In Türkiye, the minimum wage is determined by the Minimum Wage Determination Commission. Amounts are updated annually.
Minimum Wage Commission
- 5 governments, 5 employers, 5 worker representatives
- Collects at the end of the year
- Determines to be effective as of January 1
Net-Gross Difference
Deductions from gross wage:
- SGK workers' share (14%)
- Unemployment insurance workers' share (1%)
- Income tax
- Stamp tax (0.759%)
Net wage = Gross - Deductions
Cost to the Employer
Employer additional costs:
- SGK employer share (15.5% - in some cases 20.5%)
- Unemployment insurance employer share (2%)
- SSI incentive discounts
Total: Gross × ~1.18-1.20
Minimum Wage Exemption (after 2022)
Wages up to the minimum wage amount are exempt from income tax and stamp duty. This allows the net wage to increase.
Supreme Court 9. HD
9. HD accepts that employment contracts made below the minimum wage will be considered "valid at the minimum wage level" and that the employee has the right to collect the difference.
Labor law attorney is recommended.