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Türkiye employers increasingly hit with wage support clawbacks: Report

A person counts Turkish lira banknotes. (Adobe Stock Photo)
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A person counts Turkish lira banknotes. (Adobe Stock Photo)
July 19, 2026 04:06 AM GMT+03:00

An increasing number of employers in Türkiye are being required to repay minimum wage support they received in previous years as authorities step up reviews of payroll records, according to tax advisory and consulting firm Ernst & Young (EY).

The firm said the trend reflects a growing number of cases in which the Social Security Institution (SSI) seeks to recover support payments after identifying noncompliance during audits, labor inspections, or employment-related court proceedings.

Noncompliance can trigger full repayment

For 2026, employers that meet the eligibility requirements can receive minimum wage support of ₺42.33 ($0.90) per employee per day, potentially saving a business with 500 employees about ₺7.6 million ($161,213) annually through the program.

While support can be revoked for various forms of noncompliance, EY said recent repayment cases are increasingly linked to discrepancies between wages reported to the SSI and additional employee payments, such as compensation or other employment-related receivables, uncovered during inspections or legal proceedings.

If those discrepancies exceed one-tenth of the monthly minimum wage, the SSI may reclaim the full amount of minimum wage support received during the relevant period. Employers may also be required to pay late-payment interest and penalties and lose eligibility for the support for the remainder of the year.

Column chart showing the cumulative number of private-sector workers earning at or below different wage thresholds in Türkiye in 2024. (Chart via Türkiye Today)
Column chart showing the cumulative number of private-sector workers earning at or below different wage thresholds in Türkiye in 2024. (Chart via Türkiye Today)

Minimum wage worker costs employers ₺39,223 monthly

EY advised employers to identify potential issues early, particularly if they are involved in SSI audits, labor inspections, or employment-related litigation.

According to the report, conducting an expert assessment before those processes are completed may help businesses identify potential financial exposure and address compliance issues before repayment obligations arise.

Minimum wage serves as a benchmark wage in Türkiye, with 46.7% of wage earners, around 8.4 million people, receiving the minimum wage or less in 2024, according to calculations by the Research Center of the Confederation of Progressive Trade Unions of Türkiye (DISK-AR).

In the manufacturing sector, employing a minimum-wage worker costs employers about ₺39,223.13 ($832.01) per month after applicable social security premium incentives.

The total consists of the gross minimum wage of ₺33,030, an employer Social Security Institution (SSI) contribution of ₺5,532.53, and an employer unemployment insurance contribution of ₺660.60.

July 19, 2026 04:06 AM GMT+03:00
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