Turkey Sets New Minimum Wage for 2025: What It Means for Foreign Workers

Turkey’s Ministry of Labor and Social Security has announced a 30% increase in the country’s minimum wage for 2025. Labour and Social Security Minister Vedat Işıkhan revealed the new rate of TL 22,104 ($630.36) per month during a press conference following the fourth meeting of the Minimum Wage Determination Commission.

This change, effective January 2025, is expected to significantly impact foreign workers and work visa holders employed in the country.

Key Highlights of the New Minimum Wage

1. Increased Rate

The new minimum wage in Turkey for 2025 has been set at TL 22,104, equivalent to $630.36 per month. This marks an increase from the previous gross minimum wage of TL 20,000 ($577), which amounted to TL 17,002 net after deductions.

2. Negotiation Process

The wage increase was determined after four commission meetings involving representatives from the Confederation of Turkish Labor Unions (Türk-Iş) and the Turkish Confederation of Employer Associations (TISK).

Türk-Iş, representing workers, boycotted the final meeting in protest over unmet demands for a TL 29,583 ($841) minimum wage.

3. Inflation Context

The hike follows substantial increases in prior years as authorities battled high inflation. Inflation has shown signs of easing, dropping to 48.58% in October 2024, down from peak levels earlier in the year.

Implications for Foreign Workers

Increased Earning Potential: Foreign workers’ monthly earnings will rise in line with the new minimum wage. This boost could make Turkey a more attractive destination for individuals seeking employment.

Cost of Living vs. Wage Growth: While the wage increase offers relief, the cost of living in Turkey, influenced by inflation, remains a concern. Workers may still face challenges in balancing higher expenses with the new wages.

Opportunities for Skilled Foreign Workers: The revised wage structure may encourage employers to attract skilled foreign workers to meet labour shortages, particularly in sectors such as manufacturing and tourism.

Challenges for Employers: Companies employing foreign workers may face higher payroll costs, potentially impacting recruitment and retention strategies.

Policy Recommendations from the IMF

In October, the International Monetary Fund (IMF) advised Turkey to avoid inflation-driving wage increases. Instead, the IMF suggested implementing targeted social programs to support low-income households. For foreign workers, this could mean additional benefits or subsidies instead of relying solely on wage hikes.

3-Year Work Permit Exemptions

The Turkish government has recently implemented new work permit exemptions, providing enhanced flexibility for skilled foreign workers. This means that certain individuals can work in Turkey without the need for a traditional work permit.

These measures, which encompass a three-year exemption and an expedited Tech Visa, are intended to attract global talent and stimulate economic growth within Turkey.

Final Words

The 2025 minimum wage hike in Turkey represents a significant step toward improving workers’ incomes, including foreign nationals. However, the broader economic environment, coupled with inflationary pressures, means workers and employers alike will need to adapt to the evolving financial landscape.

Foreign workers considering Turkey as a destination should evaluate not only the increased earning potential but also the economic policies and cost-of-living trends shaping the country’s labour market.