06.07.2022/48
About the New Minimum Wage and Employer Support
Determination of the New Minimum Wage
According to the Minimum Wage Determination Commission’s decision published in the Official Gazette dated 01.07.2022, number 31883 (Repeated), the net minimum wage for the period between 01.07.2022 and 31.12.2022 has been set at 5,500.35 TL. Accordingly, there has been a 29.3% increase, amounting to 1,246.95 TL in the minimum wage.
The employer’s share of SGK has increased from 775.62 TL (considering the 5% discount) to 1,003.01 TL, and the SGK Unemployment Fund contribution has increased from 100.08 TL to 129.42 TL. As a result, the employer’s cost of the minimum wage has risen from 5,879.70 TL to 7,603.43 TL.
A comparative table regarding the employer’s cost of the minimum wage is below:
| According to the January-June/2022 Period (TL) | According to the July-December/2022 Period (TL) | Difference (TL) | |
| Net Minimum Wage (Monthly) | 4,253.40 | 5,500.35 | 1,246.95 |
| Gross Minimum Wage (Monthly) | 5,004.00 | 6,471.00 | 1,467.00 |
| Minimum Wage Income Tax Exemption (Annual) | 9,063.92 | 10,627.00 | 1,563.08 |
| Employer’s SGK Contribution (%15.50) (Considering 5% Regular Payment Discount) | 775.62 | 1,003.01 | 227.39 |
| SGK Employer’s Unemployment Contribution for Minimum Wage Workers (%2) (Monthly) | 100.08 | 129.42 | 29.34 |
| Total Employer Cost for Minimum Wage Worker (Monthly) | 5,879.70 | 7,603.43 | 1,723.73 |
Employer Support for Minimum Wage
With the publication of Law No. 7417 in the Official Gazette dated 05.07.2022, an additional Temporary Article 88 was added to Law No. 5510 regarding minimum wage support. According to this:
Employers who employ insured persons under the long-term insurance branches of Article 4(1)(a) of Law No. 5510, will benefit from the following support:
– For workplaces registered in 2021:
- Insured persons with a reported daily wage of 179 Turkish Liras or less,
- For workplaces owned by private sector employers subject to a collective labor agreement under Law No. 6356, with insured persons reported at 358 Turkish Liras or less,
- For workplaces extracting “Lignite” and “Hard Coal” with underground workers, insured persons reported at 477 Turkish Liras or less,
– For workplaces newly included in the scope of this law in 2021, insured persons reported from these workplaces:
The total number of premium payment days for these workplaces for the period between July and December 2022 will be multiplied by 3.33 Turkish Liras, and the resulting amount will be deducted from the employer’s insurance premiums owed to the institution. This amount will be covered by the Unemployment Insurance Fund.
In addition, if fewer insured persons than the number reported in the premium and service document for the period from January to December 2021 are reported, these provisions will not apply.
If it is determined that fraudulent transactions are conducted or if the insured persons’ premium-based earnings for the July to December 2022 period have not been reported or have been reported incorrectly, the amounts covered by the Unemployment Insurance Fund will be reclaimed with penalties and interest. Furthermore, if it is determined that the employer has reported premiums less than one-tenth of the monthly gross minimum wage for the relevant month, the provisions of this article will continue to apply provided that the employer rectifies the shortfall within 15 days upon notice.
You can access the relevant Minimum Wage Determination Commission Decision here.
You can access the relevant Law here.
Best regards,
BİLGENER
