Turkish Labor Law
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Minimum Wage 2018 has been announced as Gross 2.029,50 TRY, Net 1.603,12 TRY to be implemented al through the year.
Minister of Labor and Social Security revealed the decision of Minimum Wage Fixing Board in a press conference today that Turkey’s monthly net minimum wage is increased from 1.404,06 TRY to 1.603,12 TRY with a monthly 14,2% wage hike (monthly net 199,06 TRY). It is also announced that the minimum wage support will continue in 2017, but the exact support amount has not been determined for the time being.
You can find the 2018 “calculation of minimum wage” and “cost of employer” in the tables below.
| CALCULATION OF MINIMUM WAGE/GROSS TO NET |
TRY
|
|
| MONTHLY MINIMUM GROSS WAGE | 2.029,50 | |
| DAILY GROSS WAGE | 67,65 | |
| SSI EMPLOYEE CONTRIBUTION (%14) | 284,13 | |
|
UNEMPLOYMENT PREMIUM – EMPLOYEE ( % 1) |
20,30 | |
| INCOME TAX BASE | 1.725,07 | |
| AMOUNT OF INCOME TAX | 258,76 | |
| STAMP TAX | 15,40 | |
| TOTAL EMPLOYEE DEDUCTION | 578,59 | |
| NET MINIMUM WAGE (Without Minimum Living Allowance) | 1.450,91 | |
| MINIMUM LIVING ALLOWANCE (SINGLE) | 152,21 | |
| NET MINIMUM WAGE (Minimum Living Allowance Included) | 1.603,12 |
LABOR COST OF EMPLOYER
Employer’s labor cost consists of gross wage to be paid to employee plus employer share of SSI premiums and unemployment premium paid to related government institutions.
| COST OF EMPLOYER | TRY |
| GROSS MINIMUM WAGE | 2.029,50 |
| SSI EMPLOYER CONTRIBUTION (%15,5)* | 314,57 |
| UNEMPLOYMENT PREMIUM-EMPLOYER ( % 2 ) | 40,59 |
| COST OF EMPLOYER | 2.384,16 |
| Cost of Minimum Wage to Employer / In case 100,00 TRY Government support is applied** | 2.284,16 |
* %5 Treasury incentive granted by Law No. 5510 is applied.
** Government support will be applied for 2018 minimum wage, however the support amount is not clear yet.
COST OF MAXIMUM WAGE (SSI CAP) TO EMPLOYER
Meaning of maximum wage here is the cap of earnings subject to premium, which is calculated as 7,5 times of daily gross minimum wage. Both employees’ and employers’ SSI contributions don’t change over this cap amount.
Daily cap of earnings subject to premium will be 67,65*7,5 = 507,38 TRY.
Monthly of earnings subject to premium will be 507,38*30= 15,221,40 TRY.
| PREMIUM CONTRUBUTION OF EMPLOYER | TRY |
| MONTHLY SSI BASE/MAXIMUM LIMIT | 15.221,40 |
| SSI EMPLOYER CONTRIBUTION (%15,5) | 2.359,32 |
| UNEMPLOYMENT PREMIUM-EMPLOYER ( % 2 ) | 304,43 |
| TOTAL PREMIUM TO BE PAID BY EMPLOYER (for max. wage) | 2.663,75 |
| TOTAL COST OF EMPLOYER (MAX WAGE+PREMIUMS) | 17.885,15 |
* %5 Treasury incentive granted by Law No. 5510 is applied.
