What Is a Wage, and How Should Wages Be Paid?

The wage, the most fundamental right of employees, is the amount paid by the employer to the worker in return for their labor. This amount often appears as a broader concept known as the "gross-inclusive wage" (giydirilmiş ücret) when combined with fringe benefits. The definition of the wage, its method of payment, its content, and the principles governing its payment are regulated by Labor Law No. 4857 and related legislation.

1. Definition and Legal Basis of the Wage

Pursuant to Article 32 of Labor Law No. 4857, the wage is "the amount of money paid to a person by the employer or by third parties in return for work performed."

2. Base Wage

The base wage is the net wage paid to the worker in return for their principal job duties, excluding all supplementary payments. This amount is usually determined by excluding items such as bonuses, premiums, and social benefits.

3. Fringe Benefits

Fringe benefits cover monetary or monetarily measurable additional payments such as meal allowances, transportation allowances, child allowances, and heating allowances. These entitlements are determined through individual employment contracts or collective bargaining agreements.

4. Bonuses

A bonus is a premium-like payment made to the worker at certain times of the year, in addition to the wage. Bonuses are not mandatory; however, if they have been established by contract or through established practice, their payment becomes obligatory. They are assessed within the framework of Article 32 et seq. of Law No. 4857 and the general principles of the Code of Obligations.

5. Premiums

A premium is a wage component paid to the worker, mostly determined on the basis of performance and generally tied to criteria such as achieving targets, sales volume, or quality. Premiums are also included in the wage for social security and tax purposes.

6. Gross-Inclusive Wage

The gross-inclusive wage is the sum of the base wage and recurring supplementary payments. This amount is taken into account in particular when calculating notice pay and severance pay.

7. Overtime Pay

Overtime pay is the compensation paid for working hours exceeding 45 hours per week. Pursuant to Article 41 of Labor Law No. 4857, this payment is calculated at 50% above the hourly rate of the normal wage.

8. Method of Wage Payment and Legal Requirements

According to Articles 32 and 37 of the Labor Law, wages must be paid within one month at the latest and in Turkish Lira (TL). The payslip must be provided to the worker in writing.

The method of payment is governed by the Banking Law enacted in 2008 and the Regulation on the Payment of Wages, Premiums, Bonuses, and All Similar Payments Through Banks.

8.1. Obligation to Pay Through Banks

The phrase "at least five journalists" in the first paragraph of Article 6 of the Regulation on the Payment of Wages, Premiums, Bonuses, and All Similar Entitlements Through Banks, published in the Official Gazette No. 27058 dated 18/11/2008, was amended to "at least three journalists" by the Official Gazette No. 32920 dated 04/06/2025.

Under the previous regulation, the employer's obligation to pay wages through banks applied to workplaces employing at least 5 workers. As a result, it has become mandatory for employers with 3 or more workers to pay wages through banks.

9. Legislative References

Labor Law No. 4857: Articles 32, 37, 41, 42, 57

Turkish Code of Obligations No. 6098: Article 393 et seq.

Regulation on the Payment of Wages Through Banks

Social Security Legislation (Premiums, SGK (Social Security Institution) contribution base)

In this context, when establishing their wage policy, employers must build a system that is compliant not only in terms of the salary amount but also with respect to payroll, tax, social insurance, and labor law dimensions.