Per Article 27 of the International Private and Civil Procedure Law numbered 5728 and the provisions of the Turkish Labor Code numbered 4857, Turkish Labor Law is generally applicable to employment contracts when the work is performed within the borders of Turkey. Even if there is a choice of law in the contract, the employee is deemed to have acquired the minimum protections under Turkish law due to the work being performed in Turkey. In this context, it is deemed beneficial to elaborate on the points outlined below briefly.
Working hours
Contents
Concerning the Labor Law, as a general rule, the maximum working hours are 45 hours per week which should be split equally among the working days unless otherwise agreed by the parties. However in any case daily working hours cannot exceed 11 hours and total number of overtime hours worked per year may not exceed 270 hours.
Hours exceeding the limit of 45 hours per week are “overtime hours” and the wage/salary for each hour of overtime work shall be paid by raising the hourly rate of the regular working salary by fifty percent. Instead of the overtime payment, employees may be granted 1.5 hours of free time for every overtime hour worked.
Overtime hours worked during weekends and public holidays are to be paid as wage for one-day holiday and overtime wage. These rates may be increased on the basis of collective or personal employment contracts between employees and employers.
Upon the completion of one year of service, employees are allowed to take paid annual leaves. Periods of annual leaves are set accordingly with the service length of the employee. For employees with a service of 1-5 years, the paid annual leave period is 14 days. In addition to that, as a general rule, Sunday is the rest day for employees. Therefore employers who wish to continue their activities are obliged to obtain a permit if they
Furthermore, there are seven paid public holidays per year (January 1st, April 23rd, May 1st, May 19th, July 15th, August 30th, and October 29th), plus two paid periods of religious holiday.
Wages
Primarily, it should be noted that under Turkish Law, labor contracts can be freely negotiated by the parties provided that the salary doesn’t fall below the National Minimum Wage. This wage is decided and announced by the National Minimum Wage Commission for every year. The National Wage Commission takes into account the social and economic status of the country, wage subsistence indices, subsistence indices, the general condition of the actual wages paid and the living conditions when determining the wage.
In Turkey, salaries are traditionally adjusted every year by the Employer, as Government or private business enterprise. Therefore, the rises in salaries are regarded as inevitable, considering the high inflation rates occurring in Turkey. Even if no written agreement exists between the Employer and Employee, yearly increase in wages has become an established practice in Turkish labor relations widely acknowledged by the courts and governmental and private sector employers. Yearly increase of the minimum wage will be determined by the Minimum Determination Commission, consisting of government representatives and non-governmental organizations.
As of December 30, 2023, pursuant to Decision No. 32415, the daily minimum gross wage has been set at 666.75 Turkish Lira. The monthly minimum gross wage is derived by multiplying the daily minimum gross wage of 666.75 TL by 30. Consequently, the resulting monthly minimum gross wage stands at 20,002.5 TL.
It is imperative to highlight that the net monthly remuneration owed to the employee is 17,002 TL. This is due to the remaining 3,002.5 TL being remitted by the employer to the Social Security Institution (SGK), covering insurance premiums, duties, and other levies.
Net Minimum Wage Received by Employee (TL/Month)
| Minimum Gross Wage | 20.002,50 |
| Social Security Institution Contribution (%14)
(Contribution Share of Employee ) |
2.800,35 |
| Unemployment Insurance Payment (%1)
(Contribution Share of Employee) |
200.03 |
| Total Contribution of Employee | 3.000,38 |
| Net Minimum Monthly Wage | 17,002.12 |
Cost on Employer (TL/Month)
| Minimum Gross Wage | 20.002,50 |
| Social Security Institution Contribution (%15,5)
(Contribution of Employer) |
3.100,39 |
| Unemployment Insurance Payment (%2)
(Contribution of Employer) |
400,05 |
| Total Cost to the Employer | 23.502,94 |
