Talent has no borders. You can find skilled professionals in countries all over the world, including Turkey. However, hiring from abroad requires strict adherence to local laws and regulations. Failing to comply can bring on a slew of legal issues. That’s where an EOR comes in.
Hiring global remote talent on your own can be challenging, though. An Employer of Record (EOR) offers a simple and straightforward way to hire and pay global talent legally. It provides everything you need to hire, onboard, and manage full-time employees. Let’s explore how you can tap into Turkey’s talent pool effectively.
Why Hire Talent in Turkey?
Turkey has a highly educated and skilled workforce, with many workers fluent in English and other languages. This can be advantageous for businesses that require multilingual support or specialized skills.
Turkey is in a favorable time zone for businesses operating in Europe and the Middle East. This can enable remote workers to work during business hours for those regions, increasing productivity and improving communication.
Employees in Turkey are exposed to a diverse culture influenced by both Eastern and Western traditions. This can make Turkish remote workers an excellent cultural fit for businesses that operate globally and require a workforce with a broad perspective.
The Turkish government has taken steps to support the growth of the remote work industry. This includes providing incentives for businesses that hire remote workers and investing in digital infrastructure.
Hiring remote workers from Turkey can be cost-effective for businesses, as labor costs are generally lower than in Western countries. Additionally, remote workers do not require office space or equipment, which can further reduce costs.
How Can I Legally Hire an Employee in Turkey?
Things can get complicated if you want to hire talent in Turkey on your terms. To hire in Turkey, businesses must establish an entity based in the country. The process can be a headache and is only worthwhile if you intend to practice business in Turkey long-term.
EORs offer an easy, straightforward way to hire full-time employees from Turkey. An EOR, like Borderless, serves as a middleman and facilitates the processes involved in global hiring. EORs already have an entity in place that’s capable of hiring talent, onboarding them, and ensuring local compliance.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations in the countries you hire talent from. They remove the legal roadblocks involved in hiring globally so that you can focus on growing your business. Hiring laws vary considerably worldwide, and while it’s challenging to keep up with constantly changing regulations, it’s critical to comply with them to avoid legal implications. EORs take care of the following processes and ensure they’re fully compliant:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate compliant employment contracts, collect tax documentation, file it per local laws, etc.
Employee Insurance and Benefits
Staying competitive is always important, especially in a tight labor market. An EOR will help you stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off, financial security, and much more. It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
According to Turkish law, employees are entitled to a certain amount of paid vacation leave based on their length of service:
- Employees who have worked for less than one year are entitled to 14 days of paid vacation leave.
- Employees who have worked for one to five years are entitled to 20 days of paid vacation leave.
- Employees who have worked for more than five years are entitled to 26 days of paid vacation leave.
Vacation leave can be taken in one or more periods, depending on the employer and employee agreement. However, at least two weeks of vacation leave must be taken continuously.
Employees are also entitled to additional paid leaves and can take public holidays off.
The official government calendar, which includes both national and religious holidays, determine the public holidays in Turkey.
- January 1: New Year's Day
- April 23: National Sovereignty and Children's Day
- May 1: Labor and Solidarity Day
- May 19: Commemoration of Ataturk, Youth and Sports Day
- Varies: Ramadan Feast
- July 15: Democracy and National Unity Day
- Varies: Sacrifice Feast
- August 30: Victory Day
- October 29: Republic Day
It's important to note that the dates for religious holidays, such as Ramadan Feast and Sacrifice Feast, may vary depending on the lunar calendar. Some businesses and organizations may also observe local holidays not included in the official government calendar.
Taxes & Social Security Contributions
In Turkey, income taxes and social security contributions are deducted from an employee's salary and paid by the employer to the relevant authorities. Here's a brief overview of how they work:
Income taxes are progressive, meaning that the tax rate increases as income increases. There are four income tax brackets in Turkey, ranging from 15% to 35%. The tax rate is applied to the employee's taxable income, which is calculated by subtracting certain deductions and exemptions from their gross income. The employer is responsible for deducting income tax from the employee's salary and paying it to the tax authorities every month.
Social security contributions are paid by both the employer and the employee and are used to fund social security programs, such as healthcare, retirement, and disability benefits. The employee's share is deducted from their gross salary and the employer pays an additional amount on top of this.
It's important to note that there are certain exemptions and deductions available for both income taxes and social security contributions, which can vary depending on the individual's circumstances. Additionally, the tax and social security systems in Turkey are subject to change, so both employers and employees need to stay up to date on any changes that may affect them.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified, and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Turkey?
Working with an EOR comes with a range of benefits.
- Saves time and money
- Minimizes risks and avoids penalties related to non-compliance
- Cuts back on busy work
- Improves retention and talent attraction
- Expands your talent pool
- Keeps your data safe and secure
- Keeps you up to date on hiring trends
These are just some of the ways an EOR can positively impact your business. Sign up with Borderless to explore what an EOR can do for you.
How Do I Choose the Right EOR for Me?
With so many EORs to choose from, it’s important to determine which one suits your individual needs. It’s helpful to keep the following considerations in mind.
- Expertise: Choose an EOR with a history of hiring, onboarding, and managing employees in the countries you want to hire from. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform packed with self-service options. The goal is to integrate it into your team's existing workflow, stress-free.
- Support: Turn to EORs with a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when working with a globally distributed team, leaving you more vulnerable to cyberattacks. So, choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record Your Company Needs
Broaden your horizons by hiring global talent. Use Borderless as your EOR of choice to expand your talent base and get the most out of your global hiring experience. Get in touch and 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.
