THE DECISION REGARDING THE INCREASE OF THE MINIMUM WAGE

We refer to our Newsletter dated 22 December 2022 regarding the minimum wage determination and its announcement by the President for the year 2023. We would like to inform you with this additional bulletin that the Minimum Wage Determination Commission’s Decision dated 22 December 2022 and numbered 2022/2 has been published in the Official Gazette dated 28 December 2022 and numbered 32058.

In light of this, as per the Minimum Wage Determination Commission’s Decision, the minimum wage in Turkey has been increased by 54.7% and will be implemented as of 1 January 2023. Accordingly, the monthly-minimum wage of the employees will be gross TRY 10,008 (approximately EUR 500) and net TRY 8,506.80 (approximately EUR 430) as of 1 January 2023.

Therefore, the new gross minimum monthly wage will reach TRY 10,008 (approximately Euro 500[1]) exclusive of certain social security premiums and unemployment contribution. The said amounts are respectively TRY 1,551.24 and TRY 200.16. Thereby, the total cost for the employer will be TRY 11,759.40 (approximately Euro 600) for a minimum wage employee.

Our Law Firm remains at your disposal for any further clarifications or assistance you may need about the subject matter.