Minimum wage to be increased

IMPACT — MEDIUM

The Turkish government has announced that it will increase the national minimum wage due to inflation.

Key Points:

• Turkey’s gross monthly minimum wage will increase to 13,414.50 TRY (about US$570) from 10,008 TRY, and the net minimum monthly wage will increase to 11,402.32 TRY.
  • High-level managers must be paid at least six-and-a-half times the minimum wage (87,194.25 TRY per month).
  • Department managers, engineers and architects must be paid at least four times the minimum wage (53,00 TRY per month).
  • Teachers and employees working in positions requiring expertise must be paid at least three times the minimum wage (40,50 TRY per month).
  • Individuals in the tourism sector must be paid at least twice the minimum wage (26,829.00 TRY per month).
  • Employees in certain other positions, such as sales officers and low-level marketing employees, must be paid at least one-and-a-half times the minimum wage (20,121.75 TRY per month).
• The new minimum wage will take effect on 1.
• Applications that are filed before July 1 must meet the new salary requirements if they have not been adjudicated.

BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account and adjust their budgets if necessary.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

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