ANTICIPATED MINIMUM WAGE INCREASE TO BE DETERMINED IN DECEMBER 2023
We would like to inform you that in accordance with the statements of relevant governmental officials, an increase in the minimum wage will be announced in the coming month of December.
Labor Code numbered 4857 (the “Code”) (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 21 June 2023, the minimum monthly wage is currently net TRY 11,402 (approximately Euro 360/ USD 395)* and the total cost for the employer is gross TRY 13,414 (approximately Euro 425/ USD 465)* between 1 July 2023 and 31 December 2023 pursuant to the Minimum Wage Determination Commission’s Decision dated 20 June 2023.
It is expected that the Minimum Wage Determination Commission will be convened in December 2023 to discuss the minimum wage increase. Kindly note that the Minister of Labor and Social Security has recently announced that they plan to ensure that the increase in the minimum wage will be sufficient so that it will be the only increase in the year of 2024 and thus they stipulated that the Minimum Wage Determination Commission will not be convened again in July 2024 as it did in July 2023.
The net minimum monthly wage which will be valid in 2024 is forecasted to be an increase between TRY 15,000 (approximately Euro 475 / USD 520)* and TRY 17,000 (approximately Euro 540 / USD 590)*.
Last but not least, it should be kindly noted that the increase in minimum wage for employees should also have an impact on other employees’ wages, which are above the minimum wage. Hence, it would be recommended for employers to consider an increase in wages for those employees in order to protect them against rising inflation, decline in purchasing power, soaring living costs and so on.
*As per the exchange rate valid on the date of the Newsletter.
Our Law Firm remains at your disposal for any further clarifications you may need.
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