Comparision Tables of 2015/2016 Minimum Wages and Their Cost to Employers

comparision tables of 2015 2016 minimum wages and their cost to employers 1It seems that this year will be costlier than the last, since the Minimum wage has been raised to 1.647,00 TL starting from 1st January 2016, while it was 1.273,50 TL in 2015, and the wage hike is about %30.

In the tables below you can see the comparison tables as regard to last two years’ gross and net minimum wages and their cost to employers.





2016 Payroll Parameters

2016-payroll-parametersIn Turkey, Payroll Parameters are strictly connected with minimum wage usually determined twice to cover the first and second half of the year; however as an exception minimum wage of 2016 has been raised for ones and will be the same all along the 2016. As result of this only a few items, most important of which is the cap of severance pay have been changed as it will be seen table below.

Expected Incentives For Minimum Wage Rise

expected-incentives-for-minimum-wage-riseIt is almost certain that monthly net minimum wage will be raised to 1.300 Turkish Liras starting from January 2016. However,  many confusing hearsays on the subject are floating around as to what could be the incentives and subsidies to reduce to burden of private sector employers, nothing is clear so far and it seems that the new minimum wage is expected to cause an approximately %30 increase on the employers' labor cost.

1.300,00 TL Net Minimum Wage Means 2.016,11 TL Labor Cost for Employers

The significant raise is only matter of time now and Minimum Wage Determination Commission's decision has become a most concerned subject for the private sector employers, because of inevitable increase on employment cost to be faced with in the oncoming year and years as well. Our estimated cost of net minimum wage (Minimum Living Allowance included, incentives excluded) to employer is about 2.016,11 TL. In case of application of 5% incentive provided by Law No. 5510, the cost will be about 1,933,82 TL.

Work on Republic Day 29th October

29-ekim-tatilinde-calisilabilir-mi29th October Republic Day is the only National Day on which the proclamation of the republic in 1923 is celebrated.  Because of some contradictory provisions in legislation it becomes a controversial issue whether working on national day is prohibited or not.

As per the 1st Article of Law on National and Public Holidays No. 2429; "29th October is National Day, starts from 28th October, 13.00 o’clock and continues during 29th October."

Article 2 states that “on national, official and religious holidays, public sector agencies shall be on vacation.
And Article 2, last paragraph stipulates that; “private sector workplaces shall be closed on 29th October.”

However, this prohibition does not apply to establishments and workplaces, such as hospitals, airports, bakeries, hotels and so on, which have to work continuously by nature of their services.

As it is seen, while on national and general holiday’s only public sector agencies must be closed for vacation, working on 29th October is banned for the private sector workplaces according to above said Law, which is in contradiction with the Labor Law, No. 4857, and that is where the questions arise from.

Frequent Mistakes on Employment Contracts And Employers' Liability

is-sozlesmelerinde-isverenlerin-en-cok-yaptigi-hatalarEmployment Contracts in Turkish legislation do not much vary from those in European countries. In this article we are going to discuss the some misunderstandings and frequent mistakes and the potential penal provisions to be faced as regard to employment contracts.

What is an Employment Contract?

It is an agreement whereby a person agrees to work as an employee and the employer undertakes to pay the wages for the work performed.
Unless otherwise stipulated in the Act, an employment contract does not have any special form. There is a legal requirement for contracts to be in writing if they are signed for a fixed time of one year or more.

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