If you are a foreigner working in Türkiye or managing a business here, it’s crucial to understand how wages must be paid under Turkish Labour Law. This guide explains the key rules, legal requirements, and rights regarding wage payments to help you stay compliant and protect your interests.
What Is Considered a Wage under Turkish Labour Law?
Article 32 of the Turkish Labour Law No. 4857 defines a wage as the monetary payment made by the employer or third parties in return for work performed by the employee. The essential point is that wages must be paid in money and in exchange for actual work performed.
How Must Wages Be Paid?
Under Turkish law, wages must always be paid in cash. Payments through non-monetary means—such as promissory notes, vouchers, or other instruments claiming to represent money—are not legally valid.
Is It Mandatory to Pay Wages through a Bank Account?
Yes, for most employers, wage payments must be made through bank transfers. Since 2008, wages, bonuses, and similar payments are required to be paid via specially designated bank accounts in Turkish Lira.
If the employment contract allows payment in foreign currency, employers may still pay in Turkish Lira using the official exchange rate on the payment date.
Which Employers Are Required to Use Bank Transfers?
The obligation to pay wages via bank accounts depends on factors such as the company size, number of employees, and location. This requirement is established under regulations jointly issued by the Ministry of Labour and Social Security and the Ministry of Treasury and Finance.
Employers subject to these rules are prohibited from paying wages in cash.
When Must Wages Be Paid?
Employers must pay wages at least once a month. However, through employment contracts or collective labour agreements, this payment period may be shortened to one week.
Upon termination of employment, employers are required to pay all outstanding entitlements immediately and in full.
Can Wages Be Paid in Vouchers or Tokens?
No. Turkish Labour Law prohibits wage payments through vouchers, tokens, or similar non-monetary tools. Payments must be made in cash and in accordance with legal requirements.
Where Is It Prohibited to Make Wage Payments?
Wages cannot be paid in taverns, bars, or similar entertainment venues, nor in retail shops—except for employees who actually work at those locations.
What Is the Statute of Limitations for Wage Claims?
Employees have five years to claim unpaid wages. After this period, legal claims regarding wage payments are no longer valid. It’s essential for employees to take timely action to secure their rights.
What Happens If an Employer Pays Wages Outside the Banking System?
If an employer who is legally required to pay wages via bank transfer instead pays in cash or by other means, this is considered a violation of the law. Such actions can result in legal penalties and administrative fines.
Understanding Turkish labour law requirements can be complex, especially for foreign businesses and employees. For tailored advice or assistance with wage compliance, feel free to contact us.
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Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
