Minimum Wage Cost to Employers in 2025: Updated Calculation

Every year, millions of employees and employers eagerly await minimum wage negotiations. The minimum wage not only determines employees’ take-home pay but also directly affects employers’ cost planning, the state’s tax and premium revenues, and even the overall balance of the economy.

The figures set for 2025 bring significant changes for both employees and employers, making questions such as “What is the difference between gross and net minimum wage? What costs does it include for employers? How do incentives affect total costs?” more relevant than ever.

In this article, you’ll find clear answers to all these questions — supported by concrete examples and up-to-date calculations.

What is the minimum wage, and how is it determined?

The minimum wage is the lowest amount an employer can legally pay an employee. In Türkiye, it is determined by the Minimum Wage Determination Commission, and its purpose is to provide a basic income level that allows employees to meet essential needs such as housing, food, transportation, and healthcare.

The main criteria considered when determining the minimum wage are:

• Economic indicators (inflation rate, growth, cost increases)

• Living conditions and cost-of-living indices

• Employers’ cost burden and labor market balance

• The distribution of current wage levels across sectors

For 2025, the gross monthly minimum wage in Türkiye is ₺26,005.50, and the net monthly minimum wage is ₺22,104.67.

The difference between gross and net minimum wage

The gross wage refers to the total amount payable to an employee before deductions. The net salary is the amount the employee receives after deducting social security contributions, unemployment insurance premiums, taxes, and other statutory deductions.

A sample calculation for 2025 is as follows:

• Gross minimum wage: ₺26,005.50

• Employee’s SGK contribution (14%): ₺3,640.77

• Unemployment insurance premium (1%): ₺260.06

• Total deductions: ₺3,900.83

• Net wage: ₺22,104.67

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Minimum Wage Determination Commission

The body legally responsible for determining the minimum wage is the Minimum Wage Determination Commission. This commission consists of 15 members — five representing employees, five representing employers, and five representing the government.

Selected from the highest-level organizations of employees and employers, the commission may gather opinions, conduct surveys, and consult experts if necessary. Meetings are held with the participation of at least 10 members, and decisions are made by majority vote.

In the event of a tie, the side on which the Chairperson votes is deemed the majority. Once the decision and its justification are prepared, it is published in the Official Journal.

What does the minimum wage cost include for employers?

The cost of the minimum wage to employers is not limited to the gross salary paid to the employee. Employers are also responsible for covering social security contributions, unemployment insurance premiums, and other statutory payments. Therefore, the total cost for employers exceeds the gross wage due to these additional obligations.

As of 2025, the gross minimum wage is ₺26,005.50. Additionally, the employer pays a Social Security Institution (SGK) contribution, calculated as a percentage of the gross wage. Depending on eligibility for incentives, this rate may vary, but it generally stands at 15.75%, amounting to approximately ₺4,095.87.

Employers must also pay an unemployment insurance premium equal to 2% of the gross wage — for 2025, this equals ₺520.11. The stamp tax appears on the employee’s payroll and is withheld and remitted by the employer to the tax office. Although it does not directly increase the employer’s cost, it remains an administrative responsibility within payroll management.

When all these items are combined, the total cost for an employer hiring a minimum-wage employee is much higher than the gross salary alone. As of 2025, the total cost — including the employer’s SGK contribution and unemployment insurance premium — is approximately ₺30,621.48 for employers benefiting from incentives.

Additionally, some businesses may increase their overall expenses with non-mandatory benefits such as meal allowances, transportation support, bonuses, or other fringe benefits.

Minimum wage cost calculation for 2025

In 2025, official data shows that the key components in calculating the minimum wage cost are the gross salary, the employer’s SGK contribution, the employer’s unemployment insurance premium, and applicable incentives.

According to official sources, the figures for 2025 are:

• Gross minimum wage: ₺26,005.50

• Employer’s SGK contribution (with incentive): ₺4,095.87

• Employer’s unemployment insurance premium (2%): ₺520.11

• Total employer cost (with incentive): ₺30,621.48

• Without incentive (20.75% SGK employer rate): approximately ₺31,921.75

Example calculation table

 

Sources: 1, 2.  

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