It has been decided that the net minimum wage to be applied in 2023 will be 8,506 Turkish Lira. Accordingly, employees working for minimum wage in 2023 will receive a net amount of 8,506 TL. The gross minimum wage, which was increased by 54.5%, was set at 10,008 Turkish Lira.
In July 2022, the employer cost for the minimum wage of 7,603 Turkish Lira was 11,750 Turkish Lira according to the new minimum wage regulation. The employer’s cost for the net minimum wage of 8,506 TL, in addition to the gross minimum wage of 10,008 Turkish Lira, includes a 15.5% Social Security Institution (SGK) employer premium and a 2% employer unemployment insurance premium, totaling 12,250 Turkish Lira. However, employers who make timely payments to SGK can reduce their cost to 11,750 Turkish Lira with a 5% discount.
The calculation of the net minimum wage is made by taking into account the minimum wage, Social Security Institution (SGK) premium, unemployment insurance premium, and total deductions. When calculating the employer's cost of the minimum wage, the items considered are the minimum wage, the employer's share of the SGK premium, the employer's unemployment insurance premium, and other deductions. How is the Severance Pay of a Minimum Wage Worker Calculated?
Severance pay is compensation paid by the employer to workers who meet the conditions specified by law when their employment contract ends under the conditions also defined by law.
The wage used as the basis for calculating the severance pay of an eligible worker is the wage earned by the worker in their last month. When considering this wage, items such as transportation, meal allowances, and bonuses provided to the worker are also included, and the severance pay is calculated based on this gross wage including these benefits. In 2023, the severance pay for a minimum wage worker who qualifies for it is calculated by multiplying the number of years the worker has worked by the gross wage including benefits earned in the last month.
For example, the severance pay for a minimum wage worker who has worked for 6 years and whose employment contract ended in 2023 will be the gross minimum wage of 10,008 Turkish Lira multiplied by the number of years worked, resulting in 60,048 Turkish Lira.
How is the Notice Compensation for a Minimum Wage Worker Calculated?
Notice compensation is the payment that the party who terminates the employment contract without adhering to the legally prescribed notice periods is obliged to pay to the other party.
The wage used as the basis for calculating the notice compensation is the employee’s gross monthly salary earned in the last month. This amount is calculated on a weekly basis and then multiplied by the statutory notice period corresponding to the employee’s length of service.
