Remuneration Management

We would like to inform you about the general principles as well as general functioning, calculation methods and scope of the Remuneration Management System, which is an issue that we encounter a lot in employee satisfaction questionnaires and question boxes.

Remuneration is the value in cash and in kind against the work performed by the workforce that has contributed its mental or physical labour.

TAV Airports Holding Human Resources Department manages the remuneration system for 15 Group Companies and 12,624 Employees and 1,700 different positions in Turkey, as well as 22 Group Companies and 2,884 employees abroad, in accordance with the budgeted personnel costs.

TAV adopts a fair remuneration management system, based on job evaluation in connection with the performance management system, which takes into consideration the in-house balances and market conditions.

Competence, which can be defined as the level of knowledge, skills and talents that the personnel must have in order to perform its duties in an efficient and productive way, is an important concept in terms of human resources management and remuneration.

As part of Job Evaluation and Remuneration Management; each position in the organization is grouped separately or according to differences and similarities with each other, as work families, and evaluated and graded according to:

  • • Size of the organization and impact of the position on the organization
  • • Human management responsibility
  • • Scope of responsibility (diversity of task contents and liberty to act independently)
  • • Necessary communication/interaction skills
  • • Education and experience requirement of the task
  • • Characteristics of the problems that the employee is expected to overcome and creativity requirement
  • • Risks regarding the task and working conditions.
What is Job Evaluation?

What is Job Evaluation?

- Positions are evaluated not the people.

- Evaluation is made regardless of the remuneration

- 100% performance is taken into consideration

- Job is evaluated in its present conditions

- Job is not evaluated without understanding it in detail

- Organizational Structure is taken into consideration

- The purpose is Reconciliation

TAV Airports Holding and Group Companies are working with Korn Ferry Hay Group for job evaluation and market remuneration researches. In 2017, Korn Ferry Hay Group compiled remuneration and fringe benefits data of a total of 734,458 employees from 1,578 participating organizations in Turkey. Each year, Korn Ferry Hay Group provides detailed data on the acquisition of sectoral remuneration data with new participant profiles and updated employee information. TAV Holding Human Resources Department determine the remuneration policies according to the review of the sector data and in line with TAV strategies.

4 different remuneration policies are used at TAV Holding and its Group Companies. The most significant reasons why different remuneration policies are used are; the sectors of our subsidiaries and affiliates operate, the scope of their services, the sectors in which we compete for the recruitment of our employees, and the differences in terms of turnovers and number of employees. Remuneration policies and the companies that use these policies are listed below.

• TAV Airports Holding

Holding – US $500 million turnover and over 1,500 employees – 22 Holding Companies

• Operation – US $50 million turnover and over 100 employees - 888 Operation Companies

-TAV Istanbul

-TAV Ankara

-TAV İzmir

-TAV Gazipaşa

-TAV Milas




• Security – US $50 million turnover and over 100 employees – Support Services and Security Position Comparison – 159 Support service Companies and 43 Bank security Personnel data.

- TAV Private Security

• IT – US $50 million turnover and over 100 employees – Information Technologies Family – 42 Technology, Software and Banking Companies

In addition to our company based remuneration policies, the cost of living at the cities that our companies are located are also taken into consideration, city indexes are calculated and specific remuneration policies are established according to the cities.

While determining the remuneration of each employee, remuneration policies of company, company's in-house balance, as well as position in range (PIR) are taken into consideration. The calculation for the position in range (PIR) is given in the following table. Acceptable minimum value is 70%; while the maximum value is 130%. The total and relevant experiences of the employees and their positions in the market are also taken into account.


PIR=(Employee’s remuneration/Remuneration Policy) * 100

Long Tem Superior Performance


Learning and Developing – 70% - 90%

Expected Work Results – 90% - 110%

-Outstanding Performance – 110% - 130%

Personnel budget of the upcoming year is prepared during August-September of each year. During the budget calculations, inflation estimations shared by TAV Holding Budget and Planning Directorate, inflation trends of the previous years, minimum wage estimations, sectoral remuneration increase estimations, strategies determined by TAV Holding’s upper management are taken into consideration for remuneration increase rate estimations. With this remuneration increase rate and payroll parameter estimations, clone payrolls for the staff that our companies plan to employ during the following year are considered. Controls performed on these clone payrolls and values that are not cloned (overtime, social aids, severance pay estimates) are also calculated for the following year’s personnel budget.

During end-of-year remuneration increase, the budgets that were calculated in August-September period of the previous year and that were approved by the senior management are taken into consideration. Deviations in inflation estimates after the budget period, actual minimum wage, strategic decisions and company-based arrangements required, if any, are reviewed and remuneration increase rate is re-calculated and submitted to the senior management for approval. Remuneration calculations are carried out in accordance with the latest general remuneration increase rate approved by the senior management.

Obviously, general remuneration rate approved is not applied to all employees. Personal performance results that are calculated by the Performance Evaluation System, which is an integral part of our remuneration management system, and employee’s position in range are also effective.

Determination of General Remuneration Increase Rate

- TUIK – Inflation – Market Research – Korn Ferry Hay Group

- Minimum Wage Determination Commission – Minimum Wage – Remuneration Increase Rate – Adjustments – VP/GM/Director – Human Resources

Determination of Each Employee’s Remuneration Increase Rate

In line with the general remuneration increase rate and each employee’s remuneration increase calculation, TAV Holding Human Resources Department carries out remuneration increase study for all employees working in the Group Companies in Turkey. During these general remuneration increase studies, the overall increase rate of the company-based works shall not exceed the rate approved by the senior management.

Bonuses are also calculated together with the end-of-year remuneration calculations. Taking into account the rate of companies reaching their financial and strategic targets, bonus payments can be issued following the approval of the CEO. Employees’ position levels, performance evaluation results and companies’ bonus budgets are considered in bonus calculations. The calculated bonus amounts shall not exceed the budget amount.

Remuneration increase calculations and bonus studies carried out by TAV Holding Human Resources Department are submitted to the Human Resources Managers and General Managers of the Group Companies; while studies conducted for TAV Holding are submitted to the Function Managers for revisions and alterations. After the revisions, they are returned to TAV Holding Human Resources Department. Following the finalization of the remuneration studies of all Group Companies, lists are submitted to the approval of the CEO. Finally, the approved lists are submitted to the related units for the initiation of payroll preparation works.

During all remuneration determination studies, the purpose of TAV Holding Human Resources Department is to define the remuneration of employees in accordance with the interests of the companies and budgets; as well as following a fair and applicable system for all employees.