Wages to be Paid Through Bank Account

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Wages of employees in the workplaces employing 5 or more personnel must be paid through banks as of 1st June 2016.

Turkish Labor Law No. 4857, Article 32 defines the “Wage” in general terms,as the amount of money to be paid in cash by an employer or by a third party to a person in return for work performed by him.

As a rule the wage should be paid at the establishment or should be deposited into a specially openedbank account.

By a Regulation issued in 2008 it was made compulsory for the establishments with at least 10 employees to pay every kind of remuneration via specially opened bank accounts.

NEW REGULATION

Now with “The Regulation on amending the Regulation regarding Payments of Wages, Bonuses, Premiums and Every Kind of Remuneration through Banks” published in the official gazette dated 21 May 2016 with the effect date of 1st June 2016, the employee limit has been lowered to 5 employees, and establishments with 5 or more employees will have to pay all kind of remuneration via bank accounts.

This obligation will apply to workplaces operating in the scope of;

• Labor Law No. 4857; with at least 5 employee,
• Press Law No. 5953; with 5 employees whether press member or other personnel
• Maritime Labor Law No. 854; employing at least 5 seamen.

ADMINISTRATIVE FINE

Employers who do not comply with the said Regulation will be subject to an administrative fine of 161 TRY for per employee and per month in the year 2016.

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