After the minimum wage was determined, employers began recalculating their costs. For 2024 the net minimum wage was set at 17,002.12 TL and the gross minimum wage at 20,002.50 TL. Below we explain in detail the hourly and daily minimum wage calculations and their employer costs:
- How is the minimum wage hourly rate calculated?
- How much is the minimum wage per hour?
- What is the employer cost for one hour of minimum wage?
- How much is the minimum wage per day?
- What is the employer cost for one day of minimum wage?
All details about the hourly and daily employer cost of the minimum wage are explained below.
HOW IS THE MINIMUM WAGE HOURLY RATE CALCULATED?
Hourly minimum wage calculation is based on the worker’s gross monthly salary. To calculate it, divide the worker’s monthly salary by 225. The resulting figure is the worker’s hourly wage.
The reason for dividing the monthly salary by 225 is that the Labor Law sets the maximum weekly working time at 45 hours and allows that to be divided across 6 working days, resulting in 7.5 hours per day. Multiplying 7.5 hours by 30 days yields 225 hours per month.
NOTE: The 225 divisor applies unless a different daily working time is specified at the workplace.
For example; if the workplace has an 8-hour working day, the hourly wage should be calculated by dividing the monthly salary by 240 rather than 225.
Also, the minimum subsistence allowance is not included in the hourly minimum wage calculation. The subsistence allowance is a tax deduction for the employee and dependents, so it is excluded when converting gross minimum wage to net.
HOW MUCH IS 1 HOUR OF MINIMUM WAGE?
Using the formula above, let’s determine how much the minimum wage is per hour. Effective from January 1, 2024, the gross minimum wage is 20,002.50 TL and the net minimum wage after legal deductions is 17,002.12 TL. Applying the calculation: 17,002.12 / 225 = 75.56 TL per hour.
WHAT IS THE EMPLOYER COST FOR 1 HOUR OF MINIMUM WAGE?
The hourly minimum wage based on gross figures is found by dividing the gross minimum wage by the monthly working hours. Monthly working hours are obtained by multiplying weekly working hours by the number of working weeks in a month. If no special working time is set at the workplace, weekly working hours are taken as 45 and monthly working days as 30, producing 225 monthly hours.
Accordingly, for the period January 1, 2024–December 31, 2024, the gross hourly minimum wage is:
- Gross minimum wage: 20,002.50 TL
- Monthly working hours: 225 hours
- Hourly minimum wage: 20,002.50 / 225 = 88.90 TL
After finding the hourly minimum wage, add employer-paid social security and unemployment insurance contributions to determine the employer’s cost.
For January 1, 2024–December 31, 2024, the employer cost per hourly minimum wage is as follows:
- Hourly minimum wage: 88.90 TL
- Social security contribution (15.5%): 13.78 TL
- Unemployment insurance (2%): 1.78 TL
- Total employer cost: 104.46 TL
HOW MUCH IS 1 DAY OF MINIMUM WAGE?
The daily minimum wage is calculated by dividing the net monthly minimum wage by the number of working days in the month. The monthly number of working days is found by multiplying weekly working days by the number of weeks in a month. If no special arrangement is set at the workplace, weekly working days are taken as 6 and the number of weeks per month as 5, resulting in 30 working days per month.
The daily minimum wage calculation is:
- Net minimum wage: 17,002.12 TL
- Monthly working days: 30 days
- Daily minimum wage: 17,002.12 / 30 = 566.74 TL
WHAT IS THE EMPLOYER COST FOR 1 DAY OF MINIMUM WAGE?
For 2024, the employer cost for one day of minimum wage is calculated as follows:
- Gross minimum wage: 20,002.50 TL
- Monthly working days: 30 days
- Daily minimum wage (gross): 20,002.50 / 30 = 666.75 TL
HOW IS OVERTIME CALCULATED ON THE MINIMUM WAGE?
Overtime calculation for minimum wage workers determines the pay for hours worked beyond the statutory weekly working time. The calculation uses the hourly minimum wage and the overtime premium. The hourly rate is obtained by dividing the gross minimum wage by the monthly working hours as described above. According to the Labor Law, overtime is paid at a rate of 50% extra over the regular hourly wage.
The 2024 minimum wage overtime rate is calculated as follows:
- Hourly minimum wage: 88.90 TL
- Overtime premium: 50%
- Overtime rate: 88.90 x 1.5 = 133.35 TL
Therefore, a minimum-wage worker will receive 133.35 TL for each hour of overtime worked beyond the weekly working time.
We have shared details about the hourly minimum wage, daily wage, employer costs and overtime calculations. If you have questions about the minimum wage, you can leave them in the comments and share your opinions and suggestions.