Minimum wage in Turkey
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The minimum wage in Turkey represents the gross amount that an employee must legally receive over a period of 30 days. The determination of the minimum wage is primarily based on a daily calculation, from which monthly and hourly rates are derived. The standard weekly working hours are set at 45, assuming an equal distribution across the other days of the week with only one day off, resulting in a daily duration of 7 hours and 30 minutes.[1][2]
Part-time employment involves working up to 30 hours, inclusive, while full-time employment encompasses working hours from 30 up to 45 per week. Breaks taken on workdays are not added to the total working time. Legally mandated weekly leave of at least one day is obligatory, and the employee is compensated as if they had worked on that day. The "net minimum wage" paid to the worker is calculated after deducting taxes paid to the government.
The minimum wage is a fundamental component of the labor market, representing the lowest threshold of implementation in employment practices. The current net minimum wage in Turkey is ₺17,002.12 per month (c. US$498.34) as of 1 January 2024.[3]
Historical background
[edit]Although the concept of the minimum wage was introduced into Turkish legislation with the Turkish Labour Act of 1936, its implementation did not materialize until 1951. From 1951 to 1967, the minimum wage was determined by local commissions. The practice of establishing a minimum wage determination commission, which has undergone several changes and persisted until today, began after 1967.
Until 2022, the minimum wage in Turkey was subject to a 15% income tax based on the income tax base and a 7.59% stamp duty on the gross wage. With a decision made at the end of 2021, these taxes were abolished. Additionally, the minimum subsistence allowance, which varied according to the employee's marital status and the number of children, was also eliminated as a result of the removal of income tax.[4][5][6]
Minimum wage by years
[edit]The table below lists the pre-tax (gross) and post-tax (net) amounts that a single, unmarried worker who works a standard 45-hour week should receive at the end of the month.[7] The third column indicates the nominal value of the minimum wage in U.S. dollars at the beginning and end of the year.[8] On the far right, minimum wages are provided based on purchasing power parity in constant 2020 U.S. dollars.[9]
| Year | Gross (TRY) | Net (TRY) | Gross (USD) | Net (USD) | Gross USD/TRY | Net USD/TRY | Gross/Net Ratio | Gross (PPP, 2020 USD) | Note |
|---|---|---|---|---|---|---|---|---|---|
| 2024 | 20,002.50 | 17,002.12 | 678.68 | 576.88 | 29.47 | 29.47 | 0% | Due to inflation, the conversion rate changes greatly. The current conversion rate, indicated in the table, is based on figures on 1 January, 2024 at 05:44 UTC. | |
| 2023 July-December |
13,414.50 | 11,402.32 | 516.75 | 441.89 | 23.71 | 23.71 | 0% | ||
| 2023 January-June |
10,008 | 8,506.80 | 575.67 | 455.18 | 18.67 | 18.67 | 0% | ||
| 2022 July-December |
6,471 | 5,500.35 | 386.15 | 328.20 | 16.76 | 16.76 | 0% | Since 2016, the minimum wage, which was previously determined annually, underwent a second adjustment in 2022 due to elevated inflation rates. | |
| 2022 January-June |
5,004.00 | 4,253.40 | 292.63 | 248.71 | 17.1 | 17.1 | 0% | ||
| 2021 | 3,577.50 | 2,825.90 | 481.80 | 228.27 | 7.43 | 12.38 | 40% | ||
| 2020 | 2,943.00 | 2,324.70 | 495.00 | 419.90 | 5.95 | 5.54 | 7% | 12,777.80 |
| Year | Gross (TRY) | Net (TRY) | Gross (USD) | Net (USD) | Gross USD/TRY | Net USD/TRY | Gross/Net Ratio | Gross (PPP, 2020 USD) | Note |
|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2,558.00 | 2,020.59 | 485.90 | 450.90 | 5.26 | 4.48 | 17% | 12,466.40 | |
| 2018 | 2,029.50 | 1,603.00 | 532.10 | 420.30 | 3.81 | 3.81 | 0% | 14,425.90 | |
| 2017 | 1,777.00 | 1,404.00 | 502.80 | 487.20 | 3.53 | 2.88 | 23% | 14,698.20 | |
| 2016 | 1,647.00 | 1,300.99 | 565.90 | 545.30 | 2.91 | 2.39 | 22% | 15,136.80 | Before 2016, minimum wage adjustments were applied at six-month intervals; however, this practice underwent a change thereafter. |
| 2015 July-December |
1,273.50 | 1,000.54 | |||||||
| 2015 January-June |
1,201.50 | 949.07 | |||||||
| 2014 July-December |
1,136 | 891 | |||||||
| 2014 January-June |
1,071 | 846 | |||||||
| 2013 July-December |
1,021.50 | 804.69 | |||||||
| 2013 January-June |
978.60 | 773.98 | |||||||
| 2012 July-December |
940.50 | 739.80 | |||||||
| 2012 January-June |
886.50 | 701.14 | |||||||
| 2011 July-December |
837.00 | 599.21 | |||||||
| 2011 January-June |
796.50 | 570.21 | |||||||
| 2010 July-December |
760.50 | 544.44 | |||||||
| 2010 January-June |
729.00 | 521.89 | |||||||
| 2009 July-December |
693.00 | 546.00 | |||||||
| 2009 January-June |
666.00 | 527.13 | |||||||
| 2008 July-December |
638.70 | 546.00 | |||||||
| 2008 January-June |
608.40 | 481.55 | |||||||
| 2007 July-December |
419,155.652 | ||||||||
| 2007 January-June |
403,034.281 |
Hourly equivalent of the minimum wage
[edit]The worker's hourly wage is calculated based on a monthly assumption of 30 working days. Legally, there is one mandatory paid leave day per week and a standard weekly working time of 45 hours. When the weekly working hours are distributed across the other days of the week, the daily working hours are 7 hours and 30 minutes. The pay for the leave day is 7.50 times the hourly wage; however, this is not included in the weekly working hours. The hourly wage is calculated by dividing the result of assuming 7 hours and 30 minutes of work for 30 working days by the wage.[10]
If the regular weekly working time agreed upon between the worker and the employer is less than 45 hours (e.g., 40 hours), hours worked between this time and 45 hours are considered overtime and are compensated with a 25% hourly rate increase. Hours worked beyond the 45 hours per week are classified as overtime, and the hourly wage is paid with a 50% increase.[11]
| Year | Gross Wage (Hourly) | Net Wage (Hourly)[12] |
|---|---|---|
| 2023
(07-12) |
59.61 | 50.67 |
| 2023
(01-06) |
44.48 | 37.80 |
| 2022
(07-12) |
28.76 | 24.44 |
| 2022
(01-06) |
22.24 | 18.90 |
| 2021 | 15.90 | 12.55 |
| 2020 | 13.08 | 10.32 |
| 2019 | 11.37 | 8.97 |
| 2018 | 9.02 | 7.12 |
| 2017 | 7.90 | 6.24 |
| 2016 | 7.32 | 5.78 |
Tax deductions
[edit]For a non-retired worker, 14% of the gross minimum wage is deducted as the employee's share for social security contributions, and 1% for unemployment insurance contributions is also deducted as the employee's share.
Cost to the employer
[edit]For each employed worker, in addition to the gross wage, the employer pays 20.5% employer social security contributions on the gross wage and 2% employer unemployment insurance contributions.[13] These rates may vary annually based on incentives provided by the government.
Violation of the minimum wage
[edit]The violation of the minimum wage can occur directly or indirectly in various ways: misrepresentation of full-time employment as part-time in records and payment accordingly,[14] failure to pay overtime wages, reclaiming a portion of the salary provided at the end of the month, and not remitting deductions to the government after paying the net minimum wage.[15]
Demographics
[edit]According to the 2014 data from the Ministry of Labour and Social Security, out of over 12.2 million registered workers, approximately 5 million, or more than 40%, are employed at the minimum wage. According to these figures, Turkey has the highest proportion of workers earning the minimum wage among European countries. When the 9.6 million informal workers, of whom 3.5 million are categorized as "salaried or daily wage earners", are added to this group, it is believed that the percentage in Turkey exceeds 40%. However, despite requests made in the Grand National Assembly of Turkey, the government and the Social Security Institution have not disclosed the current number of workers earning the minimum wage.[16]
Ratio to average wage
[edit]In 2006, the minimum wage, which had hovered around half the level of the average wage, gradually approached the average wage level throughout this period until reaching its peak in 2020. If the minimum wage is increased in 2021 in proportion to inflation, it is anticipated to correspond to 80.79% of the monthly average salary according to the Social Security Institution data, and 93% according to the Turkish Statistical Institute data.[17]
Minimum Wage Determination Commission
[edit]In Turkey, decisions regarding the minimum wage are made by the Minimum Wage Determination Commission. This commission consists of representatives from workers, employers, and the government, each having one voting right. The definitive determination of the minimum wage in Turkey takes place within this commission. A simple majority vote is required for the decisions to become final, instead of unanimity.
According to a study conducted by DİSK-AR in 2017, out of the 18 decisions made by the commission in the past 18 years, 13 were obtained with the votes of employers and government representatives. Only in 3 years, unanimity was achieved along with the votes of employer representatives. Employer representatives argue that the Minimum Wage Determination Commission should adopt a unanimity rule instead of a majority vote.[18]
See also
[edit]References
[edit]- ^ "Tam Zamanlı work Nedir ?" (in Turkish). Archived from the original on 8 April 2021.
- ^ "Part-time work nasıl tanımlanır?" (in Turkish). Archived from the original on 24 March 2019.
- ^ "T.C. Çalışma ve Sosyal Güvenlik Bakanlığı | Asgari Ücret" (in Turkish). Ministry of Labour and Social Security of Turkey. Retrieved 28 December 2023.
- ^ "Net Asgari Ücret Hesaplaması" (in Turkish). Archived from the original on 22 April 2018.
- ^ "Ücret ve maaşların asgari ücret tutarından gelir ve damga vergisi alınmamasını da içeren teklif kabul edildi" (in Turkish). Archived from the original on 22 December 2021. Retrieved 16 January 2022.
- ^ "AGİ kalktı mı? Asgari ücrete AGİ dahil mi?" (in Turkish). Archived from the original on 15 January 2022. Retrieved 16 January 2022.
- ^ "Bakanlık listesi" (PDF) (in Turkish). Archived from the original (PDF) on 9 August 2020. Retrieved 21 June 2020.
- ^ "Turkey National Minimum Wage - NMW 2021". countryeconomy.com. Archived from the original on 9 August 2013. Retrieved 9 September 2021.
- ^ "Real minimum wages". stats.oecd.org. Archived from the original on 14 May 2013. Retrieved 9 September 2021.
- ^ "Saatlik Ücret Nasıl Hesaplanmalıdır?" (in Turkish). Archived from the original on 7 November 2018. Retrieved 28 September 2021.
- ^ "Fazla Mesai Ücreti Hesaplama" (in Turkish). Archived from the original on 30 March 2019. Retrieved 11 September 2021.
- ^ "Asgari Ücret Saatlik (Brüt-Net)" (in Turkish). Engelli.com. 20 June 2023. Archived from the original on 20 June 2023. Retrieved 20 June 2023.
- ^ "2022 YILI ASGARİ ÜCRETİN İŞVERENE MALİYETİ" (in Turkish). Archived from the original on 18 January 2022. Retrieved 16 January 2022.
- ^ "Yasalar asgari ücretin altında çalıştırmaya izin veriyor mu?" (in Turkish). Archived from the original on 18 June 2021. Retrieved 25 January 2022.
- ^ "Asgari Ücreti Bile Ödemek İstemeyen Patronlar Yasa Dışı Yöntemlere Başvuruyor" (in Turkish). Archived from the original on 16 January 2022. Retrieved 25 January 2022.
- ^ "Avrupa'da en fazla asgari ücretli çalışan oranı Türkiye'de". euronews (in Turkish). 7 December 2020. Archived from the original on 7 December 2020. Retrieved 9 September 2021.
- ^ "Türkiye'de ortalama ücretler 'asgari ücret' seviyesine indi". Independent Türkçe (in Turkish). 26 November 2020. Archived from the original on 26 November 2020. Retrieved 9 September 2021.
- ^ "Asgari Ücret Tespit Komisyonu" (in Turkish). Archived from the original on 30 October 2021.
