2019 ESTIMATION FOR MINIMUM WAGE AND COST OF EMPLOYER

TCMB (Turkish Central Bank) 2018 year-end inflation forecast is 23,5%. On the other hand the Ministry of Finance and Treasury foresees the 2019 inflation rate as 15,9 in its “New Economic Plan” and pledges to fight against inflation.

In our opinion 2018 minimum wage-hike will probably be between those above rates, but we will provide you with three different calculation of minimum wage just to give you an idea about net and gross amounts.

ESTIMATED 2019 MINIMUM WAGE AND DEDUCTIONS TABLE

2019 MINIMUM WAGE AND DEDUCTIONS 15% Wage-hike 20% Wage-Hike 25%Wage-hike
GROSS MONTHLY MINIMUM WAGE 2333,93 2435,4 2536,88
SSI PREMIUM EMPLOYEE CONTRIBUTION (%14) 326,75 340,96  355,16
UNEMPLOYMENT PREMIUM EMPLOYEE CONTRIBITION ( % 1 ) 23,34 24,35  25,37
INCOME TAX BASE 1983,84 2.070,09  2.156,34
INCOME TAX AMOUNT 297,58 310,51 323,45
STAMP TAX 17,71 18,48  19,25
TOTAL DEDUCTIONS (Employee) 665,37 694,30 723,23
MINIMUM LIVING ALLOWANCE (Single) 175,04 182,65 190,26
2019 NET  MINIMUM WAGE ESTIMATION (MLA included) 1843,59 1.923,75 2.003,90

2019 ESTIMATED LABOR COST OF EMPLOYER

Employer’s labor cost consists of gross wage to be paid to employee plus employer share of SSI premiums and unemployment premium paid to related government institutions.

EMPLOYER COST

(with 5510 treasury incentive)

15%

Wage-hike

20%

Wage-hike

25% Wage-hike
GROSS MONTHLY MINIMUM WAGE 2333,93 2435,4 2536,88
SSI PREMIUM EMPLOYER CONTRRIBUTION (%15,5) 361,76 377,49 393,22
UNEMPLOYMENT PREMIUM EMPLOYER CONTRIBITION  ( % 2 ) 46,68 48,71 50,74
TOTAL COST OF EMPLOYER 2.742,37 2.861,60 2.980,83

In case the employer doesn’t benefit from 5510 incentive.

EMPLOYER COST

(without 5519 treasury incentive)

15%

Wage-hike

20%

Wage-hike

25%

Wage-hike

GROSS MONTHLY MINIMUM WAGE 2333,93 2435,4 2536,88
SSI PREMIUM EMPLOYER CONTRRIBUTION (%20,5) 478,46 499,26 520,06

UNEMPLOYMENT PREMIUM EMPLOYER CONTRIBITION

 ( % 2 )

46,68 48,71 50,74
TOTAL COST OF EMPLOYER 2.859,06 2.983,37 3.107,68

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