Legal News

Labor Cost Estimation for the Year 2017 in Turkey

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Employment Cost ArtIt is only weeks to end of the year, and naturally the next year’s annual budget is on the agenda of all companies. Of course the budgets comprised of many cost/ income elements, no doubt it is very important to make correct predictions on employment costs for getting close to the actual expenses.
In this article we will try to help you by providing the estimated payroll parameters, with which employment cost of employer is strictly connected.

2017 Minimum Wage Estimation in Turkey

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Minimum Wage ArtTurkey's minimum wage is of particular concern to about 5 millions employees in the country, and will be announced in the forthcoming days.

Almost all of the payroll parameters are derived from minimum wage which is determined by "Minimum Wage Fixing Board" (Labor Law 4857, article 39) every two years. Traditionally, wage rise is applied differently for the first and second half of the year, however 2016 is an exception and net minimum wage has increased %30, covering all year long.

Regulation on Part-Time Work After Childbirth and Adoption in Turkey

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Part Time Mom ArtAs is known, Law No. 6663, which has been entered in force as of 10 February 2016, has introduced new choices for working women and adoptive parents, such as working half-time up to a certain periods and work part-time until the child begins to school, after the expire of statutory maternity leave and/or half-time work periods.

Now the fields and works in which the part time work is permissible, and application procedures and principles have been determined by the Regulation issued in Official Journal numbered 29882, dated 8 November 2016.

Increase in The Cap of Daily Earnings Subjected to Premium

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Cap ArticleCurrently daily cap of earning subject to premium are calculated as 6,5 times of daily minimum wage. This is the maximum limit that premium deductions can be made from, and it is 356,85 TRY (monthly 10.705,50 TRY) for 2016.

Now with the new government proposal, it is strongly expected that starting from the January 2017 the cap of earnings (both daily and monthly)subject to premiums will be increased to 7,5 times of daily (and monthly) minimum wage.

No Decrease In Net Minimum Wage

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no-decrease-in-net-minimum-wageGovernment bill of law, intended to prevent any decrease in 2016 net minimum wage due to shift in the taxable income brackets, has been accepted in Parliament's Planning and Budget Commission and expected to be in force soon.

As it is known, Turkey's net minimum wage is determined as 1.300,99 TL (minimum living allowance included) throughout 2016.

In the application of income tax rates, the cumulative income is taken as a base. Until September 2016 the cumulative amount of minimum wage was in the first bracket, which is 12.600,00 and the rate was 15%. But as of October some part of cumulative minimum wage will be shifted to second bracket and 20% income tax will be applied to that part of the wage, and will lower it up to 1.230,00 TL, meaning about 70,00 TL losses on the monthly minimum wage.

Now with the new bill of law, an additional "Minimum Living Allowance" will be provided for minimum wage earners whose net minimum wages drops below 1.300,99 TRY. This addition will cover October, November and December.

Private Employment Agency Regulation In Turkey

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private-employment-agency-regulation-in-turkeyFlexible working provisions introduced into labor market by Law No. 6715 on 6 May 2016 to create a balance between flexibility and security for both workers and employers. The Law aimed at arranging temporary working relationship, and widened the activity-areas of private employment agencies.

For detailed information please visit our website: http://turkishlaborlaw.com/news/legal-news/389-temporary-employment-accepted-in-parliament

Now, the "Regulation on Private Employment Agencies," determines the conditions of temporary employment have been issued in Official Journal No. 29854 dated 11 October 2016.

Turkey To Continue With Summer Time

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turkey-to-continue-with-summer-timeClocks in Turkey will not be set back one hour to pass into winter time this year throughout the entire country, and the currently implemented summer time, which is also called DTS (Daylight Saving Time), will be the country's non-changing standard time from now on.

Turkey who is in the Eastern European Time zone (EET) were normally synchronized with European countries as regard to DST change, however the government, with a cabined decree, dated 8 September 2016, decided that in this and the upcoming years the summer time will stay stable in order to make more use of daylight during the winters.

As a result of this decision Turkey will stay on GMT/UTC + 3 all round the year while many of the countries in the World and Europe will set back their clocks one hour back in winter (i.e. 30 October, 2016)

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