I. Overview of Salaries and Benefits inTurkey
1. Wage Levels
Turkey has middle income levels compared to Europe but higher wages than the Middle East. Average salaries were around3,500 Lira ($450) in 2019.
2. Salary Composition
Turkish salary packages typically include basic wages, allowances and bonuses. Basic wages are fixed while allowances and bonuses vary by performance.
3. Social Security
Turkey's social security comprises health insurance, pensions and unemployment benefits, jointly funded by employers and employees.
4. Taxes
Personal income tax in Turkey has four brackets from 15% to 35%. Value-added tax and corporate tax also apply.
II. Details on Turkish Salaries and Benefits
1. Leave
Turkish law provides 14 days of paid annual leave. Public holidays like New Year's, Labor Day and religious celebrations are also observed.
2. Benefits
Benefits include health, retirement, unemployment, work injury and maternity insurances, jointly covered by employers and staff.
3. Bonuses
Bonuses are of two types – year-end payments as a portion of annual income, and profit-sharing based on company performance.
4. Allowances
Common allowances in Turkey include transport, meal and housing subsidies based on employee needs.
5. Other Benefits
Other Turkish benefits include training, healthcare, sports and social activities to improve engagement and loyalty.
III. Developing Suitable Compensation for Turkish Employees
1. Understand Culture and Laws
Employers should learn about Turkish culture and laws to develop compliant compensation policies.
2. Consider Employee Needs
Understanding required allowances and benefits helps tailor rewards to employees.
3. Implement Performance Reviews
Performance reviews help determine bonuses and promotions based on merit.
4. Collaborate with Local Experts
Partnerships with local professionals provide insights into markets and regulations.
Conclusion
The above summarizes what overseas employers should know about compensation in Turkey, including salary composition, social security, taxes and developing locally-aligned pay and benefits through performance management and expert help.