What is the minimum wage?
Minimum wage refers to the lowest wage that must be legally paid to employees in a country. In Turkey, the minimum wage is determined so that employees can meet their basic needs and maintain their living standards. It is also important as it is accepted as a reference in many economic processes.
Inflation rate is an important factor in determining the minimum wage. For this reason, it is generally requested that the minimum wage be increased above inflation. This is because inflation increases the cost of living and workers need a higher wage to make ends meet.
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Who determines the minimum wage?
The minimum wage amount is determined every year by collective agreements made by the Turkish Statistical Institute (TUIK), the Turkish Confederation of Employer Associations (TISK) and Türk-İş (Turkish Confederation of Trade Unions). The wage determination process is determined as a result of mutual negotiations by a commission formed with the participation of non-governmental organizations representing the government, employers and employees. In the Labor Law No. 4857, the name of this commission is the Minimum Wage Determination Commission.
Minimum wage commission within the framework of the conditions determined by law; It consists of 15 people in total, including 5 representatives from workers, employers and the government. In recent years, the workers’ side is represented by Türk-İş, and the employers’ side is represented by TİSK (Turkish Employer Unions Commission). The Minimum Wage Determination Commission, under the coordination of the Ministry of Family, Labor and Social Services, manages the wage determination process to cover all business lines.
How is the minimum wage determined?
The process of determining the minimum wage in Turkey consists of meetings and negotiations held with worker and employer representatives and the participation of the government. Here are the steps in the process of determining the minimum wage:
- Requests of the Parties: Worker and employer representatives determine the minimum wage demands and conditions for the relevant year. Both parties present their demands, taking into account the interests of the segment they represent.
- Meetings: A meeting is held each hosted by the employee and the employer. In these meetings, the parties negotiate by conveying their demands and justifications to the other party.
- Government Recommendation: The government, through the Turkish Statistical Institute (TUIK), makes a proposal to determine the minimum wage. TurkStat prepares a recommendation using data such as economic indicators and living costs.
- Interviews: Worker and employer representatives and government officials meet at least three times to negotiate. In these negotiations, the parties evaluate the proposed minimum wage amount, discuss their demands and try to reach a compromise.
- Rating: In the fourth meeting held after the negotiations, one of the members determined by the ministry presides. The commission meets with the participation of at least 10 members and voting is held. The minimum wage amount is determined as a result of voting by majority vote. In case of a tie, the choice of the party with the chairman is considered the minimum wage.
The determined minimum wage amount comes into force after being approved by the government and is valid for the relevant year.
The information mentioned above gives the general outline of the process of determining the minimum wage. However, the process may have different details and change every year. It is important to consult official sources to keep up to date with information.
Change of minimum wage in recent years
- year 2018 Net 1.603,12 TL – Gross 2.029,50 TL
- year 2019 Net 2.020,90 TL – Gross 2.558,40 TL
- year 2020 Net 2.324,71 TL – Gross 2.943 TL
- year 2021 Net 2.825,90 – Gross 3,577.50 TL
- year 2022 Net 4,253.40 TL – Gross 5,004 TL (increase dated 17.12.2021 / 31692)
- year 2022 Net 5,500.35 TL – Gross 6,471 TL (increase dated 1.07.2022 / 31883)
- year 2022 Net 8,506.80 TL – Gross 10,008 TL (increase dated 29.12.2022 / 32058)
- year 2023 Net 11,402.32 TL – Gross 13,414.50 TL (20.06.2023)
You can access the minimum wage change table in detail at csgb.gov.tr.
Minimum Wage for 2023 According to the commission discussions, the minimum wage was determined as 11,402.32 TL per month.
To follow current information and access accurate information blog.kredim.com.tr and you can follow official sources.