Minimum wage in Turkey

From Wikipedia, the free encyclopedia

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 ₺22,104 per month (c. US$540 on 27 March 2025) as of 1 January 2025.[3]

Historical background

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

Summarize
Perspective

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]

More information Year, Gross (TRY) ...
YearGross (TRY)Net (TRY) Gross (USD) Net (USD) Gross USD/TRY Net USD/TRY Gross/Net Ratio Gross (PPP, 2020 USD) Note
2025 26,005.50 22,104.67 738.82 628.00 35.19 35.19 0% Due to inflation, the conversion rate changes greatly. The current conversion rate, indicated in the table, is based on figures when the minimum wage was announced.
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
Close
More information Year, Gross (TRY) ...
YearGross (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
Close

Yearly trend of Minimum Wage in USD (Employer Cost, Gross, Net)

Thumb
Last 20 Years of Türkiye's Minimum Wage


The trend of the minimum wage in Turkey reflects broader economic conditions. The graph highlights the impact of major financial events, such as the 2008 global economic crisis and the 2018 currency and debt crisis, both of which coincided with notable downturns.[10] The upward trend beginning in 2022 warrants further analysis, as it may be influenced by factors such as inflation, government policy changes, or labor market adjustments. It remains to be seen whether this increase marks a long-term trend shift or a temporary peak that may be reversed.[11]

Hourly equivalent of the minimum wage

Summarize
Perspective

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.[12]

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.[13]

More information Year, Gross Wage (Hourly) ...
YearGross Wage (Hourly) Net Wage (Hourly)[14]
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
Close

Tax deductions

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

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.[15] These rates may vary annually based on incentives provided by the government.

Violation of the minimum wage

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,[16] 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.[17]

Demographics

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.[18]

Ratio to average wage

Summarize
Perspective

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.[19]

Minimum Wage Determination Commission

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.[20]

See also

References

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