Government 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.