Make Your Calculations in Advance, Increase Your Business’s Efficiency!

The most important asset that enables a business to continue its existence is undoubtedly its employees. There are dozens, hundreds and even thousands of employees in many different positions in every business. It should not be forgotten that the employer makes regular expenses for these employees other than their salaries, so it is very difficult for a company that does not make healthy predictions about labor costs to survive for a long time. So how is personnel cost calculated? We know that each employee is included in different salary scales, starting from the minimum wage, depending on their professional knowledge, experience and contributions to the organization. However, it is possible to use various formulas to calculate personnel costs along with other expenses in addition to salary.

Let’s Look at the Concept of Gross Salary First! – Personnel Cost Calculation

In order to give a healthy answer to the question of how to calculate personnel costs, let’s first understand what gross salary is. The salary that the employee receives from his employer is the net salary. Net salary is actually the form of gross salary after income tax, unemployment and insurance premiums have been deducted. Since income tax increases cumulatively throughout the year, the gross salary cost for the employer actually increases from month to month. When we look at 2022 employee costs, the distribution of income tax in proportion to monthly income is as follows:

• 15% up to 32,000 TL,
• 20% up to 70,000 TL,
• 27% up to 250,000 TL,
• 35% up to 880,000 TL,
• 40% income tax is applied for more than 880,000 TL.

What is Needed to Calculate Insurance Cost? – 2022 Labor Costs

As we mentioned above, one of the figures included in the gross salary is unemployment and insurance premiums. So how can you calculate these amounts that must be paid in advance for employees to benefit from social security and health services? A personnel cost is determined by the SGK and unemployment premiums added to the gross salary. However, it should not be forgotten that situations such as employees’ status and tax deductions bring about changes in these costs. For this reason, you should also take into account the SGK ceiling and base bases for a full SGK personnel cost calculation. The employer’s share of an employee’s SGK cost is generally 20.5%, and the employee’s share is 14%. Similarly, the unemployment premium is determined as 2% employer’s share and 1% employee.

What Has Changed in 2022 Labor Costs?

The biggest change in 2022 labor costs is actually the changes made regarding the stamp duty paid for the minimum wage, income tax and AGI. The AGI, which stands for Minimum Living Allowance, has been completely abolished due to the reduction of the tax burden. Similarly, stamp duty has been exempted for the minimum wage, and similarly, the portion of income tax that comes after the employee’s SGK premiums are deducted from the gross amount has been abolished. Therefore, the personnel cost of a minimum wage employee can be calculated from the employer’s perspective as “gross wage + SGK premium (employer’s share) + unemployment insurance fund (employer’s share)”. In fact, this amount corresponds to a figure of 1025 lira in addition to the gross wage.