What Is Minimum Wage? How Much Is the Minimum Wage in Türkiye (2025)?

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What Is Minimum Wage?

Minimum wage refers to the amount paid to workers for a standard workday and is determined at a level sufficient to meet the essential needs of the worker—such as food, housing, clothing, health, transportation, and culture—based on current prices. In other words, it is the legally mandated lowest amount that can be paid to a worker and is set at a level that enables employees to meet their basic needs. According to Article 39 of the Labor Law No. 4857, the minimum wage can be determined by the "Minimum Wage Determination Commission" at least once every two years; however, in practice, it is determined at least once a year. Its definition and application affect not only the employee's income but also various areas from social security contributions to tax practices. Therefore, employers are prohibited from paying below the determined amount and are subject to sanctions. Employers who fail to pay or underpay the minimum wage are subject to an administrative fine of 2,179 TRY for each employee and for each month.

What Is the Minimum Wage for 2025 in Türkiye?

According to the announcement made by the Ministry of Labor and Social Security, the minimum wage for the year 2025 has been determined as follows, effective from January 1, 2025:

• Daily Gross Wage: 866.85 TRY
• Monthly Gross Wage: 26,005.50 TRY
• Monthly Net Wage: 22,104.67 TRY

To preserve purchasing power considering inflation rates, the minimum wage increase for 2025 has been implemented at a rate of 30%.

How Is the Minimum Wage Determined?

The minimum wage is set to cover all sectors and is fundamentally determined on a daily basis. In cases where the wage is paid monthly, weekly, hourly, per piece, or based on the value of the work performed, necessary adjustments are made based on this daily basis.

Minimum wage calculation starts from the gross amount, and after deducting various legal withholdings, the net amount received by the employee is obtained. The most significant of these deductions include the SSI (Social Security Institution) employee contribution (14%), unemployment insurance contribution (1%), and if applicable, income and stamp taxes. However, with the regulation that came into force in 2022, the income and stamp taxes on the minimum wage have been abolished, thereby increasing the employee's net income.

The standard calculation based on the minimum wage effective as of 2025 is as follows:

• Daily Gross Wage: 866.85 TRY
• Monthly Gross Wage: 26,005.50 TRY
• SSI Employee Contribution (14%): 3,640.77 TRY
• Unemployment Insurance Contribution (1%): 260.06 TRY
• Income Tax: 0 TRY (exempt)
• Stamp Tax: 0 TRY (exempt)

After these deductions, the net amount received by the employee is calculated as 22,104.67 TRY.

An important point to note here is that the minimum wage exemption applies only to employees earning income at the minimum wage level. For employees earning higher salaries, only the portion equivalent to the minimum wage is exempt from tax; the remaining amount is subject to tax calculation.

Click here for detailed information about the 2025 income tax brackets in Türkiye.

Distinction Between Gross and Net Minimum Wage

The concepts of "gross" and "net" wages, which are frequently encountered in employment contracts, are fundamental terms that must be clearly understood in employee-employer relationships. Gross wage refers to the total amount accrued by the employer to the employee, including SSI premiums, unemployment insurance, and taxes. Net wage, on the other hand, refers to the actual amount the employee receives after these deductions.

To illustrate using the minimum wage effective in 2025:

• Gross 26,005.50 TRY
• Net 22,104.67 TRY

This difference arises from exemptions and deductions. Especially in wage negotiations with the employer, it is crucial to know which figure is being used as the basis, as it plays a significant role in payroll calculations. To avoid misunderstandings, it is important that this distinction is clearly specified in employment contracts.

What Is the Employer's Cost of the Minimum Wage?

The minimum wage paid to an employee not only refers to the net amount received by the worker but also represents the total cost to the employer, including SSI and unemployment insurance contributions. Accurately calculating this cost is critically important for employers in terms of payroll budgeting, workforce planning, and annual financial burden analysis.

As of 2025, the cost of one employee to the employer is calculated as follows:

• Gross wage: 26,005.50 TRY
• SSI employer contribution (16.75%): 4,355.92 TRY
• Unemployment insurance employer contribution (2%): 520.11 TRY
• Total cost: 30,881.53 TRY
• Total cost (without incentive): 31,921.75 TRY

However, an important factor here is SSI incentives. Under Article 81 of Law No. 5510, if employers are eligible for the 4-point contribution discount incentive, the portion of the employer's share of the disability, old-age, and death insurance calculated over the employee's social security base amount—equivalent to 4 points—is covered by the Ministry of Treasury and Finance. For workplaces operating in the manufacturing sector, the discount rate is applied as 5 points until the end of 2026.

Conditions for benefiting from this incentive include paying SSI premiums within the legal deadline, not employing unregistered workers, and not having any outstanding tax or SSI debts. Therefore, each employer must conduct a tailored cost analysis and manage SSI incentive tracking professionally in order to gain a significant advantage.

Additionally, for SMEs employing multiple workers, every increase in the minimum wage significantly raises the total payroll burden. For this reason, annual salary increase planning should be based not only on the net salary but also on the employer's cost.

*Calculations are based on the 4-point reduction rate.

*For employers who do not meet the eligibility criteria, the employer's SSI contribution rate is 20.75%. In this case, the total employer cost will be 31,921.75 TRY.

How Does the Minimum Wage Determination Commission Work?

In Türkiye, the legal authority responsible for determining the minimum wage is the Minimum Wage Determination Commission. The structure of this commission consists of a tripartite body that includes representatives from workers, employers, and the state, and its procedures are governed by Article 39 of the Labor Law No. 4857 and the Minimum Wage Regulation.

The commission consists of 15 members:

The commission is chaired by a member appointed by the Ministry and includes:

• The Director General of Labor of the Ministry or their deputy
• The Director General of Occupational Health and Safety of the Ministry or their deputy
• The Head of the Department of Economic Statistics of the State Institute of Statistics or their deputy (specifically the Department of Labor Force, Services, Price Statistics, and Indexes)
• A representative from the Undersecretariat of Treasury
• The head or an authorized official from the relevant department of the State Planning Organization
• Five representatives selected by the most representative labor union confederation across various sectors
• Five representatives selected by the most representative employers' union confederation across various sectors

The Commission generally convenes in December to determine the minimum wage for the following year. However, during periods of high inflation, a mid-year adjustment may also be considered—an approach that has been frequently adopted in recent years.

Meetings typically occur in several rounds. In each round, parties evaluate parameters such as economic indicators, cost-of-living indices, hunger and poverty thresholds, data from TÜİK (Turkish Statistical Institute), employer cost burdens, and employee purchasing power, and submit their proposals accordingly.

As a result, the Commission meets with the participation of at least ten members and sets the new minimum wage by majority vote, after which the decision is published in the Official Gazette and enters into force.

Beyond determining the wage level, the Commission's decisions also directly impact a wide range of social and economic areas such as unemployment benefits, severance pay ceilings, administrative fines, and social assistance programs, thus exerting a macro-economic influence far beyond wage regulation alone.

Income Tax and Stamp Tax Exemption on Minimum Wage

One of the most significant regulations introduced as of 2022 was the exemption of the minimum wage from taxation. This policy not only increased employees' net salaries but also marked the beginning of a new era in payroll practices for employers. In line with the amendments to Article 23 of the Income Tax Law No. 193, and the adjustments made in the annexed Table (1) of the Stamp Tax Law, exemptions for income tax and stamp tax were implemented.

Within this scope:

1. Income Tax Exemption: Income at the minimum wage level is exempt from income tax. This does not apply solely to minimum wage earners; employees earning higher wages also benefit, as only the portion equivalent to the minimum wage is exempt from tax in their earnings.
2. Stamp Tax Exemption: For employment contracts corresponding entirely to the minimum wage, stamp tax is not collected. Thus, the stamp tax burden is eliminated for employers.

These tax exemptions not only increase employees' net income but also reflect the government's intent to enhance social equity in its wage-related tax policies. However, one critical point must be noted: for employees earning above the minimum wage, only the portion up to the minimum wage is exempt from tax, while the remaining portion is subject to taxation. Clearly reflecting this distinction in payroll records is essential for transparency.

SSI Premiums, Unemployment Insurance, and Payroll Impact

The determination of the minimum wage affects not only the employee's salary but also the SSI premium base, unemployment insurance deductions, severance pay calculations, maternity and military service debt payments, retirement pensions, and even the minimum and maximum limits for administrative fines. For this reason, the minimum wage serves as a central reference value in payroll systems.

As of 2025, the statutory deductions based on the gross minimum wage are as follows:

• SSI Employee Contribution (14%): This is the employee's contribution to the social security system. It covers retirement, healthcare, and short-term insurance branches.
• Unemployment Insurance Employee Share (1%): This is the employee's contribution to the unemployment benefit system, which provides support in the event of job loss.
• SSI Employer Contribution (20.75%): These are long-term insurance branch contributions paid by the employer. If an incentive applies, this rate can be reduced by 5 points to as low as 15.75%.
• Unemployment Insurance Employer Share (2%): This is the employer's contribution to the unemployment insurance system.

In line with these rates, payroll arrangements based on the minimum wage reflect approximately 15% of the gross wage as employee deductions and 17.75% as the employer's contribution to the system.

Impacts of Minimum Wage on Payroll

The minimum wage also serves as a benchmark for numerous applications such as the severance pay ceiling, SSI administrative fines, support programs for employees with disabilities, maternity and military service debt payments, service credit purchases, SSI incentive limits, and criteria for scholarships and social assistance. In this respect, it should not be viewed solely as a wage-setting instrument, but rather as a cornerstone of the social security system.

Minimum Wage Amounts by Year in Türkiye (2014–2025)

Notes:

• As of 2016, the minimum wage began to be implemented as a single fixed amount throughout the year.
• In 2022 and 2023, due to high inflation, the minimum wage was increased twice within the same year.
• Starting from 2022, income tax and stamp tax on the minimum wage were abolished, resulting in an increase in employees' net income.

This table illustrates how the minimum wage has changed over the years and how it has been shaped by economic conditions. In particular, the high inflation and economic fluctuations of recent years have led to more frequent and substantial increases in the minimum wage.

Economic and Social Impacts of the Minimum Wage

Increases in the minimum wage do not only affect employee income. They also exert strong influence in the following areas:

• Inflation Dynamics: Minimum wage hikes can directly impact consumer prices, particularly in the service sector. Therefore, inflation must be carefully considered when determining the raise rate.
• Employment Costs: SSI contributions and labor expenses added to payroll increase the financial burden on SMEs and employers hiring new staff. This necessitates more cautious wage planning strategies.
• Payroll Transparency: The distinction between net and gross amounts is critically important in fulfilling employees' income expectations. Transparent payroll practices are thus essential for employee satisfaction and employer accountability.
• Social Policy Objective: The minimum wage also serves as a benchmark for the poverty line. It is used as a basis in financial support mechanisms such as social aid programs, child payments, and housing assistance. Accordingly, a consistently determined minimum wage directly influences social welfare.

Conclusion

For the year 2025 in Türkiye, the minimum wage has been set at 26,005.50 TRY gross and 22,104.67 TRY net, with the employer's cost amounting to approximately 30,881.53 TRY when incentives are applied. These figures serve as critical reference points in payroll planning, social security analysis, and tax strategy development. The minimum wage is both a social tool for protecting workers' livelihood and a legal cost parameter that employers are obligated to follow.

• Minimum wage increases are directly linked to economic crises. The 30% raise in 2025 reflects this reactive policy.
• Employers must prepare for these changes by updating payroll software, SSI incentive planning, and ancillary service cost modeling.
• Legal obligations concerning the Labor Law and minimum wage (Articles 39 of Law No. 4857, Article 81 of Law No. 5510, and stamp tax provisions of the Tax Procedure Law) must be regularly monitored.
• In today's labor market, wage levels approaching the minimum wage may trigger regulatory restructuring of legal thresholds, which directly affects lower- to middle-income groups.