At the beginning of each year, the minimum wage, severance payments and administrative fines prescribed by the Labour Act are revised. This article provides an overview of the 2025 changes, which came into effect on 1 January 2025.
Minimum wage
In 2024 the monthly minimum wage rate was 20,002.50 Turkish liras (gross). As of 1 January 2025, this has increased to 26,005.50 Turkish liras (gross). The new rate applies from 1 January 2025 to 31 December 2025.
The minimum wage applies to all employees, regardless of age, industry and experience. The only exception concerns employees who work in underground coal and lignite mines, where the minimum wage must equal at least twice the regular rate.
Severance payments
Subject to several conditions, employees are entitled to a severance payment of one month's salary for each year of service if they are dismissed. The government has determined a ceiling for such payments on a six-month basis. From 1 January 2025 to 30 June 2025, the maximum severance payment has increased from 41,828.42 Turkish lira (gross) to 46,655.43 Turkish lira (gross). The next adjustment to the maximum severance payment will be made on 1 July 2025.
Administrative fines
Several administrative fines are regulated under the Labour Act, including fines for a failure to:
- ensure the equal treatment of employees;
- pay the minimum wage;
- hire disabled persons; and
- follow collective redundancy procedures.
Administrative fines are also revised once a year. Compared with 2024, the rate of administrative fines in 2025 has increased by 43.93%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
