Advertisment

New Wage Rules and Minimum Capital Requirement Changes Effective from December 2023

author-image
Safak Costu
New Update
New Wage Rules and Minimum Capital Requirement Changes Effective from December 2023

In an impactful change, the new wage rules, including the minimum wage and the guaranteed minimum wage, were published on 20 November, with the scales becoming effective from 1 December 2023. This means that wages due for December will be impacted by these changes. As per the new rules, full-time employees will be entitled to a minimum mandatory basic wage of HUF 266,800 per month, HUF 61,340 per week, HUF 12,270 per day, and HUF 1,534 per hour, starting 1 December 2023.

Advertisment

New Wage Scales for Qualified Jobs

For jobs that require secondary education or professional qualifications, the guaranteed minimum wage, also known as the graduate minimum wage, will see an increase as well. Starting from 1 December 2023, the new wage standards will be HUF 326,000 per month, HUF 74,950 per week, HUF 14,990 per day, and HUF 1,874 per hour. It is to be noted that for full-time jobs with more or less than 8 working hours per day and part-time jobs, the hourly wage rate must be adjusted proportionally.

Benefit Regulations from 2024

Advertisment

From 1 January 2024, the Regulation will apply in respect of benefits determined based on the amount of the minimum wage or the guaranteed minimum wage for the month of January 2024. This comes as part of the government's attempt to better regulate wage and labor laws in the country.

Changes in Minimum Capital Amounts

Another significant regulation has come in the form of Presidential Decree numbered 7887, published in the Official Gazette dated 25 November 2023. As per this decree, the minimum capital amount for joint stock and limited liability companies has been decided to be increased by 5 times. This new regulation will come into effect from 1 January 2024. The new minimum capital amounts will be as follows: Limited Liability Companies will require TRY 50,000, up from TRY 10,000; Joint Stock Companies will require TRY 250,000, up from TRY 50,000; Non-public Joint Stock Companies that Adopted the Registered Capital System will require TRY 500,000, up from TRY 100,000.

According to the Ministry of Trade, the updated minimum capital amounts will only apply to new companies established from 1 January 2024 onwards. Existing companies established with the current minimum capital will not be required to increase their capital. However, it's advisable for already established joint stock and limited liability companies to increase their capital to at least the new minimum amounts, to strengthen their equity structures. Companies subject to different legislation other than the Turkish Commercial Code should review their capital requirements within the framework of the new regulation.

Advertisment
Advertisment