Recent development
The maximum amount of monthly gross salary to be taken as a basis for statutory seniority compensation has been updated in accordance with the Circular No. 1 ("Circular") dated 5 January 2024, issued by the General Directorate of Public Financial Management and Transformation under the Ministry of Treasury and Finance ("Ministry"). The Circular entered into force as of 1 January 2024 and will be valid until 30 June 2024.
What does the Circular say?
The maximum amount of the monthly gross salary to be taken as a basis while calculating the statutory seniority compensation has been determined as TRY 35,058.58 for the first half of 2024 (between 1 January 2024 and 30 June 2024) with the Circular published by the Ministry.
The maximum amount of the monthly gross salary to be taken as a basis for the statutory seniority compensation is re-determined twice a year, for the period starting from January until the end of June of the relevant year and for the period starting from July until the end of December of the same year.
Conclusion
We recommend that employers base their statutory seniority compensation calculations on the current maximum amount of monthly gross salary determined by the Circular until the beginning of July this year and re-consider the calculations and payments, if any, that have already been made between 1 January 2024 and 5 January 2024.
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.
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