Different formulas emerge for the minimum wage: Here are the possible scenarios
Minimum wage negotiations, eagerly awaited by millions of employees, begin on December 10. Many options are on the table, involving inflation expectations and various increase formulas.
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A critical process is beginning for the new minimum wage, which is eagerly awaited by millions of employees in Turkey. The first meeting of the Minimum Wage Determination Commission will be held on December 10. At the end of the process, the 15-member commission, consisting of representatives from workers, employers, and the government, will determine the 2024 minimum wage.
The Impact of the Minimum Wage Will Be Significant
The new minimum wage will directly affect not only employee salaries but also many payment and debt items. Here are the main items that the minimum wage will change:
The tax-exempt earnings amount for employees will increase.
The base amount for severance pay will rise.
There will be an increase in allowances such as unemployment benefits and sick pay.
Birth and military service debt payments will increase.
Intern salaries and disability benefits will be renewed.
What Are the Formulas on the Table?
How the minimum wage, which was set at 20,002 TL gross and 17,002 TL net with a 49 percent increase last year, will be determined this year is a subject of great curiosity. The 41.5 percent inflation expectation in the Medium-Term Program and the 44 percent inflation expectation of the Central Bank are among the most important references.
In Case of a 41.5 Percent Increase:
Gross Wage: 28,303 TL
Net Wage: 24,058 TL
Cost to Employer: 33,257 TL
In Case of a 44 Percent Increase:
Gross Wage: 28,803 TL
Net Wage: 24,483 TL
Cost to Employer: 33,844 TL
Alternative Scenarios Are on the Agenda
It is stated that calculation methods other than inflation will also be evaluated. Different scenarios based on the average of the next year's and the current year's inflation rates are also on the table.
In Case of a 25 Percent Increase:
Gross Wage: 25,003 TL
Net Wage: 21,253 TL
Cost to Employer: 29,379 TL
In Case of a 30 Percent Increase:
Gross Wage: 26,003 TL
Net Wage: 22,103 TL
Cost to Employer: 30,554 TL
In Case of a 35 Percent Increase:
Gross Wage: 27,003 TL
Net Wage: 22,953 TL
Cost to Employer: 31,730 TL