Bulletin On New Minimum Wage
Pursuant to Minimum Wage Commission’s meeting on 16 December 2021, the net minimum wage has been determined as TL 4.253,40 for the year 2022. Please note that the announcement has not been published on Official Gazette. The information and views shared in this bulletin may be subject to change following publication on Official Gazette and secondary legislation.
1. Net Wage Amount
The President announced the net minimum wage amount TL 4,250. Upon this announcement, the Ministry of Labor and Social Security (“the Ministry”) has published a calculation on its website indicating the gross minimum wage amount TL 5,004 and calculating the net amount TL 4.253,40
2. Minimum Wage Cost to the Employer
The Ministry’s calculation indicated that the total cost of labor working for a minimum wage would be TL 5.879,70
NET MINIMUM WAGE CALCULATION (TL / MONTH)
|SOC. SEC. PREM % 14||700,56|
|UNEMPL. INS. PREM % 1||50,04|
|NET MINIMUM WAGE||4.253,40|
EMPLOYER COST (TL / MONTH)
|SOC. SEC. PREM % 15.5 (Employer portion)||775,62|
|EMPLOYER UNEMPL. INS. PREM % 2||100,08|
|TOTAL EMPLOYER COST||5.879,70|
3. Tax Exemptions on Minimum Wage
The President has also announced that Income and Stamp Tax exemptions shall be applicable on minimum wage starting from 2022. Based on this announcement we believe that these exemptions shall be applicable only to employees earning minimum wage. Please note that, as mentioned above the information and views shared may change pursuant to the publication of secondary legislation.