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We would like to inform you that in accordance with the non-official statements of the relevant governmental units, as well as the high expectations in this respect, an increase in the minimum wage may be announced in the coming month of July.

Labor Code numbered 4857 (in Turkish, “İş Kanunu”) envisages provisions in relation to the regulation of the minimum wage under the Turkish law system. As per its article 39, “With the object of regulating the economic and social conditions of all employees working under an employment contract, either covered or uncovered by this Code, the minimum limits of wages shall be determined every two (2) years at the latest, by the Ministry of Labor and Social Security through the Minimum Wage Fixing Board.”

In addition, Article 7 of the Regulation on Minimum Wage (in Turkish, “Asgari Ücret Yönetmeliği”) foresees that in determining the minimum wage, the living conditions and social and economic situation of the country shall be considered.

As you may recall from our Newsletter dated 28 December 2021, the monthly minimum wage of the employees between 1 January 2022 and 31 December 2022 was determined as gross TRY 166,80 pursuant to the Minimum Wage Determination Commission’s Decision dated 16 December 2021 and numbered 2021/1. Pursuant thereto, the gross minimum monthly wage is TRY 5,004 (approximately Euro 295 as per the foreign exchange rate valid on 23 May 2022; it was corresponding to EUR 380 on 28 December 2021).

There is not yet any official statement made on this subject about the review of the minimum wage considering the current circumstances and the inflation rate that is constantly increasing. However, the Minister of Labor and Social Security announced recently that there will be studies to protect employees from high inflation rates in Turkey and that they will be determining the roadmap following the announcement of June inflation rates.

Given that the costs of livings soar at a considerable rate and the demand for an increase in the minimum wage is very high by the public, an announcement of an increase in the minimum wage is forecasted in the coming July in Turkey.

Our Law Firm remains at your disposal for any further clarifications you may need.

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