Turkish Labor Law
Before the new year came, the minimum wage and accordingly other wages were adjusted. With the announcement of the minimum wage as being non-taxable, the next question raised is what would happen to other wages?. Will there be tax exemption for every wage earner’s income equal to the minimum wage? The answer is not clear yet.
However, the income tax tariff that will be valid in 2022 with the Income Tax General Communiqué Serial No. 317 was published in the Official Gazette on 21 December 2021.
2022 Income Tax Tariff
The 2022 income tax tariff of wage earners is announced as follows:
| Income Tax Tariff | |
| Income Bracket | Tax Rate % |
| Up to 32,000 TRY | 15% |
| For 32,000 of 70,000 TRY, tax is is determined as 4,800 TRY, for more | 20% |
| For 70.000 of 250,000 TRY, tax is is determined as 12,400 TRY, for more | 27% |
| For 250,000 of 880,000 TRY tax is determined as 61,000 TRY, for more | 35% |
| For 880,000 TRY, tax is determined as 281,500 TRY, for more | 40% |
The table can be summarized as below:
| Rate | Base |
| 1st Tax Bracket 15% | 0 – 32,000 |
| 2nd Tax Bracket 20% | 32,000 – 70,000 |
| 3rd Tax Bracket 27% | 70,000 – 250,000 |
| 4rth Tax Bracket 35% | 250,000 – 880,000 |
| 5th Tax Bracket 40% | 880,000+ |
Although according to the tax tariff of 2022 the minimum wage workers seem to be reaching the 1st tax bracket in the 8th month, as agreed by the government, there won’t be any income tax on the minimum wage. Therefore, the net minimum wage will not change throughout the year and the minimum wage will also be exempted from stamp duty.
