Turkey announces 30% increase in minimum wage, set to impact foreign skilled workers

Turkey’s Ministry of Labour and Social Security has announced a 30 per cent increase in the national minimum wage for 2025. This includes work permit exemptions for skilled foreign workers and expedited Tech visas.

This adjustment, which will take effect in January 2025, is anticipated to have a notable impact on foreign workers and work visa holders employed in the country.

Vedat Işıkhan, the Labour and Social Security Minister unveiled the new monthly rate of TL 22,104 ($630.36) during a press conference, following the fourth meeting of the Minimum Wage Determination Commission.

The wage hike comes after several substantial increases in previous years as authorities tackled high inflation. Notably, inflation has shown signs of easing, falling to 48.58 per cent in October 2024 from earlier peaks.

The minimum wage is a significant increase from the previous gross minimum wage of TL 20,000 ($577), which netted TL 17,002 after deductions.

This wage adjustment was decided after four meetings of the Minimum Wage Determination Commission, which included representatives from the Confederation of Turkish Labour Unions (Türk-Iş) and the Turkish Confederation of Employer Associations (TISK).

Türk-Iş boycotted the final meeting, protesting unmet demands for a minimum wage of TL 29,583 ($841).

Implications for foreign workers

The new minimum wage will raise monthly earnings for foreign workers, potentially making Turkey a more attractive employment destination. However, while this increase provides some financial relief, the cost of living, influenced by ongoing inflation, remains a concern, posing challenges for workers balancing higher expenses with the new wages.

The revised wage structure could incentivise employers to attract skilled foreign workers to address labour shortages, particularly in the manufacturing and tourism sectors. Conversely, companies employing foreign workers may face higher payroll costs, impacting recruitment and retention strategies.

In October, the International Monetary Fund (IMF) advised Turkey to avoid inflation-driving wage increases by recommending the implementation of targeted social programs to support low-income households, potentially offering additional benefits or subsidies to foreign workers instead of relying solely on wage hikes.