Cost of Doing Business in Turkey

Minimum Monthly Wage (gross and net)

Minimum Monthly Wage (gross and net)
	USD
Net Minimum Wage	358.32
Gross Minimum Wage	453.62
Social security premium payment (14%)	63.51
Payment for unemployment insurance fund (1%)	4.54
Income tax (15%)*	23.82
Minimum living allowance**	34.02
Stamp tax (0.759%)	3.44
Total Deduction	95.30
Employer Cost
Gross minimum wage	453.62
Employer’s share of social security premium (15.5%)***	70.31
Employer’s payment for unemployment insurance fund (2%)	9.07
Total Employer Cost	533.00
* Calculation of income tax is [(453.62 – 63.51 – 4.54) x 0.15] – 34.02 = 23.82 For single individuals without children and may vary according to marital status and number of children. * For premiums that are paid in due time, as an incentive, a five-point reduction is applied (down from 20.5% to 15.5%). Source: Ministry of Family, Labor and Social Services Valid for January 1, 2019 – December 31, 2019 USD 1 = TRY 5.64, as of July 1, 2019

Cost of Electricity

Cost of Electricity
Consumers Purchasing Electricity from Commissioned Supply Companies
Distribution System Users	Capacity		Active Energy + Distribution				Reactive Energy
	Capacity Charge	Over-Capacity Charge	Standard	Daytime	Peak	Nighttime
	TRYcent/kWh	TRYcent /kWh	TRYcent /kWh	TRYcent /kWh	TRYcent /kWh	TRYcent/kWh	TRYcent/kWh
Medium Voltage
Double Term
Industry	306.2555	612.5110	50.7364	51.3217	79.3055	28.7362	26.4716
Single Term
Industry	N/A	N/A	51.5015	52.0870	80.0708	29.5013	26.4716
Low Voltage
Single Term
Industry	N/A	N/A	57.1785	57.7638	85.7476	35.1782	26.4716
System Usage Tariffs for Consumers Purchasing Electricity from Private Suppliers*
	Capacity				Distribution Tariff	Reactive Energy
	Capacity Charge		Over-Capacity Charge
	TRYcent/kWh		TRYcent/kWh		TRYcent/kWh	TRYcent/kWh
Medium Voltage
Double Term
Industry	306.2555		612.5110		8.1106	26.4716
Single Term
Industry	N/A		N/A		8.9588	26.4716
Low Voltage
Single Term
Industry	N/A		N/A		13.8612	26.4716
Multiple tariff application for November-March period: 07.00-18.00 daytime; 18.00-22.00 peak; 22.00-07.00 nighttime. Multiple Tariff application for April-October period: 06.00-17.00 daytime, 17.00-22.00 peak; 22.00-06.00 nighttime. Capacity Charge: Monthly fixed-fee calculated per kW based on the “contract power” specified in connection contract and charged to double-term consumers connected to distribution system. Over-Capacity Charge: monthly fee calculated per kW for amount of power exceeding the “contracted power” specified in the connection contract and charged to double-term consumers connected to distribution system. Double-Term tariff: Tariff class charged for “distribution fee over the amount of active energy flow (kWh) received from the distribution system or given to the distribution system”, plus capacity-charge calculated per kW specified in the connection contract, plus over-capacity charge for the power (in kW) exceeding the “contract power.” Single-term Tariff: The tariff class charged for distribution fee only through the amount of active energy flow (kWh) received from the distribution system or given to the distribution system. The active energy price is not reflected in the table, as the price is determined bilaterally between the consumer and the supplier. Electricity Bill Calculation:* [(Consumption (kWh) x Active Energy Price* (TRYcent/kWh) x 1,02) + (Consumption (kWh) x Distribution Tariff (TRYcent/kWh))] x 1.18* Active Energy Price: the consumers can either purchase electricity from the commissioned supply companies at the prices indicated in the table or at the prices determined bilaterally with the private electricity suppliers. Funds (electricity fund 1%, electricity consumption tax 1%) VAT 0.18% Source:** Energy Market Regulatory Authority (EMRA) USD 1 = TRY 5.64 as of July 1, 2019

Cost of Water for Industrial Use

Cost of Water for Industrial Use
Reference Price USD/m3
Type of Customer	Water	Waste Water		Water VAT (%)
Industry	2.17	Included		8
Reference Price USD/m3
Organized Industrial Zones (OIZs)	Water	Water VAT (%)	Waste Water		Waste Water VAT (%)
Eskişehir OIZ	0.12	8	0.12		8
Antalya OIZ	0.9	8	-		-
Source: Istanbul Water and Sewerage Administration (ISKI) Eskişehir Water and Sewerage Administration & Antalya Water and Sewerage Administration USD 1 = TRY 5.64 as of July 1, 2019

Cost of Natural Gas

Cost of Natural Gas
Gas Sales Tariff for Customers that have a Signed a Gas Sales Agreement with BOTAS
	TRY/kWh	TRY/Sm³
Less than 300,000 Sm³	0.08364793	0.890014
OIZ	0.12638816	1.344770
More than 300,001 Sm³	0.12702321	1.351527
Gas Bill Calculation: Consumption (Sm³) x (Tariff per Sm³ + 0.023 TRY+Transport Tariff per Sm³) x 1.18** 0.023 TRY/Sm³: Special Consumption Tax Transport Tariff/System Usage Tariff (see the websites of the relevant gas distribution companies) ** 0.18% VATSource: Petroleum Pipeline Corporation (BOTAS) Excluding SCT and VAT USD 1 = TRY 5.64 as of July 1, 2019

Cost of Broadband Services

Cost of Broadband Services
Fibernet and Hypernet	(USD/month)
Download Speed (Mbps) - unlimited tariffs	Price
Up to 24	51
Up to 35	60
Up to 50	75
Up to 100	104
Up to 1000	165
Metro Ethernet and G.SHDSL	Requirement specific
Source: TTNET, Superonline All taxes included. USD 1 = TRY 5.64 as of July 1, 2019

Cost of Doing Business in Turkey

Minimum Monthly Wage (gross and net)

Cost of Electricity​

Cost of Water for Industrial Use

Cost of Natural Gas

Cost of Broadband Services

Cost of Electricity