Ortak
Newsletter
Practical information guide for 2024
You will find below some practical information regarding employment and litigation practices that apply in 2024. Please note that the information mentioned is updated every year, in accordance with the legislation.
LABOUR AND SOCIAL SECURITY LAW
Minimum Wage
Information on the minimum wage to be applied between 1 January 2024 and 31 December 2024:
| GROSS AMOUNT OF DAILY AND MONTHLY MINIMUM WAGE | |
| Minimum Wage Daily Amount | Minimum Wage Monthly Amount |
| TRY 666.75 | TRY 20,002.50 |
| LEGAL DEDUCTIONS FROM MINIMUM WAGE | |
| Employee’s Share of Insurance Premium (%14) | TRY 2,800.35 |
| Employee’s Contribution to Unemployment Insurance (%1) | TRY 200.03 |
| Income Tax and Stamp Duty | TRY 0 |
| Net Minimum Wage | TRY 17,002.12 |
| MINIMUM WAGE TOTAL COST FOR EMPLOYER | |
| Gross Minimum Wage | TRY 20,002.50 |
| Employer Share of Insurance Premium (20.5%) | TRY 4,100.51 |
| Employer SSI Incentive (5%) | TRY (-1000.12) |
| Employer Unemployment Insurance Fund (2%) | TRY 400.05 |
| Total Cost for the Employer | TRY 23,502.94 |
We also would like to remind you that the minimum living allowance was repealed as of 1 January 2022.
Severance Pay
The maximum gross wage to be used as basis for calculating severance pay has increased to TRY 35,058.58 per month, applicable from 1 January 2024 to 30 June 2024. The amount for the second half of the year will be determined at a later time.
Stamp duty of 0.759% is deducted from the severance pay paid to employees. No other deductions are made from severance pay.
Minimum and Maximum Insurance Premium Fees
Minimum and maximum insurance premium fees to be applied between 1 January 2024 and 31 December 2024:
| MINIMUM AND MAXIMUM AMOUNTS OF MONTHLY INSURANCE PREMIUM FEES | |
| Minimum Monthly Fee | Maximum Monthly Fee |
| TRY 20,002.50 | TRY 150,018.90 |
Administrative Fines For Unlawful Acts according to Labour Law No 4857
| UNLAWFUL ACT | ADMINISTRATIVE FINE |
| Violation of the obligation to notify the workplace | TRY 167,473 (separately for the principal and sub-employer, or their representatives whose duty it is to notify the workplace) |
| Violation of the equal treatment principle for employees | TRY 1,402 (per employee affected) |
| Violation of temporary employment relationship obligations | TRY 2,345 (per employee affected) |
| Violation of Article 7/2-f regarding a temporary employment relationship | TRY 9,381 |
| Violation of the obligation to provide a written document regarding the content of the employment contract | TRY 1,402 (per employee affected) |
| Violation of on-call and remote work provisions | TRY 1,402 (per employee affected) |
| Violation of the obligation to provide an Employment Certificate | TRY 1,402 (per employee affected) |
| Violation of the collective dismissal procedure | TRY 5,506 (per employee affected) |
| Violation of the obligation towards disabled employees and ex-offenders | TRY 20,901 (per disabled and ex-offender as required per month) |
| Intentionally failing to pay or partially paying the salary arising from this law, a collective bargaining agreement or an employment agreement | TRY 1,515 (per employee affected, per month) |
| Violation of the obligation to pay salary and all other financial benefits to a specially opened bank account | TRY 1,515 (per employee affected, per month) |
| Violation of the obligation to issue a pay slip | TRY 5,506 |
| Making an illegal salary deduction, or failing to report the reason and calculation of the deduction | TRY 5,506 |
| Violation of the obligation to pay at least the minimum wage | TRY 1,515 (per employee affected, per month) |
| Violation of the obligation to pay remuneration for overtime work, or to allow the employee to use the free time accrued within six months, or a violation of the obligation to obtain the consent of the employee to perform overtime work |
TRY 2,667 (per employee affected) |
| In workplaces where the percentage payment method is applied, a violation of the obligation to distribute a document showing the sum of each accounting roll to the employee representative | TRY 5,506 |
| Violation of the provisions on an employer dividing an employee’s annual paid leave days | TRY 2,667 (per employee affected) |
| Violation of the obligation to pay or underpaying the equivalent for unused annual leave | TRY 2,667 (per employee affected) |
| Violation of the obligation to pay the equivalent for unused annual leave to an employee whose employment agreement has been terminated | TRY 2,667 (per employee affected) |
| Violation of the obligation to allow employees to use annual leave according to the essential procedures of the annual leave regulation | TRY 2,667 (per employee affected) |
| Violation of the obligation to comply with working hours and the provisions of the relevant regulation | TRY 14,740 |
| Violation of the obligation to comply with compensatory work procedures | TRY 2,667 (per employee affected) |
| Violation of the obligation to give a rest break to an employee | TRY 14,740 |
| Violation of the obligation not to work employees for more than 7.5 hours at night, and to change day and night shifts | TRY 14,740 |
| Violation of the prohibition on employing children of certain ages and under certain conditions | TRY 14,740 |
| Violation of the prohibition on working underground and underwater | TRY 14,740 |
| Violation of the obligation not to employ children and young people at night | TRY 14,740 |
| Violation of the obligation not to make work women work during pre/postnatal periods, or not to give unpaid leave | TRY 14,740 |
| Violation of the obligation to create a personal file for each employee | TRY 14,740 |
| Violation of regulations related to working hours | TRY 14,740 |
| Violation of the obligation to show the necessary documents and evidence upon demand, and to provide everything Labour Inspectors need to perform their duties (paragraph 92/1), and to carry out their orders and requests without delay | TRY 133,981 |
| Violation of the obligation not to influence employees on their statements, not to force them to hide or change the truth, to not behave inappropriately towards them when they testify to the relevant authorities | TRY 133,981 |
| Violation of the obligation not to prevent investigations and inspection duties of Labour Inspectors | TRY 133,981 |
Administrative Fines For Unlawful Acts, According to the International Labour Force Law No 6735
| WRONGFUL ACT | AMOUNT OF PENALTY |
| An employer employing a foreigner without a work permit | TRY 56,752 (on the employer for each foreign employee separately) |
| A foreigner working dependently without a work permit | TRY 22,688 |
| A foreigner working independently without a work permit | TRY 45,406 |
| A foreigner working independently and with an indefinite work permit without performing the notification obligation stipulated by law in due time, and an employer employing foreign employees under these conditions | TRY 3,768 (on the both foreign employee and employer separately) |
MONETARY THRESHOLDS FOR 2024 UNDER CIVIL PROCEDURE LAW, ADMINISTRATIVE PROCEDURE LAW, AND EXECUTION AND BANKRUPTCY LAW
| Monetary Threshold on Proving by Deed |
Monetary Threshold for an appeal request before the Court of Appeal | Monetary Threshold for an appeal request before the Court of Cassation |
| TRY 23,450 | TRY 28,250 | TRY 378,290 |
| Monetary Threshold for hearing requests before the Court of Cassation |
Monetary Threshold for appeal requests before the Court of Appeals (practised in Execution Courts) |
Monetary Threshold for appeals requests before the Court of Cassation (practised in Execution Courts) |
| TRY 567,520 | TRY 66,090 | TRY 378,290 |
| Monetary Threshold for appeals requests before the Council of State (practised in administrative jurisdiction) | Monetary Threshold for appeals requests before the Court of Appeal (practiced in administrative jurisdiction) | Monetary Threshold for hearing requests with a single judge |
| TRY 920,000 | TRY 270,000 | TRY 31,000 |
INCOME TAX CALCULATIONS
Income brackets used to calculate income tax rates have been reviewed for 2024 as follows:
| INCOME TAX RATES | |||
| Income Scales
(Employment Income) |
Tax Rates | Income Scales (Non-Employment Income)
|
Tax Rates |
| Up to TRY 110,000 | 15% | Up to TRY 110,000 | 15% |
| TRY 16,500 for income up to TRY 110,000 with the excess up to TRY 230,000 at: | 20% | TRY 16,500 for income up to TRY 110,000 with the excess up to TRY 230,000 at:
|
20% |
| TRY 40,500 for income up to TRY 230,000 with the excess up to TRY 870,000 at: | 27% | TRY 40,500 for income up to TRY 230,000 with the excess up to TRY 580,000 at: | 27% |
| TRY 213,300 for income up to TRY 870,000 with the excess up to TRY 3,000,000 at: | 35% | TRY 135,000 for income up to TRY 580,000 with the excess up to TRY 3,000,000 at: | 35% |
| TRY 958,800 for income up to TRY 3,000,000, with any excess at: | 40% | TRY 982,000 for income up to TRY 3,000,000, with any excess at: | 40% |
INTEREST RATE DEVELOPMENTS
The Central Bank of the Republic of Turkey has determined the discount interest rate to be applied in rediscount transactions as 43.25% per annum. The interest rate to be applied in advance transactions is 44.25% per annum, with an effective date of 23 December 2023. In cases where the default interest rate for late payments made to the creditor in the supply of goods and services is not stipulated in the contract or the relevant provisions of the contract are invalid, the interest rate to be applied is determined as 48% per annum, with an effective date of 1 January 2024.
