Omniums bill (colloquially known bag law) No. 7103, issued in Official Gazette No. 30373, dated 27th March 2018, brings about new arrangements regarding employment incentives and supports, some of which are briefly explained below.

2018 Turkey Fact Sheet

2018 fact

Our “Turkey Fact Sheet” booklet combines the answers to all the questions you might have as a foreign employee or executive doing business in Turkey

Read from here.

Minimum Wage for Senior Employees Against the Ordinary Course of Events

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Supreme court ruled that paying minimum wage to an employee whose length of service is over six years in the workplace is against the normal course of events and that a precedent fee shall be determined for such employees.


  • Labor Law 4857: Wage is in general terms, the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him.
  • Income Tax Law 193: Wage is a benefit provided by cash in kind and cash, represented by cash, in return of services performed by employees registered and subject to an employer.
  • Turkish Constitution: Wages shall be paid in return for work. The state shall take the necessary measures to ensure that workers earn a fair wage commensurate with the work they perform and that they enjoy other social benefits.

Release Agreement in Employment Relations

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A “Leaver General Release” is a written and signed declaration obtained from the employee whose employment contract is terminated, showing that employee has been received all his due rights and releases and discharges the employer for any claims he may have as a result of the termination.

The release document aims at preventing further litigation process.

When an employment contract is terminated, employee shall be paid his severance pay, basic wages, overtime earnings, wages for weekly rest days and national or general holidays, annual leave remuneration and any other receivables due as of the date of leave.


Release agreement is arranged in article 420 of Turkish Code of Obligation No. 6098.

For preparing a valid agreement the following points should be taken into consideration:

  • It should be in written form
  • All receivables of employee with their names and amounts should be included in the agreement, such as;

ü  Severance pay

ü  Notice pay

ü  Wages, all supplements to basic wages

ü  Overtime earnings

ü  Wages for weekly rest days and national or general holidays

ü  Annual leave remuneration and any other receivables due as of the date of leave.

  • Payment must be done through the bank.
  • For preparing and signing a release agreement at least one month period must passed the date of termination of the contract.


As it is seen below release agreement can only be concluded after at least one month period have passed the date of termination. This rule causes a problem for the employer, because after one month of termination it cannot be easy to find the employee.

Even it may be difficult to find the leaver after one month he has left, employer has to comply with this rule for a valid release agreement.

Things to Know About Severance Pay in Turkey

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Severance pay is a compensation that should be paid by the employer in case of termination of employment contract under certain condition.

Severance payment is arranged in article 14 (still in effect) of Former Labor Law no. 1475.  

An employee who has worked at least one year is entitled to severance pay under the following conditions;

  • Where employee terminates the contract for  just cause, such as for reasons of health, immoral or dishonorable conduct by the employer and force majeure
  • Where Employer terminates the contract without a valid reason (the reasons other than for malicious, immoral or dishonorable conduct or other similar behavior specified in Labor Act)
  • Leaving the workplace due to the compulsory military service (for males)
  • Leaving in order to receive an old age pension, pension fund or disability insurance pension or to receive a lump-sum payment from the statutory institutions or retirement funds
  • Leaving voluntarily in order to receive partial pension (after completing 3,600 premium days and 15 years of insurance period - a document must be submitted to employer from the social security agency stating that he has worked for the period).
  • Where the female employee terminates the contract voluntarily within one year following the date of marriage
  • In  case of death of the employee

Withholding Tax and SSI Premiums will be Declared a Single Form


Executive Summary

Starting from January 2018 withholding tax returns and SSI e-declarations will be combined in a single form under the name of "Withholding Tax and Monthly Premium Service Document;” and SSI premiums and taxes withheld from employees declared only to the tax offices until the 23rd of the following month.

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