Minimum salaries increase

IMPACT – MEDIUM

What is the change? Turkey has announced minimum salary increases that impact salary thresholds for foreign workers. 

What does the change mean? Effective Jan. 1, the gross minimum monthly wage is 2,558.40 Turkish lira (about US$486). Aside from the minimum salary requirement, the salary to be paid to the foreign employee must be commensurate with the position considered. If foreign payroll is in place, it must meet the same criteria.

• Implementation time frame: Jan. 1.
• Visas/permits affected: Work/residence permits.
• Who is affected: Employers and employees applying for new or renewing work permits.

Additional information: The monthly minimum salaries required for work permits are as follows:

• High-level managers and pilots cannot be paid less than 6 ½ times the minimum gross wage (or 16,629.60 lira per month).
• Department managers and engineers/architects cannot be paid less than four times the minimum gross wage (or 10,233.60 lira per month).
• An employee who will work in a position requiring expertise (which is not defined) or a teacher cannot be paid less than three times the minimum gross wage (or 7,675.20 lira per month).
• An employee who will work as an acrobat or similar positions for tourism and animation organizations and masseurs/SPA therapists cannot be paid less than two times the minimum gross wage (or 5,116.80 lira per month).
• All others (i.e., sales officer or low-level marketing officer) cannot be paid less than 1 ½ times the minimum gross wage (or 3,837.60 lira per month).
• Household workers cannot be paid less than the minimum wage.

Analysis & Comments: The new salary minimums mark a significant increase above 2018 levels. Employers should be sure to take the new minimums into account when planning their 2019 budgets. Applications that are not supported by the appropriate salary will be rejected. The new salary levels apply whether the person is being hired locally or sent to Turkey on assignment (with an assignment letter).

Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.