THE DECISION REGARDING THE INCREASE OF THE MINIMUM WAGE
As it is known, a minimum wage is the lowest remuneration that employers can legally pay their employees. The Minimum Wage Determination Commission is the authorized institution to determine the minimum wage in Turkey. Following the meetings held within the scope of determination of the minimum wage to be valid in 2021, The Minimum Wage Determination Commission which consists of employees, employers and government representatives has decided to increase the minimum wage in Turkey, by taking into account the factors such as employees’ livelihoods and inflation target for the year 2021.
In the light of this, as per the Minimum Wage Determination Commission’s Decision dated 28 December 2020 and numbered 2020/1, published in the Official Gazette dated 30 December 2020 and numbered 31350, it has been announced that the minimum wage in Turkey has been increased by 21.56% as of 1 January 2021. It has been unanimously decided to determine the daily minimum wage of the employees between January 1 and December 31, 2021 as gross TRY 119,25.
Therefore, the new gross minimum wage will reach TRY 3,577.50 (approximately Euro 400) exclusive of certain social security premiums and unemployment contribution. The said amounts are TRY 554,51 and TRY 71,55. Thereby the total cost of employer is TRY 4,203.56 (approximately Euro 467) for a minimum wage employee.
The minimum wage for single people without children will be net TRY 2,825.90 (Approximately Euro 315) which was previously TRY 2,324 a month (Approximately Euro 258), with an increase rate on minimum wage of 21,56%.
Besides, it has been also declared by the Ministry of Family, Labor and Social Services that the net minimum wage for;
- a married employee with an unemployed wife/husband, having no children will be TRY 2,879.57(approximately Euro 320).
- a married employee with an unemployed wife/husband, having one child will be TRY 2,919.81.(approximately Euro 324)
- a married employee with an unemployed wife/husband, having two children will be TRY 2,960.06(approximately Euro 329)
- a married employee with an unemployed wife/husband, having three children will be TRY 3,013.72(approximately Euro 334)