Labor Minister Süleyman Soylu announced that Minimum Wage Determination Committee has reached an agreement on the monthly minimum net wage that will be 1.300 TL ($446) by the beginning of the year 2016 as expected.
And the most-awaited news for the business community, related to incentives and subsidies to be launched by the government to reduce the burden of employers came from the Labor Minister, as he said ahead of the committee’s meeting that government was to cover the %40 of employer’s extra cost which is monthly 274 TL*40/100=110 TL for each employee, per month. The support arrangement will be valid only for 2016.
NEW LEGISLATION NEEDED
The Minister also said that a new legislation is needed to launch the mentioned support and a proposal will be submitted to the Parliament to provide employers with fixed support of 110 TL per month. Proposal is expected to get through within the first week of January and its effect date will be as of 1 January 2015.
NEW MINIMUM WAGE AND ITS COST TO EMPLOYER
NET MINIMUM WAGE (SINGLE) 1.300,99 TL
NET MINIMUM WAGE (MARRIED/SPOUSE NOT WORKING) 1.325,69 TL
NET MINIMUM WAGE (ONE CHILD) 1.344,22 TL
NET MINIMUM WAGE (TWO CHILD) 1.362,75 TL
NET MINIMUM WAGE (THREE CHILD) 1.387,45 TL
GROSS MINIMUM WAGE 1.647,00 TL
COST OF EMPLOYER 1.935,23 TL
TREASURY SUPPORT 110 TL
COST OF EMPLOYER AFTER THE SUPPORT 1.825,23
