LABOUR LAW & EMPLOYMENT
Turkey has become one of the best opportunities for investment in the case of labor law.
Investment-related laws are equal for all the investor’s sake. Furthermore, there is a special provision for regulating the employment and residence permit of foreigners who are interested in working in Turkey.
To encourage investment in Turkey, Employment Law No. 5084, Foreign Direct Investment Law No. 4875 are basically in effect.
With those labor laws, the rights of the employees are secured.
Preceding the initiation of the work, the recently settled organizations in Turkey should be enrolled with the local labor office as a business.
Besides, the employee should notify the Social Security Institution (SSI) about every worker that he/she has hired.
Under these laws, every employee gets secured from the primary day of work. Workers should make sure that employees’ and employers’ commitments to Social Security are paid each month.
The manager needs the SSI Premium that is approximately 34.5 percent and Unemployment Social Security Fund that is around 2 percent on the gross compensation.
Additionally, under the arrangements of Income Tax Law, employment’s salary is taxed through withholding. Before dispensing the salary, employers need to withhold the income tax.
Annual income tax rates are as follows for 2021:
- Up to 24.000 TRY 15%
- Between 24.000-53.000 TRY 20%
- Between 53.000-190.000 TRY 27%
- Between 190.000-650.000 TRY 35%
- 650.000 TRY and Above 40%
Additional time work is characterized as the functioning hours surpassing 45 hours in a week. Wages that will be paid for overtime working are determined by expanding the hourly typical working pay by 50% for every hour. The limit for overtime work is 270 hours each year.
Employees are not expected to work for more than 45 hours a week. So long as the daily work limit does not pass 11 hours, working hours can be modified. There should be a one-day holiday every week.
As of 2021, the gross minimum wage has increased to 3,577.5 TRY (approximately $447).
High skilled workers’ wage depends on the area and personal abilities, which is frequently similar with EU Countries depending upon the position. In any case, the wages of less-gifted laborers and new graduates are lower.
In case, there are more than 50 people working in a company, the employers need to employ disabled and ex-convict employees as well.