As of 1 October 2024, the minimum salary requirements imposed by the General Directorate of International Labour Force of the Ministry of Labour and Social Security in Türkiye have been reduced.1 In addition, new updates have been made to the requirements for employers that will sponsor work permits.
WHY THIS MATTERS
Employers may need to reassess their recruitment strategies and policies with respect to the revised wage requirements for foreign national workers and expats. This change is likely to be positive for employers and encourage the recruitment of foreign national workers.
Old Requirements
Before 1 October 2024, the minimum salary thresholds for foreign workers in certain categories were as follows:
- 6.5 times the gross minimum wage for foreign nationals titled as senior manager and/or for those similarly defined in their job description and for pilots (TRY 130,016.25);
- 4 times the gross minimum wage for foreign nationals titled as unit and/or department manager and engineers and architects (TRY 80,010.00);
- 3 times the gross minimum wage for foreign nationals who will be employed in professions that require expertise and mastery as well as those emplopyed as teachers (TRY 60,007.50);
- 2 times the gross minimum wage for foreign nationals who will be employed in a tourism-animation organisation firm and as SPA therapists (TRY 40,005);
- At least the gross minimum wage for foreign domestic workers (male foreign nationals cannot be employed for childcare) (TRY 20,002.50).
Updated Requirements
As of 1 October 2024, the minimum salary thresholds for foreign national workers in certain categories are as follows:
- 5 times the gross minimum wage for those titled as senior manager and/or for those similarly defined in their job description and for pilots (TRY 100,012.50);
- 4 times the gross minimum wage for engineers and architects (TRY 80,010);
- 3 times the gross minimum wage for those titled as unit and/or department manager (TRY 60,007.50);
- 2 times the gross minimum wage for those titled as experts or specialists and employed in areas that require expertise and mastery (TRY 40,005);
- At least the gross minimum wage for foreign national domestic workers (male foreign nationals cannot be employed for childcare) (TRY 20,002.50).
As can be observed from the comparison shared above, the minimum salary threshold for experts and specialists has declined, making employing foreign national workers in relevant positions more appealing.
New requirements for employers seeking to sponsor foreign nationals will include:
Capital Requirements:
- New businesses/start-ups: Minimum paid-in capital of TRY 500,000 (approx. USD 14,600) is required when hiring foreign nationals. If the foreign national is a partner, he or she must also invest at least TRY 500,000 and hold a minimum 20-percent share.
Established businesses must meet one of the following criteria:
Ø Minimum paid-in capital of TRY 500,000;
Ø Net sales of at least TRY 8,000,000 (approx. USD 233,600);
Ø Minimum exports valued at USD 150,000 (approx. TRY 5,131,500).
Employment of Turkish Nationals:
Employers must hire at least five Turkish citizens for every foreign national employed. However, exemptions apply:
- High-revenue companies: Those companies with revenues of at least TRY 50,000,000 (approx. USD 1,460,000) are exempt for the first five foreign national employees (the requirement applies only from the sixth foreign national employee onward).
- Partnering foreign nationals: Exempt if the individual contributes capital of at least USD 100,000 (approx. TRY 3,421,000).
Certain sectors may also be exempt from capital and employment requirements, including information technology, education, aviation, health, tourism, and domestic services (e.g., babysitters, caretakers). Additional exemptions may apply for roles requiring expertise in advanced technology and public projects.
KPMG INSIGHTS
The Turkish Ministry of Labour has regulations set in place for work permit applications. The main regulation there is the salary requirements. The Ministry has put in place certain thresholds in terms of salary in accordance with the specific job title and the thresholds are decided on as multiples of the current gross minimum wage.
Once the work permit application is submitted, depending on the job title and the salary threshold that has to be met, the Turkish employer is legally mandated to pay the exact amount listed during the application.
In the event where the salary is lower or higher than the one listed on the application, and that gets determined by the Ministry of Labour, both the employer and the employee will be held liable as it will be considered as giving false information. Penal and monetary fines may be applied to both parties.
It should be noted that these minimum wage multiples are calculated based on the current gross minimum wage of TRY 20,002.50 as of October 2024, and it should be taken into account that these amounts will be updated with the new minimum wage increase in the new year.
Footnote:
1 See (in Turkish) the website for Uluslararası İşgücü Genel Müdürlüğü (General Directorate of International Labour Force) at: https://www.csgb.gov.tr/uigm/calisma-izni/calisma-izni-degerlendirme-kriterleri/.
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TRY 1 = USD 0.0287
TRY 1 = EUR 0.0274
TRY 1 = GBP 0.0227
TRY 1 = CHF 0.025
Source: www.xe.com
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* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Türkiye.
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