NEW MINIMUM WAGE AT TRY 5,500 IN NET TERMS

The Minimum Wage Determination Commission, consisting of the government, the Confederation of Turkish Trade Unions (TURK-IS) representing the employee segment, and the Turkish Confederation of Employers’ Association (TISK), representing the employer party, raised the minimum wage by 30% to TRY 5,500 in net terms, compared to the figure determined on January 1. The new minimum wage amount, announced by President Recep Tayyip Erdogan, will be valid until January 1, 2023. The minimum wage, which has been annually determined since 2016, was determined twice this year after annual inflation exceeded 70%. Thus, the minimum wage has been set twice in a year for the first time in six years.

The figure for the second half of 2022, corresponding to USD 328, barely kept the minimum wage dollar amount determined at the beginning of 2022. The old number, which stood at TRY 4,253 in net terms, fell to USD 264 due to the foreign exchange (FX) rate fluctuations. The minimum wage corresponded to USD 442 in 2016 when it was first determined once a year, fell to USD 396 in 2017, and rose to USD 425 in 2018. The figure was equivalent to USD 378 in 2019, USD 390 in 2020 and USD 383 in 2021. The minimum wage amount for the first half of 2022 corresponded to USD 316 before the FX rate fluctuation. HUSEYIN GOKCE