COST OF DOING BUSINESS

Minimum Monthly Wage

Minimum Monthly Wage (gross and net)
 
TRY
Net Minimum Wage
8,506.80​
Gross Minimum Wage
10,008.00
  • Social security premium payment (14%)
1,401.12​
  • Payment for unemployment insurance fund (1%)​
100.08​​
Total Deduction
1,501.20​​
Employer Cost 

  • Gross minimum wage​
10,008.00​​
  • Employer’s share of social security premium (15.5%)*
1,551.24​​
  • Employer's payment for unemployment insurance fund (2%)
200.16​​
Total Employer Cost 
11,759.40​
* 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 Labor and Social Security


Valid for January 1, 2023 – December 31, 2023



Cost of Electricity​

​​​Cost of Electricity

Consumers Purchasing Electricity from Commissioned Supply Companies

Standard

Day-time

Peak-time

Night-time

TRYcent/ kWh

TRYcent/ kWh

TRYcent/ kWh

TRYcent/ kWh

258.4316​

261.7649​

421.0652​

133.1935​

Consumers Using Distribution System

Distribution System Users

Capacity

Active Energy + Distribution

Reactive Energy

Capacity Charge

Over-Capacity Charge

Standard

Day-time

Peak-time

Night-time

TRYcent/kWh

TRYcent/ kWh

TRYcent /kWh

TRYcent /kWh​

TRYcent/kWh

TRYcent/kWh

TRYcent/kWh

Medium Voltage

Double Term

Industry

1,142.7593​

2,285.5186​

280.0843​

283.3038​

437.2179​​

159.0797​

112.2257​

Single Term

Industry

N/A

N/A

292.5538​

295.8872​

455.1875​

167.3158​

112.2257​

Low Voltage

Single Term

Industry

N/A

N/A

308.5326​

311.6997​

544.7602​​

222.8125​

112.2257​​

System Usage Tariffs for Consumers Purchasing Electricity from Private Suppliers*

 

Capacity

Distribution Cost

Reactive Energy

Capacity Charge

Over-Capacity Charge

TRYcent/kWh

TRYcent/kWh

TRYcent/kWh

TRYcent/kWh

Medium Voltage

Double Term

Industry

1,142.7593

2,285.5186

34.3846

112.2257

Single Term

Industry

N/A

N/A

37.9808

112.2257

Low Voltage

Single Term

Industry

N/A

N/A

58.7641

112.2257

Application of a multi-tier tariff structure for the meters which are not updated for summer-time is as follows:

​November-March: 07.00-18.00 daytime; 18.00-23.00 peak; 23.00-07.00 nighttime. 

April-October period: 06.00-17.00 daytime, 17.00-22.00 peak; 22.00-06.00 nighttime.

Application of a multi-tier tariff structure for the meters which are updated for summer-time is as follows:

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 the connection contract and charged to double-term consumers connected to the distribution system.

Over-Capacity Charge: monthly fee calculated per kW for the amount of power exceeding the “contracted power” specified in the connection contract and charged to double-term consumers connected to the 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 T​ariff: The tariff class charged for distribution fee only through the amount of active energy flow (kWh) received from the distribution system or fed into it.

*The active energy price is not reflected in the table, as the price is co-determined by the consumer and the supplier.​

Electricity Bill Calculation:

[(Consumption (kWh) x Active Energy Price* (TRYcent/kWh)) + (Consumption (kWh) x Distribution Tariff (TRYcent/kWh))] x 1.08***

Active Energy Price*: 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.

**VAT 8%​

Source: Energy Market Regulatory Authority (EMRA)






















Cost of Water for Industrial Use

Cost of Water for Industrial Use

​​Reference Price USD/m3

Organized Industrial Zones (OIZs)

Water

Water VAT (%)

Wastewater

Wastewater VAT (%)

Eskişehir OIZ

0.14

1

0.09

​8

Balıkesir OIZ

0.32

1

0.38

8

Ankara Başkent OIZ

0.53

1

0.27

8

İzmir Aliağa OIZ

0.55

1

0.56

8

Reference Price USD/m3

Free Zones (FZs)

Water

Water VAT (%)

Wastewater

Wastewater Coordination Fee (%)

Aegean Free Zone (ESBAŞ)

2.40

0

1.22

10

İstanbul Industrial and Trade Free Zone (DESBAŞ)

2.40

0

1.22

10

Kayseri Free Zone (KAYSER)

2.40

0

1.22

10

İzmir Free Zone (İZBAŞ)

1.76

0

1.79

0

Reference Price USD/m3

Municipalities

Water + Wastewater

Water + Wastewater VAT (%)

İstanbul

2.09

8

Ankara

2.05

8

Bursa

2.01

8

USD 1 = TRY 18.80 as of February 21, 2023

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Cost of Natural Gas

Cost of Natural Gas

Gas Sales Tariff for Customers Purchasing Gas from BOTAŞ


TRY/kWh

TRY/Sm³

Grade-1 (Less than 300,000 ​Sm³/a) in or outside of OIZ​

0,66964239​

7,124995​

Grade-2 (More than 300,001 Sm³/a) in or outside of OIZ

0,89082932​

9,478424​

Regardless of where the industrial user operates (in Free Trade Zone, OIZ, or any other individual site), tariffs and pricing calculations vary solely depending on the consumption level (Grade-1 or Grade-2).

 

Grade-1 Gas Bill Calculation:

 

For the Grade-1 consumption level, the tariff above applies based on the following formula:

 

[Consumption (Sm³) x + 0.023 TRY*] x 1.18***

 

Grade-2 Gas Bill Calculation:

1For industrial users operating in the gold, aluminum, copper, boron, zinc, iron, steel, silver, chromium, lead, magnesium production, petrochemicals sector, and oil refineries, 100% of the total consumption is calculated based on the Daily Gas Reference Price, announced by EPIAS, the organized wholesale gas market operator. The final gas bill is formulated as follows:

 

[Consumption (Sm³) x (Arithmetic Mean of the Daily Reference Prices announced by EPIAS or the first 25 days of the previous month) + 0.023 TRY*] x 1,18***

2For the remaining Grade-2 users, 40% of the total consumption is calculated based on the Daily Gas Reference Price, announced by EPIAS, the organized wholesale gas market operator. The final gas bill calculation is formulated as follows:

 

[0.6* [Consumption (Sm³) x (Tariff per Sm³ + 0.023 TRY* + Transport Tariff per Sm³**(If the distribution company delivers the gas)) + 0.4* (Arithmetic Mean of the Daily Reference Prices announced by EPIAS or the first 25 days of the previous month)] x 1.18***

3For the industrial users in Free Trade Zones, the gas bill calculation is formulated as follows:

 

[0.6* [Consumption (Sm³) x ((Tariff per Sm³ + 0.023 TRY* + Transport Tariff per Sm³**(If the distribution company delivers the gas)] + 0.4* (Arithmetic Mean of the Daily Reference Prices announced by EPIAS or the first 25 days of the previous month)] x 1.18***

 

*0.023 TRY/Sm³: Special Consumption Tax

**Transport Tariff/System Usage Tariff (See the websites of the relevant gas distribution companies)

*** 18% VAT

 

Source: Petroleum Pipeline Corporation (BOTAŞ)

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