2019 Minimum Wage Support Announced

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As is known, Turkey’s monthly gross minimum wage is increased from 2.029,50 to 2.558,40 with a monthly 26% wage hike (from net 1.603,12 to 2.020,91). Government, as it has been the case for the last three years, decided to continue supporting employers in 2019 in an effort to reduce the increased employment cost.

The Provisional Article 78 is added to Law No 5510 by the Law No. 7162/10 issued in the Official Gazette on 30 January 2019.

Minimum wage support will be applied in comparison with same month of the previous year. The support amount will be set off from the employer’s premium debts of the related month in SSI’s platform.

Employers will be receiving daily 3,36 TRY premium refund throughout 2019 for each worker whose wage (earnings subject to premium) were notified under daily gross 102,00 TRY (monthly gross 3.060,00 TRY) in 2018.

The daily base amount for unionized workplaces will be 203,00 TRY (monthly 6.090,00 TRY), and 271 TRY for underground mining companies.

Employers will benefit from the support for the declared total premium covered days of insured who are employed in the establishments registered (taken into scope of Law No. 5510) within 2019.

You can see the earning daily basis and the daily support amount to be multiplied by Total Premium Covered Days in the table below.

Workplace  

Average Number of Employees

Daily Earning Base TRY

Daily support Amount TRY (Amount to be multiplied by Total Premium Covered Days)

Non-Unionized Workplaces

Below 500

102

5  

Non-Unionized Workplaces Try

Over 500  

102  

3,36  

*Unionized Workplaces

Below 500

203  

5  

Unionized Workplaces

Over 500

203  

3,36   

Underground Mining

Below 500

271

5  

Underground Mining  

Over 500  

271  

3,36  

A Unionized Workplace” is the workplace in which collective agreement provisions are applied.

SAMPLE CALCULATION

Workplace declared 5 employees whose daily gross earnings were under 102,00 TRY in January 2018.

Monthly premium paid days: 5*30=150 days.

Daily support amount: 5 TRY (Because average number is below 500),

Total amount to be set off from the employer’s SSI premium debts in January 2019: 150*5=750 TRY.



WHO CANNOT BENEFIT FROM THE SUPPORT?

Employers who;

  • do not submit their monthly premium and service documents and do not pay the premiums in time,

  • in the investigations and inspections performed by the officers authorized with audits and checks, are found not to have notified the employed personnel as insured or if the notified insured is not working virtually,

  • did not pay the premium, administrative fine and delay penalty debts to Institution (SSI), cannot be benefiting from the above incentives

  • The amounts covered by Treasury will be collected back with delay fine and default interest from the establishments who are found out to be dealing with fictitious transaction in order to benefit from incentives.

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