Net Calculation of Minimum Wage and Its Cost to the Employer

The Ministry of Labour and Social Security announced a new net minimum wage of TRY 5,500.00 to be applied between 01/07/2022 and 31/12/2022. The minimum wage cost calculations for employers under the new regulation are as follows.

NET CALCULATION OF MINIMUM WAGE AND ITS COST TO THE EMPLOYER

01/07/2022 – 31/12/2022

NET MINIMUM WAGE CALCULATION (TRY/MONTH)

MINIMUM WAGE: 6,471.00 TRY

SSI PREMIUM (14%): 905.94 TRY

UNEMPLOYMENT INSURANCE PREMIUM (1%): 64.71 TRY

TOTAL DEDUCTIONS: 970.65 TRY

NET MINIMUM WAGE: 5,500.35 TRY

COST TO THE EMPLOYER (TRY/MONTH)

MINIMUM WAGE: 6,471.00 TRY

SSI PREMIUM 15.5% (Employer Share) (*): 1,003.01 TRY

EMPLOYER UNEMPLOYMENT INSURANCE PREMIUM 2%: 129.42 TRY

TOTAL COST TO EMPLOYER: 7,603.43 TRY

Note: Income tax and stamp duty have not been calculated.

(*) Pursuant to Article 81(ı) of Law No. 5510, a 5-point reduction in the employer share of SSI premium is envisaged for qualifying employers; calculations have been made accordingly. For employers who do not meet the conditions, the employer share of SSI premium is 20.5%.