Critical day on minimum wage in Turkey

The last meeting of the “Minimum Wage Commission” which aims to determine the minimum wage for the year 2023 by a joint decision of the employer and the government, will start at 14.00 today. The parties are expected to reach a compromise at today’s meeting.

The first meeting of the commission was held on December 7, the second on December 14. For the third meeting, the date of December 21 was originally foreseen, but the date was taken to today.

The Confederation of Employers’ Unions of Turkey (TISK) represents the employer side of the Commission during the negotiations, and the Confederation of Labor Unions of Turkey (Türk-Iş) represents the employee side. On the other hand Labor Minister Vedat Bilgin represents the government.

TÜRK-IŞ REMINDED HUNGER LIMIT OF 7 THOUSAND 785 TL

The minimum wage was set at a net amount of 4 thousand 253 TL for 2022, and in the middle of the year it was increased again to approximately 5,500 TL. In addition, stamp duty on the minimum wage and income tax for all employees up to the minimum wage were abolished effective from the beginning of 2022.

The labor side also argues that there should be regulation on the taxation of the minimum wage. According to the Ministry’s data, 37 percent of private sector employees are on the minimum wage.

Although Türk-Iş President Atalay said that their minimum wage red line was 7 thousand 785 TL, the other participants have not yet pronounced a figure.

PARTIES EXPECTED TO RECONCILE TODAY

Due to the fact that the election will take place no later than June 2023, the direct and indirect effects of inflation at the level of 85 percent, the minimum wage, EYT (victims of delayed pension age), and price increases for civil servants and pensioners continue to be monitored in the market.

In addition, the effects of the process on the Treasury and the Unemployment Insurance Fund are also monitored.

President Tayyip Erdogan had met with Treasury and Finance Minister Nureddin Nebati and Bilgin last month about the minimum wage and the employer’s costs of EYT.

Commission participants say that as of today, the third meeting, they aim to determine the minimum wage unanimously.