Cost of Doing Business in Turkey
1: Exchange rate for tables is calculated as the average of the exchange rates on banknotes (buying) in the last six months (2.1.2008 to 7.2.2008). USD 1 =YTL 1.24 (appx.).
One of the most important aspects of Turkey’s business environment is that 35.6% of the labor force earn the minimum wage-the highest rate in the EU.
| Minimum Monthly Wage (gross and net)1 | |
| USD | |
| Net minimum wage | 369.06 |
| [+] Gross Minimum Wage | 515.08 |
| - Social security premium payment (14%) | 72.11 |
| - Payment into unemployment insurance fund (1%) | 5.15 |
| - Income tax (15%) | 65.68 |
| - Stamp tax (6%) | 3.08 |
| Total deduction | 146.02 |
| Cost for Employer | |
| Gross minimum wage | 515.08 |
| - Employer’s share of social security premium (19.5%) | 100.44 |
| - Employer’s payment into unemployment insurance fund (2%) | 10.30 |
| [+] Total Cost for Employer | 625.82 |
| Source: Ministry of Labor and Social Security of the Republic of Turkey, and Central Bank of the Republic of Turkey. Valid until 2009. | |
| Cost of Electricity1 | ||
| Cost of Electricity USD/kwh | ||
| Active Energy | ||
| Day | Night | |
| Cent/kWh | Cent/kWh | |
| Double Term Tariff | ||
| Industry mid voltage | 10.97 | 5.48 |
| Direct connection to the local power grid with private line (industry) | 10.46 | 4.85 |
| Single Term Tariff | ||
| Mid Voltage | 12.62 | 7.12 |
| Direct connection to the local power grid with private line (industry) | 12.49 | 7.02 |
| Source:TEDAS, as of 7.1.2008. | ||
| Cost of Water for Industrial Use1 | ||||
| Type of Customer | USD/m3 | |||
| Water | Industrial Waste Water |
Total | VAT (%) | |
| ISKI (Istanbul Water and Sewage Administration -reference price) | ||||
| Industry | 4.59 | 0.26 | 5.22 | 8 |
| Organized industrial zones (reference prices) | ||||
| Gebze Org. Ind. Zone* | 2.58* | n/a | 2.78* | 8 |
| Manisa Org. Ind. Zone** | 0.40 | n/a | 0.43 | 8 |
| *Supplied by the city water grid **Supplied by the local stream Source: ISKI and Gebze OIZ. As of 4.15.2008 | ||||
| Cost of natural gas for industrial purposes1 | |
| Price per kwh (USD) | |
| Disengaged Consumer | Engaged Consumer |
| 0.04128 USD/kwh | 0.04724 USD/kwh |
| Contracted Customer: The group of consumers that has to purchase gas from the local supplier company. Non-contracted Customer: The group of consumers that consumes more than 1 million m3 annually and that is eligible to purchase gas from other suppliers. | |
| Source: IGDAS, as of 2008. | |
| Domestic and business phone calls (VAT included SCT excluded)1 | |
| Price -USD/min* | |
| [+]Digital telephone exchange | |
| SirketHATT (Business line) | |
| - Fixed fee | 30.00 |
| - Monthly free phone calls | 0 |
| [+] Phone calls based on call direction | |
| - City calls | 0.045 |
| - City calls (discount price) | 0.022 |
| - Domestic calls | 0.063 |
| [+] International | |
| - First stage PSTN | 0.065 |
| - First stage GSM | 0.410 |
| - Second stage PSTN | 0.227 |
| - Second stage GSM | 0.330 |
| - Third stage PSTN | 0.613 |
| - Third stage GSM | 0.613 |
| - Fourth stage PSTN | 1.120 |
| - Fourth stage GSM | 1.120 |
| - GSM Calls (Turkcell: 053. - Telsim: 054. - Avea: 050. & 055.) |
0.206 |
| [+] Internet | |
