2024 Update: Critical Changes to Work Permit Applications for Foreigners in Turkey

As of October 1, 2024, significant changes have been introduced to Turkey’s work permit regulations for foreigners. These updates reflect a broader shift in Turkey’s employment landscape, particularly focusing on key criteria such as employment levels, financial thresholds, and salary requirements. With the country continuing to attract foreign talent, both employers and potential foreign workers must now navigate a more structured and demanding process. The recent adjustments aim to streamline foreign employment while safeguarding opportunities for the local workforce.

These new regulations bring more clarity to the expectations placed on companies and their foreign hires, emphasizing stricter financial and employment criteria. For example, companies must now meet higher financial adequacy standards and employment ratios to support their applications. Additionally, salary thresholds have been updated to better align with the responsibilities and expertise of foreign workers, ensuring competitive compensation. Understanding these changes is vital to avoiding application rejections or delays, as compliance has become even more crucial under the 2024 framework.

I. Work Permit Application Methods Remain Unchanged

 Despite the significant changes in work permit criteria, the fundamental methods for applying for a work permit in Turkey remain unchanged. Foreigners can still apply for work permits using one of two primary methods: overseas applications or domestic applications, depending on their residency status in Turkey.

a. Overseas Work Permit Applications:

Foreigners who do not have a valid residence permit in Turkey must apply for a work permit through the relevant Turkish consulate in their home country or country of residence. The process involves submitting all necessary documents to the consulate, which will then forward the application to the Ministry of Labor and Social Security for evaluation. Once approved, the applicant receives a reference number, which their employer in Turkey must use to complete the process through the Ministry’s online application system.

b. Domestic Applications for Foreigners :

Foreigners who have already obtained a residence permit in Turkey valid for at least six months can apply directly to the Ministry of Labor and Social Security. These applications are submitted via the Ministry’s online system, allowing for a more streamlined process compared to overseas applications. However, it is essential that all documentation is complete and accurate to avoid delays or rejections.

While the overall process for submitting work permit applications has not changed with the 2024 updates, it is important to be aware of the new employment, financial, and salary criteria that will apply to these applications.

 II. Updated Employment Criteria

 One of the most notable changes introduced in the 2024 work permit regulations is the updated employment criteria for companies looking to hire foreign nationals. The Ministry of Labor has imposed stricter rules, particularly focusing on the ratio of Turkish employees to foreign employees, with specific exceptions for larger enterprises.

1. General Employment Requirement: As in previous years, companies applying to hire foreign employees must employ at least five Turkish citizens for every foreign worker they seek to hire. This ratio ensures that foreign employment does not disproportionately affect the local workforce, reinforcing the protection of local employment opportunities.
2. Exemption for Large Companies: A new exemption has been introduced for companies with significant financial performance. Businesses that had a net sales turnover of at least 50 million Turkish Lira in the previous year are exempt from the five-Turkish-to-one-foreign-worker rule. This exemption applies for up to five foreign employees, meaning companies in this category can hire up to five foreign workers without needing to meet the standard employment ratio.

These changes reflect the Turkish government’s commitment to supporting foreign investment while safeguarding employment opportunities for Turkish citizens. Companies that meet the financial exemption can now employ foreign talent more flexibly, while smaller businesses must ensure they comply with the updated employment criteria to avoid application rejection.

 III. Revised Financial Adequacy Criteria

 The 2024 updates have introduced more stringent financial adequacy criteria for companies seeking to employ foreign workers. These criteria are designed to ensure that only financially stable businesses are eligible to hire foreign employees, reflecting the government’s focus on promoting robust economic participation from both local and foreign entities.

1. For Newly Established Companies: For companies established in the current fiscal year that have not yet completed a full fiscal cycle or produced annual financial statements, the minimum paid-in capital required for work permit applications has been raised to 500,000 TL. This is a significant increase from the previous requirement of 100,000 TL, underscoring the stricter expectations for new businesses to demonstrate their financial strength before hiring foreign workers.
2. For Existing Companies: Companies that have been in operation for more than a year and have submitted at least one annual balance sheet must meet one of the following criteria:
   • A paid-in capital of at least 500,000 TL (up from the previous requirement of 100,000 TL), or
   • Annual net sales of at least 8 million TL, or
   • Exports totaling at least 150,000 USD in the previous year.
3. For Partnerships: In cases where a company applying for a work permit is part of a partnership, at least one of the partners must meet the financial criteria. This includes having a minimum paid-in capital of 500,000 TL, annual net sales of 8 million TL, or exports of at least 150,000 USD.

It’s important to note that these revised capital requirements will not take effect until January 1, 2025. Until then, the existing criteria remain applicable. More details regarding this transitional period are provided in the following chapters below.

 IV. New Salary Thresholds for Work Permit Applications

 The 2024 updates have introduced revised salary requirements for foreign employees, marking a notable shift in compensation expectations across various job roles. The new thresholds are expressed as multiples of the gross minimum wage, ensuring that foreign workers are compensated fairly based on their responsibilities. Compared to the previous criteria, these new thresholds are either higher or adjusted to better align with the level of expertise required for each position.

1. Executives and Pilots: Under the new regulations, foreigners employed as senior executives or pilots must now receive a salary that is at least 5 times the gross minimum wage. This is a reduction from the previous requirement of 6.5 times the minimum wage, providing more flexibility for employers without compromising fair compensation.
2. Engineers and Architects: For foreign engineers and architects, the salary threshold has been adjusted to 4 times the gross minimum wage, down from the previous 4.5 times the minimum wage. This slight decrease continues to recognize the specialized skills involved, while making the hiring process more accessible for companies.
3. Other Managers: Mid-level managers who do not qualify as senior executives must be compensated with a salary that is at least 3 times the gross minimum wage. This remains consistent with the previous criteria, ensuring that mid-level management positions maintain the same compensation expectations.
4. Skilled Workers and Specialists: Foreign workers in roles requiring specialized skills or craftsmanship must now receive at least 2 times the gross minimum wage, a reduction from the previous threshold of 3 times the minimum wage. This adjustment broadens opportunities for skilled workers while maintaining fair pay standards.
5. Household Workers and Other Roles: For household service providers and other general positions, the salary must meet the minimum wage requirement, which remains unchanged from previous regulations. This ensures that foreign workers in these roles are still compensated at a fair and legal level.

The revised salary thresholds represent a more balanced approach to compensating foreign employees, providing some flexibility in hiring while still maintaining competitive wages. Employers must carefully adhere to these new salary requirements to avoid application rejections, particularly given the reduced thresholds for some key roles compared to previous years.

V. Expanded Exemptions from Employment and Financial Criteria

 The 2024 updates also introduce expanded exemptions for certain foreign employees and companies from the standard employment and financial adequacy requirements. These exemptions provide flexibility for businesses and foreign workers who meet specific conditions, allowing them to bypass some of the more stringent criteria introduced in the new regulations.

1. Foreign Workers with Long-Term Residence in Turkey: A significant change is the introduction of exemptions for foreign employees who have legally resided in Turkey for at least three years (excluding student residence permits). Foreign workers who meet this condition and are applying for a work permit within Turkey may benefit from exemptions to both the employment and financial adequacy criteria. This exemption applies to a maximum of three foreign employees per business.
2. Employment Balance with Turkish Citizens: Even for businesses benefiting from the exemptions mentioned above, the number of foreign employees must not exceed the number of Turkish citizens employed in the same workplace. This ensures that even exempt companies maintain a reasonable balance between Turkish and foreign workers.
3. International Protection Applicants: Businesses employing foreign workers who are under international protection may benefit from further flexibility in the employment and financial criteria. However, the total number of such foreign workers must still respect the balance rule, meaning that foreign workers cannot exceed the number of Turkish employees in the workplace. If a business wishes to employ more than three foreign workers under international protection, the standard employment and financial adequacy criteria will be applied to any additional foreign employees.

These exemptions are designed to encourage businesses to employ foreign workers who have established legal residence in Turkey, while still maintaining safeguards for the local workforce. Companies and foreign employees who qualify for these exemptions will find the work permit application process more flexible, especially in terms of meeting the otherwise strict financial and employment requirements.

VI. Transition Period

The 2024 regulations include transitional provisions to ensure a smooth implementation of the new criteria, particularly regarding work permits issued prior to October 1, 2024. These provisions offer guidance on how existing and future applications will be handled during the transition period, preventing any abrupt disruption to ongoing employment.

1. Handling of Existing Work Permits: Work permits granted before October 1, 2024, are still valid under the terms they were issued. However, when applying for an extension of these permits, the application will be evaluated based on the criteria that were in effect at the time of the initial permit’s issuance. This means that the stricter financial adequacy and employment criteria introduced in 2024 will not retroactively apply to these extensions. Extending a previously issued work permit will be crucial to avoiding the more demanding criteria, especially regarding financial adequacy. If a permit is allowed to expire or is cancelled, any new application will be subject to the updated, stricter regulations. This could mean a much higher capital requirement, making it critical to manage work permit extensions carefully.
2. New Applications During the Transitional Period: For new applications submitted after October 1, 2024, the revised criteria will apply immediately. However, there are exceptions related to financial adequacy criteria:
   • Until January 1, 2025, companies can still meet the previous financial adequacy criteria, which require a minimum paid-in capital of 100,000 TL, net sales of 800,000 TL, or exports of 150,000 USD.
   • After January 1, 2025, companies must comply with the new thresholds, which raise the minimum paid-in capital to 500,000 TL, among other requirements.
3. Status of Previous Applications: Applications submitted before October 1, 2024, will be processed based on the previous regulations. This includes work permits still in the evaluation process at the time of the regulatory change. The new criteria will not affect these ongoing applications.

In summary, extending work permits issued before October 1, 2024, is vital to avoid being subject to the new, stricter criteria, particularly in terms of financial adequacy and capital requirements. Letting a work permit lapse could result in a costly reapplication process under the updated regulations.,

VII. Conclusion

 The 2024 updates to work permit regulations for foreigners represent a significant shift in the country’s employment landscape. With stricter financial adequacy requirements, updated employment criteria, and revised salary thresholds, companies must now carefully navigate the more demanding regulations to ensure successful applications. These changes reflect Turkey’s commitment to balancing the needs of foreign talent with the protection of its local workforce.

For businesses, it is essential to stay aware of these updates, particularly regarding the new financial thresholds that will come into effect on January 1, 2025. Companies that act promptly by extending work permits issued before October 1, 2024, can avoid the more stringent requirements and ensure continuity for their foreign employees. Conversely, failure to extend these permits could lead to reapplications under much stricter conditions, especially financially.

Ultimately, understanding and complying with the new regulations will be key for businesses and foreign workers to avoid delays or rejections in the application process. Given the complexities of the new rules,

Av. Ali Yurtsever

Contact for consulation

Author Bio