees from Turkey. Some are legally mandated, while others are optional but frequently offered. We’ll also go over some fringe benefits that can help attract and retain top talent.
Mandatory Costs
- Salary
- Taxes and benefits
- Paid time off
- Overtime pay
- Severance pay
Optional and Frequently Offered Benefits
- Added Benefits
- Bonuses, discounts, and rewards
- Extended health plan
Optional Perks
- Coworking space
- Health and wellness benefits
Mandatory Costs of Hiring in Turkey
To start, you need to take the following costs into account - there’s no way around it. So make sure to budget for them to ensure you comply with Turkey’s local laws and regulations.
Salary
The minimum wage in Turkey is 8,506.80 Turkish liras (TRY) per month, or around 360 USD. The average salary currently stands at approximately 9,830 TRY per month, which equates to around 416 USD.
Taxes and contributions
Employers are required to make the following social security contributions in Turkey:
- 2% - Short-Term Insurance Branch Premium
- 11% - Insurance & Disability
- 7.5% - General Health Insurance
- 2% - Unemployment Insurance
Paid leave
Employees in Turkey are entitled to the following types of paid leave from work.
- Vacation: Employees who have worked continuously for less than a year are generally entitled to 14 days of paid annual leave. This entitlement increases with the length of service, up to a maximum of 26 days after 15 years of continuous employment.
- Sick leave: Employees are eligible for up to one week of paid sick leave when they provide the necessary medical documentation. Sick leave may be extended beyond this period, but any additional time off would be unpaid.
- Maternity Leave: Expectant moms have a total of 16 weeks off, split into eight weeks before the due date and 8 weeks after giving birth. During this time, employees receive maternity pay from the Social Security Institution. The amount and payment specifics depend on factors like length of service and the terms of the employment contract or collective bargaining agreement.
- Public holidays: Turkey has 14 public holidays, and employees are generally entitled to receive their regular salary. Public holidays are considered non-working days, and employees who are scheduled to work on these holidays are typically entitled to receive their regular pay for the day. This is often referred to as "holiday pay" or "public holiday pay."
Overtime pay
Employees in Turkey are generally allowed to work a maximum of 45 hours per week, including any overtime hours. Any work performed beyond the regular working hours is considered overtime.
The overtime rate in Turkey is typically 1.5 times the regular hourly wage for the first nine hours of overtime in a week. After nine hours, the rate increases to double the regular hourly wage.
Severance pay
Severance pay is calculated based on the employee's length of service and their most recent gross monthly salary. The general formula is as follows:
- For each year of employment, half of the monthly salary is multiplied by the number of years worked.
- For incomplete years, the payment is pro-rated based on the months worked.
There are certain caps in place for severance pay calculation. The maximum severance pay amount is set at six times the monthly gross salary.
Optional Costs
Attracting in-demand talent in today’s job market isn’t easy. The ongoing labor shortage has companies locked in fierce competition around the world, making it increasingly important to level up. Consider implementing the following benefits to attract and retain top talent.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses
Along with attracting top talent, bonuses come with a range of benefits. They help to improve retention rates, strengthen company morale, and boost productivity. Providing your team with a variety of generous bonuses shows them you value their hard work. There are a number to choose from, like signing, referral, and holiday bonuses.
Perks and Rewards
In addition to bonuses, many employers opt to provide their team with fun perks and gifts as a way to show their appreciation. For example, employers offer their workers rewards based on their interests, such as free sports tickets or live shows. They wine and dine employees and work to show them a good time outside of working hours. Another approach many top companies take is to offer quality employees more paid time off and flexible working arrangements.
Workspace costs
Working with a global team helps cut down on costs surrounding real estate, utilities, cleaning, office furniture, etc. In short, remote-first work can save you a ton. However, it is a good idea to put aside some money for your distributed team members' workspaces.
Many companies offer their remote employees a budget for their home office or set them up in a coworking space. These membership-based workspaces have been proven to help employees thrive and are available throughout Turkey’s big cities.
Save with Borderless
Sign up with Borderless to learn everything you need to know about hiring in Turkey. Our intuitive platform and dedicated team will make sure you take care of your new teammates and maintain compliance every step of the way. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
