At Remote People, we ensure all employee payments are fully compliant with Turkish employment and payroll regulations.
Under Article 32 of the Turkish Labour Law and Decree No. 32 on the Protection of the Value of Turkish Currency, salaries for employees in Turkey must generally be paid in Turkish Lira (TRY).
This means that, as an Employer of Record (EOR), Remote People pays employees in Turkish Lira in accordance with local law.
Can salaries be fixed in USD or EUR?
Yes.
Although salary payments must be made in Turkish Lira (TRY), the salary itself can be contractually fixed in USD or EUR.
This is a common and compliant approach in Turkey, particularly in periods of high inflation. By fixing the salary in a foreign currency, employers can help protect employees' purchasing power while ensuring payroll remains fully compliant with local legislation.
For example:
Employment Agreement salary: USD 3,000 per month
Monthly payroll payment: The equivalent amount in TRY, calculated using the agreed exchange rate methodology.
This provides employees with the stability of a fixed USD or EUR salary while ensuring payments are made in the legally required local currency.
Setting up a USD- or EUR-indexed salary
If you would like to protect an employee's salary against inflation, Remote People can support a USD- or EUR-indexed salary arrangement.
To implement this:
The Employment Agreement must specify the fixed monthly salary in USD or EUR.
The agreement must also clearly state that salary will be paid in Turkish Lira (TRY).
For new employees, this request should be raised during the onboarding process with Remote People.
For existing employees, clients must raise an amendment request on the Remote People platform. An amendment must be signed.
This approach allows you to offer employees the certainty of a stable USD or EUR salary while remaining fully compliant with Turkish employment regulations.