Turkish labor ministry announced Friday that it raised its minimum wage by 14.2 percent as of New Year's Day, to just over 1,600 Turkish liras per month ($422).

"The minimum wage in Turkey is rising from 1,404 Turkish liras per month ($370) to 1,603 liras ($423) per month as of 2018, after reaching an agreement with stakeholders following month-long negotiations," Labor Minister Jülide Sarıeroğlu said at a press conference.

The new gross minimum wage, before deductions such as social security premiums and income taxes, is 2,029 liras ($535.9).

The wage is being set by the Minimum Wage Commission after meetings between government officials and representatives of workers and employers.

The new minimum wage is significantly below the demand of workers' representatives.