Minimum wage increase was formalized starting January 1. With the government’s announced 30% raise, the minimum wage has increased. How much is the current minimum wage, and what is the employer cost of the minimum wage?
You will find details about minimum wage calculation, social security contributions and other deductions in this article. Here are the details related to the minimum wage calculation table.
What Is the 2025 Minimum Wage?
The new minimum wage effective from January 1, 2025 has been announced. The monthly gross amount was set at 26,005.50 TL and the net amount at 22,104.67 TL. This represents a 30% increase compared to the previous year.
The total cost to the employer for the new minimum wage is 30,621.48 TL. Employer cost is calculated by adding employer social security contributions and employer unemployment insurance contributions on top of the gross minimum wage.
How Is Net Minimum Wage Calculated?
To arrive at the net minimum wage, the following deductions are applied to the gross salary:
- Social Security Contribution (employee share, 14%): 3,640.77 TL
- Unemployment Insurance Premium (employee share, 1%): 260.06 TL
A total deduction of 3,900.83 TL is made. After these deductions, the employee receives a net salary of 22,104.67 TL.
Employer Cost of Minimum Wage 2025
For an employer, the total cost of employing a worker is not limited to the gross salary. Employer cost items are as follows:
- Social Security Contribution (employer share, 15.75%): 4,095.87 TL
- Employer Unemployment Insurance Contribution (2%): 520.11 TL
With these additional costs, the employer’s total expense amounts to 30,621.48 TL.
How Is the Minimum Wage Determined?
Each year the minimum wage is set by the Minimum Wage Determination Commission. This commission includes the following members:
- Worker representatives
- Employer representatives
- Government officials
NOTE: The commission makes its decision based on economic indicators and inflation rates. During meetings, the living standards of workers are also taken into account.
How Much Is the Pension Based on Minimum Wage?
Pension amounts for individuals who worked on the minimum wage vary depending on the contributions paid and the type of pension. According to 2025 figures, a SSK pensioner who retires on the minimum wage will receive at least 14,469 TL. You can send your questions about minimum wage calculation in the comments section.