Frequently Asked Questions about Investing in Izmir

Working Conditions in Turkey 2025:

Minimum Wage, Employer Costs, and Labor Rights

Situated at the crossroads of Europe, Asia, and Africa, Turkey combines strategic location, a young workforce, and growing economic potential. If you plan to invest, work, or hire employees in Turkey, understanding the country’s 2025 labor laws, tax system, and wage structure is essential.

Minimum Wage and Total Employer Cost (2025 Updated Figures)

As of January 2025, the gross minimum wage in Turkey is 26,005.50 TRY, while the net minimum wage received by employees is 22,104.67 TRY.

Including the employer’s contributions to social security (15.75%) and unemployment insurance (2%), the total monthly cost per employee is 30,621.48 TRY.

Approximate currency equivalents (subject to exchange rate fluctuations):
– Net minimum wage: around 625–630 USD
– Total employer cost: around 875–900 USD

The Minimum Wage Determination Commission reviews and sets the national minimum wage every year. The increase typically follows the inflation rate and economic growth indicators. For 2025, the official minimum wage increase was 30%, in line with market expectations.

Minimum wage updates are implemented annually, taking effect from January 1st and remaining valid throughout the year.

Additional Employee Benefits

Benefits such as meal cards, transportation allowances, or private health insurance are not mandatory under Turkish labor law. However, many employers voluntarily offer these perks to improve workplace satisfaction and retain talent in competitive sectors.

Overtime Regulations

  • The standard weekly working limit for employees in Turkey is 45 hours. Any work performed beyond this limit is considered overtime and must be compensated at 1.5 times the regular hourly wage.
  • If a contract specifies fewer than 45 weekly hours, additional hours up to 45 are paid at 1.25 times the regular rate.
  • Employee consent is mandatory for overtime work.
  • The maximum annual overtime allowed by law is 270 hours.

Annual Leave, Maternity Leave, and Other Employee Rights

Employees who have worked for at least one full year (including the probation period) are entitled to annual paid leave.

Annual paid leave entitlement:
– 14 days for 1–5 years of service
– 20 days for 5–15 years
– 26 days for more than 15 years

Maternity leave totals 16 weeks — 8 weeks before and 8 weeks after childbirth. Employees may also request up to 6 months of unpaid leave after maternity or for military service.

Breastfeeding leave:

Female employees with children under one year old are entitled to 1.5 hours per day, counted as part of the regular working time.

Setting Up a Company in Turkey

Establishing a Limited Liability Company (“Limited Şirket”) in Turkey involves:

– Preparing articles of association (notary approval)
– Registration with the Trade Registry and Chamber of Commerce
– Publishing the registration in the Trade Registry Gazette
– Depositing 0.04% of the company’s capital to the Competition Authority

Employing Foreign Workers in Turkey

Free zones: Work permits are issued by the Ministry of Trade.
Other sectors: Permits are issued by the Ministry of Labor and Social Security, valid for up to one year and extendable to three or six years.
Foreigners who legally reside in Turkey for 8 years or have worked for 6 years may apply for indefinite work permits.
Applications must be submitted electronically and are typically processed within 6–15 business days.

This streamlined process makes Turkey increasingly accessible for foreign investors and professionals.

Taxation in Turkey (2025)

Corporate Tax:  25%
– Income Tax (for wages):
– 15% up to 158,000 TRY
– 20% for 158,001–330,000 TRY
– 27% for 330,001–800,000 TRY
– 35% for 800,001 – 4,300,000 TRY – %40 for income above 4,300,000 TRY

Why Work and Invest in Turkey?

Turkey offers affordable labor, a strategic geographic position, and access to multiple international markets. With modern infrastructure, transparent regulations, and an increasingly skilled workforce, Turkey remains one of the most dynamic and investor-friendly economies in its region.

Start Your Business in Turkey with Confidence.
Our experienced lawyers handle all legal procedures for company formation, residence, and work permits — from start to success.
👉 Contact Ateskan Law today for tailored legal support.

Call: +90 (544) 288 5280

e-mail: yusuf@ateskanlaw.com


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