At the beginning of each year, the minimum wage, severance payments and administrative fines prescribed by the Labour Act are revised. On 1 January 2022, the changes for 2022 came into effect.
In 2021 the monthly minimum wage rate was TRY3,577.50 (gross). As of 1 January 2022, this has increased to TRY5,004.00 (gross). The new rate applies from 1 January 2022 to 31 December 2022.
The minimum wage applies to all employees, regardless of age, industry and experience. The only exception concerns employees working at underground coal and lignite mines, where the minimum wage must equal at least twice the regular rate (i.e., the monthly minimum wage for coal and lignite miners is TL10,008.00 (gross)).
With the Law Amending the Income Tax Law and Certain Laws published in the Official Gazette dated 25 December 2021 and numbered 31700, the wage net of the social security contributions and unemployment insurance is exempted from the income tax and the portion of the monthly salary up to the gross monthly minimum wage is exempted from the stamp tax.
Subject to several conditions, employees are entitled to a severance payment of one month's salary for each year of service on the termination of their employment. The government determines a ceiling for such payments on a six-month basis. From 1 January 2022 to 30 June 2022, the maximum severance payment has increased from TL7.638,69 (gross) to TL10,848.59 (gross). The next adjustment to the maximum severance payment will be made on 1 July 2022.
Several administrative fines are regulated under the Labour Act, including fines for a failure to:
- ensure the equal treatment of employees;
- pay the minimum wage;
- hire disabled persons; or
- follow collective redundancy procedures.
Administrative fines are also revised once a year. Compared with 2021, the rate of administrative fines in 2022 has increased by 36.20%.
First published by ILO - Employment & Immigration Newsletter in 14.02.2022.