[Turkey] 2023 changes to minimum wage, severance payments and admin fines

[Turkey] 2023 changes to minimum wage, severance payments and admin fines
18 Jan 2023

At the beginning of each year in Turkey, the minimum wage, severance payments and administrative fines prescribed by the Labour Act are revised. ICLG.com offers an overview of the 2023 changes, which came into effect on January 1, 2023.

Minimum wage

In 2022, Turkey’s monthly minimum wage rate was 5,004 Turkish liras (gross). This was increased to 6,471 Turkish liras (gross) as of July 1, 2022. From January 1, 2023, this has increased to 10,008 Turkish liras (gross).

The minimum wage reportedly applies to all employees, regardless of their age, industry and experience. The sole exception relates to employees who work in underground coal and lignite mines, where the minimum wage must equal at least twice the regular rate.

Severance payments

Employees are entitled to a severance payment of one month's salary for each year of service if they are dismissed, subject to several conditions. The Turkish government has determined a ceiling for such payments on a six-month basis. From January 1, 2023, to June 30, 2023, the maximum severance payment has increased from 10,848.59 Turkish liras (gross) to 19,982.83 Turkish liras (gross). The next adjustment to the maximum severance payment will reportedly be made on July 1, 2023.

Administrative fines

Several administrative fines are regulated under the Labour Act, including fines for a failure to:

  • ensure the equal treatment of employees;
  • pay the minimum wage;
  • hire disabled persons; and
  • follow collective redundancy procedures.

Administrative fines are also revised once a year. The rate of administrative fines in 2023 has increased by 122.93 per cent, compared with 2022.


Source: ICLG.com

At the beginning of each year in Turkey, the minimum wage, severance payments and administrative fines prescribed by the Labour Act are revised. ICLG.com offers an overview of the 2023 changes, which came into effect on January 1, 2023.

Minimum wage

In 2022, Turkey’s monthly minimum wage rate was 5,004 Turkish liras (gross). This was increased to 6,471 Turkish liras (gross) as of July 1, 2022. From January 1, 2023, this has increased to 10,008 Turkish liras (gross).

The minimum wage reportedly applies to all employees, regardless of their age, industry and experience. The sole exception relates to employees who work in underground coal and lignite mines, where the minimum wage must equal at least twice the regular rate.

Severance payments

Employees are entitled to a severance payment of one month's salary for each year of service if they are dismissed, subject to several conditions. The Turkish government has determined a ceiling for such payments on a six-month basis. From January 1, 2023, to June 30, 2023, the maximum severance payment has increased from 10,848.59 Turkish liras (gross) to 19,982.83 Turkish liras (gross). The next adjustment to the maximum severance payment will reportedly be made on July 1, 2023.

Administrative fines

Several administrative fines are regulated under the Labour Act, including fines for a failure to:

  • ensure the equal treatment of employees;
  • pay the minimum wage;
  • hire disabled persons; and
  • follow collective redundancy procedures.

Administrative fines are also revised once a year. The rate of administrative fines in 2023 has increased by 122.93 per cent, compared with 2022.


Source: ICLG.com

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