Turkish Labor Law
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It seems that this year will be costlier than the last, since the Minimum wage has been raised to 1.647,00 TL starting from 1st January 2016, while it was 1.273,50 TL in 2015, and the wage hike is about %30.
In the tables below you can see the comparison tables as regard to last two years’ gross and net minimum wages and their cost to employers.
|
MINIMUM WAGE |
2015 |
2016 |
RISE |
|
MINIMUM GROSS WAGE |
1.273,50 |
1.647.00 |
373,50 |
|
SSI EMPLOYEE CONTRIBUTION (%14) |
178,29 |
230,58 |
52,29 |
|
UNEMPLOYMENT PREMIUM-EMPLOYEE % 1 |
12,74 |
16.47 |
3,73 |
|
INCOME TAX BASE |
1.082,47 |
1.399,95 |
317,47 |
|
AMOUNT OF INCOME TAX |
162,37 |
209,99 |
47,62 |
|
STAMP TAX |
9,67 |
12, 50 |
2,83 |
|
TOTAL EMPLOYEE DEDUCTION |
363,07 |
469,54 |
106,48 |
|
MINIMUM LIVING ALLOWANCE/SINGLE/NO CHILD) |
90,11 |
123,53 |
33,42 |
|
NET WAGE (Net Minimum Wage+MLA) |
1.000,54 |
1.300,99 |
300,45 |
|
COST OF EMPLOYER |
2015 |
2016 |
RISE |
|
MINIMUM GROSS WAGE |
1.273,50 |
1.647.00 |
373,50 |
|
SSI EMPLOYER CONTRIBUTION (%15,5) |
197,39 |
255,28 |
57,89 |
|
UNEMPLOYMENT PREMIUM-EMPLOYER ( % 2 ) |
25,47 |
32,94 |
7,47 |
|
COST OF EMPLOYER |
1.496,36 |
1.935,23 |
438,87 |
|
COST OF EMPLOYER (WITH 100,00 TL TREASURY SUPPORT)* |
|
1.835.23 |
338,87 |
*Employers will be receiving daily 3,33 TL, (monthly 100.00 TL) premium refund throughout 2016 for each worker whose wage (earnings subject to premium) were notified under daily gross 85 TL (monthly gross 2.550.00 TL) in 2015, and for each personnel employed in new enterprises established/registered within 2016.
The Rise in the Cap of Monthly Earnings Subjected to Premium Impact on the Cost
Monthly cap of earning subjected to premium are calculated as 6,5 times of monthly minimum wage, and it is increased from 8.277,90 TL to 10.705.50 in 2016. This is the maximum limit that premium deductions can be made from, and with the rise the premium contribution of employer will be higher for the wages higher than gross 8.277,90 TL.
For example: Employee’s monthly gross wage is 10.705,50 or more both in 2015 and 2016, but employer will be paying 424,83TL more premium for the same wage in 2016, as it is seen table below.
|
PREMIUM CONTRIBUTION OF EMPLOYER |
2015 |
2016 |
RISE |
|
MONTHLY SSI BASE/Maximum LIMIT |
8.277,90 |
10.705.50 |
2.427,60 |
|
SSI EMPLOYEE CONTRIBUTION (%15,5) |
1.283,07 |
1659,35 |
376,28 |
|
UNEMPLOYMENT PREMIUM-EMPLOYER ( % 2 ) |
165,56 |
214,11 |
48,55 |
|
TOTAL PREMIUMTO BE PAID BY EMPLOYER |
1.448,63 |
1.873,46 |
424,83 |
