Umbrella Company Turkey

FAQ – Employer of Record, Umbrella Company & Payroll in Turkey

If you are planning to hire an employee in Turkey, you probably have many questions. Do I need to open a company? Who will employ my employee? How does payroll work? What happens if the employee leaves? Can I pay a salary in Euro? What about work permit?

We tried below to answer the questions we receive the most from foreign companies.

Our company provides Employer of Record (EOR), Umbrella Company, payroll and HR services in Turkey for international companies who have employees, or plan to hire employees, in Turkey.

And importantly, our job is not only to make a payslip every month. We also support our clients and employees on the daily HR questions that inevitably happen when you employ somebody in another country.

HIRING AN EMPLOYEE IN TURKEY

1. How can a foreign company hire an employee in Turkey?

There are basically two main possibilities.

You can establish your own company in Turkey and employ the person directly, or you can use a local Employer of Record / Umbrella Company.

In the second situation, our company employs the employee locally in Turkey on your behalf.

You manage the employee’s daily work, objectives and responsibilities. We manage the local employment side: contract, payroll, social security, HR administration and the other local requirements.

For one employee or a small team, it can be much easier than opening a company only for hiring somebody.

Yes.

This is actually one of the main reasons why international companies contact an Employer of Record in Turkey.

You don’t necessarily need to create a Turkish subsidiary just because you found a good candidate in Istanbul, Ankara, Izmir or another Turkish city.

Our company can become the local employer while you remain responsible for the employee’s operational activities.

Yes, and actually this is a very common situation.

Imagine a German, French, British or American company finds a sales manager in Istanbul.

Opening a complete Turkish company, arranging accounting, payroll, bank accounts and administration just to employ one person may not always make sense.

An EOR can be a practical solution.

If later you employ 20 or 30 people in Turkey, of course the question can be different and establishing your own subsidiary may become interesting.

We can discuss this with you honestly depending on your situation.

Yes.

You can start with one employee and increase your team afterwards.

There is no obligation to create your own company just because your Turkish team is growing, although at some stage it can become financially or strategically interesting to study this option.

Of course.

Many of our clients already know who they want to employ.

They send us the information about the candidate, salary, benefits, job position and expected starting date and we organize the local employment process.

Our company can also assist with recruitment in Turkey.

This means you can use the same local partner for:

Recruitment → Salary discussion → Employment → Payroll → HR management.

It avoids having a recruitment company on one side, payroll provider on another side and an EOR company somewhere else.

EMPLOYER OF RECORD IN TURKEY

7. What exactly is an Employer of Record in Turkey?

An Employer of Record, generally called EOR, is the local company which legally employs a worker on behalf of another company.

For example:

Your company is located in France.

You want a Business Development Manager in Istanbul.

You don’t have a Turkish company.

Our company hires this Business Development Manager locally.

Your company manages his/her business activity and our company manages the Turkish employment, payroll and administrative side.

Simple.

EOR means Employer of Record.

You may also find expressions such as:

  • Employer of Record Turkey

  • EOR Turkey

  • Umbrella Company Turkey

  • PEO Turkey

  • Payroll Turkey

  • International Payroll Turkey

  • HR Outsourcing Turkey

The terminology is not always used in exactly the same way by every provider.

What is important is to understand exactly who employs the worker and which responsibilities are managed by each party.

The expressions are frequently used for similar international employment solutions, although technically they are not always exactly the same thing.

In practical terms, international clients generally contact us because they have the same problem:

“We need somebody working in Turkey but we don’t have a company there. How can we employ him?”

This is the problem our EOR / Umbrella Company solution is designed to solve.

Not exactly.

PEO means Professional Employer Organization.

Depending on the country, PEO arrangements can involve different legal structures and responsibilities.

For international companies looking to employ somebody in Turkey without their own local entity, Employer of Record is generally the clearest terminology.

HOW DOES EOR WORK?

11. Who is legally employing the employee?

Under our EOR arrangement, our local company is the contractual employer.

The employment relationship is documented locally and payroll is managed in Turkey.

You do.

You normally decide:

  • what the employee does;

  • their objectives;

  • projects;

  • customers;

  • meetings;

  • reporting structure;

  • commercial targets;

  • etc.

Our company takes care of the local HR and administrative employment environment.

The salary is processed through our company as local employer according to the agreed EOR arrangement.

Payroll calculations and the applicable social and tax obligations are managed locally.

Our payroll team manages the monthly payroll and the employee receives the corresponding Turkish payroll documentation.

As part of the employment process, the required Turkish social security administration is handled locally.

This includes the employee’s SGK employment administration and the payroll-related social contributions applicable to the employment.

HOW FAST CAN WE HIRE?

16. We found someone today. How quickly can we hire him?

It depends on the situation.

For a Turkish employee with a complete file, onboarding is normally much easier than for a foreign employee requiring a work permit.

Before promising a date, we first check the employee documentation and the requested employment conditions.

We prefer giving a realistic answer after checking the file rather than promising an impossible starting date.

It depends on the employee.

Typically we will need identification information, address and banking information and the documents required to create the employment and payroll file.

For a foreign national, additional documents can be required for immigration and work permit purposes.

We provide the exact list according to the situation.

PAYROLL IN TURKEY

18. Can you manage payroll in Turkey?

Yes.

Payroll management is one of our core activities.

We can manage payroll as part of an Employer of Record arrangement, but payroll outsourcing can also be relevant for an international company which already has its own Turkish subsidiary.

Yes.

You don’t need an Employer of Record if your Turkish company already employs the employees itself.

In this case, you may simply need a Turkish payroll provider.

Our team can support international HR and finance departments with local payroll administration.

International headquarters normally need payroll information they can actually understand.

Our objective is therefore not simply to process Turkish payroll, but also to make the information understandable for the international HR or finance team managing the employees.

Yes, bonuses and variable remuneration can be processed according to the applicable payroll and tax treatment.

Before implementing a bonus plan, it is always useful to discuss it with us.

Sometimes a client tells us:

“We want to give EUR 5,000 to the employee.”

Our first question will be: is this supposed to be gross, net, a contractual bonus, exceptional bonus, commission, etc.?

These details matter.

Yes.

Sales commissions can be integrated into payroll according to the agreed remuneration structure and applicable rules.

Yes.

Employees working in sales, engineering, consulting or field positions often have professional expenses.

These can include hotels, transportation, customer meetings, taxis and other legitimate business expenses.

The expenses need to be documented and treated according to the applicable rules.

SALARY IN TURKEY

24. We don't know what salary to offer in Turkey. Can you help?

Yes, and this is a question we receive very often.

A company may tell us:

“We found a good engineer in Istanbul and he is asking for 150,000 TRY. Is that normal?”

This is exactly the kind of practical question where a local HR team is useful.

We can discuss the position, experience, sector and candidate expectations with the client.

This is something that should be made very clear during recruitment.

The client, candidate and payroll provider need to understand whether the salary discussed is gross or net and how the compensation package is structured.

Otherwise misunderstandings can happen very quickly.

Yes.

The structure should simply be agreed clearly between the parties and handled correctly through payroll.

There is no universal package.

It depends on the position, seniority, sector and company.

Possible benefits can include:

  • meal support;

  • transportation;

  • private health insurance;

  • bonus;

  • commission;

  • company car;

  • phone;

  • additional holidays;

  • remote working support.

But giving every employee every benefit is obviously not necessary.

We can discuss what makes sense for the position.

Private health insurance can be an important benefit, particularly for professional and managerial positions.

Whether it should be included depends on the employee profile and the client’s benefits policy.

Sometimes yes, sometimes absolutely not.

If the employee visits customers, factories or sites regularly, a vehicle may be relevant.

If the person works mainly remotely and meets customers occasionally in central Istanbul, maybe not.

This is why we don’t believe HR should only be a list of standard packages.

A HUMAN HR SERVICE, NOT ONLY PAYROLL

30. Are you just processing the payslip every month?

No.

And for us this is an important difference.

A payslip is only one small part of managing an employee.

Real HR questions appear during the year.

“My employee is asking for a 25% salary increase. Is it reasonable?”

“The candidate refuses our offer. What should we change?”

“Our employee doesn’t get along with his manager in Germany.”

“The employee wants a company car.”

“We want to terminate somebody. What should we do?”

“The employee says our communication is too aggressive.”

These questions cannot always be solved by clicking a button on a payroll platform.

Our clients can contact our team to discuss them.

Yes.

We believe this is particularly important when managing employees in another country.

Sometimes an email is enough.

Sometimes a 10-minute phone call solves a problem that would otherwise generate 20 emails between the employee, headquarters and payroll.

Yes.

Employees naturally have questions about payroll, documents, benefits, leave or their employment situation.

They can communicate with our local team rather than asking the international HR department to understand every Turkish administrative issue.

First, we try to understand what is actually happening.

Not every disagreement is a legal problem.

Sometimes it is a management problem.

Sometimes cultural.

Sometimes salary.

Sometimes simply bad communication.

Because we are in contact with both the international client and the local employee, our team can sometimes help clarify the situation before it becomes a bigger problem.

Our role is to support the employment relationship, not simply say yes to everything.

If we believe a requested action creates an HR or employment issue, we explain it.

In the same way, if an employee has an unrealistic request, we can explain the employer’s position.

The objective is to facilitate the relationship.

Yes.

Employees sometimes have questions which are not purely administrative.

For example:

“How should I speak to my manager about my salary?”

“I don’t understand why headquarters is asking me this.”

“I have a problem with my manager.”

When appropriate, our HR team can listen, explain the context and help communication.

Of course the management decision remains with the client.

Because an EOR is employing a human being, not a payroll number.

This sounds obvious, but sometimes it gets forgotten.

A good employment relationship requires communication between the employee, local employer and international company.

RECRUITMENT IN TURKEY

37. Can you recruit employees for us?

Yes.

Recruitment can be combined with our EOR and payroll services.

Yes.

Depending on the assignment, recruitment can involve database searches, job platforms, professional networks and direct approaches.

For positions where direct search is appropriate, recruitment can include approaching professionals who are not actively applying for jobs.

Yes.

Candidate interviews and pre-selection can be part of the recruitment process before the shortlist is presented to the client.

Yes.

This can actually be one of the most useful parts of local recruitment support.

A candidate may have expectations which are perfectly normal in Turkey but unfamiliar to an HR manager sitting in London, Paris or New York.

And sometimes the opposite is true: the candidate’s request is simply too high.

We can discuss this with both sides.

Yes.

This creates a very simple process:

Find → Interview → Select → Negotiate → Hire → Payroll → Manage.

FOREIGN EMPLOYEES & WORK PERMITS

43. Can you employ a foreign citizen in Turkey?

Potentially yes, subject to the applicable Turkish immigration and work permit rules.

Being physically present in Turkey does not automatically mean that a foreign citizen has the right to work.

The situation should be checked before employment begins.

Foreign nationals generally need appropriate authorization to legally work in Turkey, subject to exemptions and specific situations provided by Turkish legislation.

We recommend checking the individual situation rather than assuming that a tourist or residence status gives a right to work.

Yes, work permit support can be provided as part of our services.

The exact procedure depends on whether the application is made from Turkey or abroad and on the foreign national’s situation.

There is no honest answer that guarantees exactly “X days” for every case.

Timing depends on the application, documents, nationality, authorities and individual circumstances.

We therefore prefer reviewing the case before giving an estimated timeline.

This must be checked according to the person’s actual legal status.

We don’t recommend assuming that submitting an application automatically gives permission to start working.

EMPLOYMENT CONTRACT

48. Who prepares the employment contract?

Under our EOR solution, the local employment documentation is prepared according to the agreed employment conditions and applicable Turkish requirements.

Confidentiality provisions can be included where appropriate.

If the client has specific contractual requirements, they should be discussed before the contract is finalized.

Potentially, but non-compete clauses should not simply be copied from an American, British or French contract.

Their validity and enforceability need to be considered under the applicable Turkish legal framework.

Your international template can be useful for understanding your internal requirements.

However, local employment documentation needs to take Turkish law into account.

Simply translating a foreign contract into Turkish does not necessarily make it appropriate for employment in Turkey.

Remote working can be organized where appropriate, but the arrangement should be properly documented.

HOLIDAYS AND WORKING TIME

53. What are the annual leave rules in Turkey?

Turkish legislation provides statutory minimum annual leave entitlements based notably on length of service and certain employee characteristics.

The employment package can of course provide more favourable leave than the statutory minimum.

An employer can generally provide contractual benefits that are more favourable to the employee than the statutory minimum.

This is quite common when an international company wants employees in different countries to have similar benefits.

Unused annual leave needs to be monitored carefully, particularly when an employee leaves the company.

Our HR/payroll team can help clients understand the employee’s remaining leave balance and its treatment.

Turkish labour legislation regulates normal working time and overtime.

The actual arrangement should also take into consideration the employee’s contract, role and working schedule.

TERMINATING AN EMPLOYEE IN TURKEY

57. Can we terminate an employee whenever we want?

Termination should never be treated as simply clicking “terminate employee” on an HR platform.

The employee’s seniority, contract, reason for termination and applicable Turkish employment rules need to be reviewed first.

We strongly recommend speaking with our team before informing the employee.

There is no single amount.

Possible costs depend on several factors including salary, seniority, unused leave, notice obligations, severance eligibility and the circumstances of termination.

We can prepare a calculation before the client makes the final decision.

No.

Eligibility depends on the circumstances and legal conditions.

This is why each termination should be analysed individually.

Turkish employment law provides notice rules for indefinite-term employment relationships, with statutory periods depending on length of service.

The actual termination situation should be reviewed before action is taken.

Contact us first.

This is probably the shortest answer in this FAQ.

We can review the situation, documentation, possible costs and process before the employee is informed.

It is much easier to organize a termination correctly before something is communicated than to repair mistakes afterwards.

CHOOSING AN EOR IN TURKEY

62. How should I choose an Employer of Record in Turkey?

Don’t look only at the monthly EOR fee.

Ask questions.

Who is actually employing my employee?

Who calculates payroll?

Is the payroll managed locally?

Can my employee speak to somebody?

Who answers my HR questions?

What happens if I need to terminate the employee?

Can they help me recruit a replacement?

Do they understand Turkish HR or are they simply operating software?

The answers can be more important than a difference of a few euros in monthly fees.

Both models can have advantages.

A global EOR can be convenient if you want one platform covering 30 different countries.

A local Turkey specialist can be interesting when Turkey is important to your project and you want direct access to people who deal with Turkish HR and payroll every day.

The right choice depends on your priorities.

Local knowledge.

Not only knowledge of legislation, but knowledge of what actually happens between companies and employees.

What salary is realistic?

What benefits are candidates asking for?

Is this employee request normal?

How should we approach this negotiation?

How will the employee probably understand this message from headquarters?

These are local HR questions.

Size alone does not tell you whether a provider is the right one for your situation.

A company should look at the actual employment structure, local expertise, responsiveness, payroll processes, HR support, data protection, contractual responsibilities and service model.

Ask who will actually manage your employee in Turkey.

This question is surprisingly useful.

International EOR platforms provide multi-country employment solutions and may be appropriate for companies wanting centralized global workforce management.

A Turkey-focused provider follows a different approach: deeper focus on one market and direct local HR support.

The choice depends on whether your priority is global standardization or local depth and direct support.

Compare the complete service, not only the headline monthly price.

Check:

  • EOR fee;

  • payroll administration;

  • onboarding;

  • benefits;

  • expense management;

  • FX or banking costs where applicable;

  • work permit assistance;

  • termination support;

  • HR advice;

  • recruitment capability;

  • response times;

  • local presence;

  • and who actually employs your employee.

Ask for a clear quotation.

EOR COST IN TURKEY

68. How much does an Employer of Record cost in Turkey?

There isn’t one universal price.

The cost depends on the employee, salary, benefits, services required and complexity of the arrangement.

A proper quotation should clearly separate the employment costs from the service fees.

No.

This is an important distinction.

The EOR service fee is not the same as the total cost of employing the worker.

The total budget can include salary, employer costs, benefits, insurance, expenses, bonuses and the EOR service.

Yes.

And we recommend doing this before making the final offer to the candidate.

It avoids the unpleasant situation where headquarters agrees a salary and discovers afterwards that the complete employer budget is different from what they expected.

SETTING UP A COMPANY VS EOR

71. Is it better to open a company in Turkey or use an EOR?

It depends.

For one employee, opening an entire subsidiary may be unnecessary.

For a large permanent operation with many employees, creating your own Turkish entity may eventually make more sense.

There is no reason for an EOR provider to pretend that EOR is automatically the best solution forever.

The right structure depends on your project.

Yes.

This can be a logical market-entry strategy.

You hire the first employee or team through an EOR, develop the Turkish business and, if the operation becomes large enough, evaluate the creation of your own subsidiary.

A transition can be organized, but it needs to be prepared correctly because it involves employment relationships and associated administrative and legal considerations.

The transition should therefore be planned rather than done informally.

HR OUTSOURCING

74. We have a company in Turkey but no HR manager. Can you help?

Yes.

This is another situation where local HR outsourcing can be useful.

Maybe you have five employees in Turkey.

Hiring a full-time HR Manager for five people doesn’t necessarily make sense.

Our local team can support the international HR department with Turkish HR administration and practical local questions.

Yes.

This is generally how international HR outsourcing works.

Your headquarters keeps its HR policies and management structure while our local team provides the Turkish expertise.

Payroll naturally involves both HR and finance.

Depending on the service, our team can provide the payroll and employment information needed by the relevant client contacts.

REAL-LIFE QUESTIONS OUR CLIENTS MAY HAVE

77. My Turkish employee wants a salary increase. Can you advise us?

Yes.

We can discuss the employee’s position, current package, market context and the client’s objectives.

It doesn’t mean we decide the salary.

You decide.

But you don’t have to make the decision without local context.

First, don’t immediately increase it.

Let’s understand why.

Maybe the salary is genuinely below market.

Maybe another benefit is missing.

Maybe the candidate is negotiating.

Maybe expectations are unrealistic.

Recruitment is not mathematics.

Talking to the candidate often tells us much more than a salary table.

Yes.

Sometimes employees are more comfortable explaining a problem to a local HR contact first.

We can listen to the employee, understand the issue and, where appropriate, help facilitate the discussion with the client.

Because our approach is not to reduce Employer of Record to:

Client sends money → provider makes payroll → employee receives payslip.

Of course payroll, contracts, social security and administration are essential.

But there is another part which is just as important: people.

You may need to call us because your candidate is negotiating his salary.

Your employee may call because he doesn’t understand a payroll item.

Your HR Manager may need advice before a difficult conversation.

You may want to know whether a benefit requested by a candidate is normal in Turkey.

Or maybe you have a serious employee problem and simply need to speak with somebody locally who understands what is happening.

This is how we see Employer of Record.

Our company is not here only to employ somebody on paper.

We are here to make the relationship between the international company and its employees in Turkey easier to manage.

One local partner for Recruitment, Employer of Record, Umbrella Company, Payroll, Work Permit and HR support in Turkey.