Sekib Avdagic, Chairman of the Board of Directors of the Istanbul Chamber of Commerce (ITO), suggested that the minimum wage be determined as 3 or 4 separate scales, similar to the incentives based on regional differences.
“We think that the minimum wage in Istanbul should not be the same as the minimum wage in the provinces within the scope of the 6th region regarding incentives. Therefore, it would be beneficial to set the minimum wage a little higher in developed provinces and relatively lower in developing provinces.” Avdagic said.
Reminding that the minimum wage to be applied in 2024 will be determined until the end of this month, Avdagic said that the minimum wage is considered by the business world as a work that affects the entire wage scale, beyond the minimum wage.
Avdagic emphasized that just as there are regions where different incentives are applied from 1 to 6 for investments, the minimum wage can be determined as 3 or 4 scales, even if it is not 6 scales, and said, “The minimum wage can be evaluated and determined regionally.”
INCOME TAX BRACKETS SHOULD BE UPDATED
ITO Chairman Avdagic stated that along with the minimum wage, another issue that the business world emphasizes is the need to update the income tax brackets.
Sharing the information that the first tax bracket of the minimum wage was 13 times the minimum wage about 15 years ago, Avdagic said, “Although the minimum wage has been increasing faster every year as a social wage, income tax brackets have increased at a rate much lower than this. While the first tax bracket was 13 times the minimum wage in 2008, it will be reduced to less than 6 times in 2024 with the expectation of the minimum wage increase pronounced at the point we have reached today and the tax update in the revaluation rate.”
Avdagic stated that in addition to the updating of the income tax brackets of employees, the revision of the SSI upper limit could be an important development for working life.