An employer of record in Turkey legally employs a worker on your behalf: it issues the Turkish employment contract, runs payroll in lira, remits income tax withholding and social security, and carries the local employer obligations for a company with no Turkish entity. The employer cost stack matters here, because Turkish social contributions are substantial and are calculated against a monthly earnings cap that moves with revaluation.
The employer cost stack
PwC's current summary puts the general social security contribution at 20.75% of capped earnings for the employer, commonly reduced to 16.75% where incentive conditions are met (with a larger reduction for manufacturing), alongside 14% for the employee. Unemployment insurance adds 2% employer, 1% employee and 1% state. Contributions are calculated up to a monthly earnings cap, TRY 297,270 as of the start of 2026, so the marginal cost of high salaries flattens once pay clears the cap. An EOR quotes these as part of total employer cost; the arithmetic should be visible in the quote, not folded invisibly into a fee.
What the EOR carries in Turkey
The EOR is the registered Turkish employer: it maintains the social security registration, files monthly declarations, applies the correct incentive rate where eligible, and manages statutory entitlements under Turkish labour law such as paid leave and severance mechanics. Turkey also has no minimum-presence threshold before a foreign company's own activity can be treated as a permanent establishment, which PwC notes must be evaluated case by case; hiring through an EOR keeps the employment itself off that analysis, though sales activity can still create exposure on its own.
EOR or your own Turkish entity
For one to a handful of hires, the EOR's monthly fee is usually well below the cost of incorporating, registering for payroll and retaining local advisers, and it can be wound down without a liquidation. The crossover comes with scale, or when the business needs to invoice locally and hold assets in Turkey, at which point an entity plus a payroll processing provider becomes the cheaper structure. The vendors on this site are compared on verified pricing and evidenced Turkey coverage, and the policy and contract documents always control; nothing here is legal or tax advice.
Questions people ask about employer of record turkey
What does an employer cost on top of gross salary in Turkey?
Social security of 20.75% (often reduced to 16.75% with incentives) plus 2% unemployment insurance for the employer, per PwC's summary, calculated on earnings up to the monthly cap.
Is there a cap on Turkish social contributions?
Yes. Contributions are calculated on earnings up to a monthly ceiling, TRY 297,270 as of the start of 2026, so contributions stop growing beyond that pay level.
Does hiring through an EOR avoid permanent establishment in Turkey?
It keeps employment compliance off your books, but Turkish PE analysis is case by case with no minimum presence period, so revenue-generating activity needs its own tax advice.