What Is the Minimum Wage in Turkey for 2025?
The Turkish government has set the minimum wage for 2025, which takes effect on January 1, 2025. The gross monthly minimum wage is 26,005.50 TRY, and the net monthly wage amounts to 22,104.67 TRY. This increase is aimed at helping workers cope with inflation and maintaining their purchasing power amidst economic challenges.
Key Figures for the 2025 Minimum Wage
- Daily Gross Wage: 866.85 TRY
- Monthly Gross Wage: 26,005.50 TRY
- Monthly Net Wage: 22,104.67 TRY
Understanding the Breakdown of the Minimum Wage
Gross Salary
The gross salary represents the total amount an employee earns before any deductions. These include contributions to social security, unemployment insurance, income tax, and stamp tax.
Net Salary
The net salary is the actual take-home pay after all legal deductions are subtracted. In 2025, this amounts to 22,104.67 TRY for employees earning the minimum wage.
Daily Wage
The daily gross wage of 866.85 TRY serves as the basis for calculating pay for part-time jobs, overtime hours, or severance packages.
Mandatory Deductions from the Minimum Wage
The gap between gross and net salary is due to several statutory deductions mandated by Turkish law:
- Social Security Premium (14%)
Employees contribute 14% of their gross income toward social security, which covers health insurance, retirement, and other benefits. - Unemployment Insurance Premium (1%)
A 1% deduction is made to provide financial support in case of job loss. - Income Tax Exemptions
Employees earning the minimum wage are exempt from income tax, thanks to a policy introduced in 2024. This exemption continues in 2025, ensuring that minimum wage earners have no income tax liability. - Stamp Tax (0.759%)
While stamp tax is generally calculated on gross income, it is waived for earnings up to the minimum wage.
Implications of the 2025 Minimum Wage Increase
The new minimum wage reflects efforts to address the rising cost of living and support economic stability.
Key Effects
- Improved Household Income
Higher wages enhance purchasing power, allowing workers to better manage living expenses such as rent, utilities, and groceries. - Increased Employer Costs
Businesses must account for higher costs due to increased social security and unemployment insurance contributions. - Boost to the Economy
With higher earnings, workers are likely to spend more, fueling demand in various sectors and contributing to economic growth.
Employer Costs for the Minimum Wage
Employers face additional financial responsibilities for each minimum-wage worker, including social security and unemployment insurance contributions.
| Description | Amount (TRY) |
|---|---|
| Gross Monthly Salary | 26,005.50 |
| Employer SSI Contribution (20.75%) | 5,396.14 |
| Unemployment Insurance (2%) | 520.11 |
| Total Employer Cost | 31,921.75 |
| With 5% SSI Discount | 30,621.48 |
Employers who meet specific criteria are eligible for a 5% reduction in their SSI contribution rate.
Context and Considerations
How Does This Compare to Previous Years?
The minimum wage for 2025 continues the trend of annual adjustments aimed at countering inflation and economic fluctuations.
Regional Competitiveness
Turkey’s minimum wage remains attractive compared to neighboring countries, drawing foreign investments while providing fair compensation to workers.
Cost of Living Debate
Despite the wage increase, there is ongoing discussion about whether it is sufficient to cover essential expenses like housing, transportation, and food.
Example Payroll Calculations
Net Salary for 2025 Minimum Wage
| Description | Amount (TRY) |
|---|---|
| Gross Minimum Wage | 26,005.50 |
| Employee SSI Contribution (14%) | 3,640.77 |
| Unemployment Insurance (1%) | 260.06 |
| Net Salary | 22,104.67 |
Employer Cost for 2025 Minimum Wage
| Description | Amount (TRY) |
|---|---|
| Gross Minimum Wage | 26,005.50 |
| Employer SSI Contribution (20.75%) | 5,396.14 |
| Unemployment Insurance (2%) | 520.11 |
| Total Employer Cost | 31,921.75 |
Impacts on Stakeholders
For Employers
Employers need to allocate additional resources to manage rising payroll costs. Businesses eligible for the SSI discount should leverage this opportunity to reduce expenses.
For Employees
The increase in net salary provides much-needed financial relief, especially for low-income workers. Tax exemptions ensure that workers retain a greater portion of their earnings.
For the Economy
Higher wages encourage consumer spending, driving growth across various industries and stimulating the economy as a whole.
For further assistance with payroll calculations or to better understand the 2025 minimum wage regulations, consult your payroll provider or legal advisor.
