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As you may recall from our Newsletter dated 23 May 2022, the Ministry of Labor and Social Security (in Turkish, “Çalışma ve Sosyal Güvenlik Bakanlığı”) conducted studies in order to protect employees from high inflation rates in Turkey and that it will be determining the roadmap following the announcement of June inflation rates.

The Regulation amending the Regulation on Minimum Wage (the “Amending Regulation”) was published in the Official Gazette numbered 31883 on 1 July 2022 (in Turkish, “Asgari Ücret Yönetmeliği’nde Değişiklik Yapılmasına Dair Yönetmelik”) and it has been entered into force on the same day.  In the light of this, as per the Minimum Wage Determination Commission’s Decision dated 1 July 2022 and numbered 2022/1, it has been announced that the minimum wage in Turkey has been increased by 29.32% and will be implemented as of 1 July 2022.

With the amending Regulation, the monthly minimum wage of the employees between 1 July 2022 and 31 December 2022 was determined as gross TRY 215,70 by the Minimum Wage Determination Commission’s Decision. Pursuant thereto, the net minimum monthly wage is TRY 5,500.35 (approximately Euro 315).

Therefore, the new minimum monthly wage will reach gross TRY 6,471 (approximately Euro 370) exclusive of certain social security premiums and unemployment contribution. The said amounts are respectively TRY 1,003.01 and TRY 129.42. Thereby, the total cost for the employer is TRY 7,603.43 (approximately Euro 435) for a minimum wage employee.

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

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