A. Update

As per the Law on Amendments to Tax Laws No. 7524 and Certain Laws and Decree Law No. 375, the short-term insurance premium branch rate of SGK, as given in subparagraph (c) of the first paragraph of Article 81 of the Social Security and General Health Insurance Law No. 5510, has been increased from 2% to 2.25%.

B. Statutory Compliance Release Date: August 02, 2024

C. Effective Date: September 01, 2024

A. Update

According to the Circular number- 27998389-010.06.02- 3248705 dated July 05, 2024, published by the Ministry of Treasury and Finance, the exempted severance pay limit has been revised to TL 35,058.58 from TL 41,828.42.

B. Statutory Compliance Release Date: July 05, 2024

C. Effective Date: July 01, 2024

A. Update

Key payroll parameters have been updated for the tax year 2024 as under:

Kindly refer to the following issues in Official Gazette No. 32415 (2nd Edition), dated December 30, 2023, for the details:

• Serial No: 68 - Stamp Duty Law General Communiqué
• Serial No: 324 - Income Tax General Communiqué

B. Statutory Release Date: December 30, 2023

C. Effective Date: January 01, 2024

A. Update

The Minister of Labor and Social Security has announced the revised minimum wage and SSI minimum wage support effective from January 2024 as under:

B. Statutory Release Date: December 27, 2023

C. Effective Date: January 01, 2024

A. Update

An announcement has been recently posted by the Social Security Institute (SGK) regarding Missing Day Reason (Eksik Gün Nedeninin) “07-Puantaj Kayıtları”.

The announcement refers to the article titled "1.2.3.6- Working by tally method in missing day notification" of Circular No. 2020/20 which provides that if employers who use the missing day reason “07-Puantaj Kayıtları” and determine the number of insurance premium days (prim gün) based solely on the entry and exit hours in the payroll records and by dividing the total number of working hours by seven and a half hours, without a part-time employment contract, it is not acceptable. If the insured does not have a part- time employment contract, the number of insurance premium days (prim gün) will be considered as one day, even if the working time on the payroll record is one hour. Every day signed by the insured in the payroll records will be considered as a full day, and the missing periods should be deducted from 30 days, regardless of whether the month has 28, 30 or 31 days.

Considering this, it has been clarified that the employers should prevent the selection of the "07- Puantaj Kayıtları" code for the insured individuals who did not work at all during the month and who were reported with (0) days (0) earnings in the monthly withholding tax and social premium declaration.

B. Statutory Compliance Release Date: November 20, 2023

C. Effective Date: November 20, 2023

A. Update

As per the Circular no. 2023/25 released by the Social Security Institution (SOSYAL GUVENLIK KURUMU/SSI), the SSI minimum wage support has been determined as 500.00 TL per month for the period from July to December 2023. This support is provided to the employers for each employee who has been insured under the Long-term Insurance Premium Scheme.

The daily earnings subject to Long-term Insurance Premium are determined as 324.00 TL and below, and 647.00 TL and below for the workplaces subject to collective bargaining agreements.

B. Statutory Compliance Release Date: September 01, 2023

C. Effective Date: July 01, 2023

A. Update

The Turkish Ministry of Labor and Social Security announced the increasing of minimum wage for 2023. The revised minimum wages are as follows:

Daily gross minimum wage is 447,15 Turkish Lira (TL)

Monthly gross minimum wage is 13.414,50 Turkish Lira (TL)

Monthly net minimum wage is 11.402,32 Turkish Lira (TL)

B. Statutory Compliance Release Date: June 20, 2023

C. Effective Date: July 1, 2023

A. Update

Social Security and General Health Insurance Law No. 5510 (‘the Law’) has been amended vide Law no. 7438 in Official Gazette 32121. As per the Gazette, temporary Article 95 has been introduced to the Law providing conditions for applicability of Emeklilikte Yasa Takilanlar (EYT) if certain conditions are met by Individuals as mentioned below. Accordingly, Individuals will be eligible to receive old-age or retirement pay, without attaining the prescribed age:

1. Started working on or before September 08, 1999.
2. Fall within the scope of long-term insurance branches (disability, old age, and death insurance).
3. Completed the insurance period of 20 years (for women) and 25 years (for men).
4. Depending on the insurance starting period, premium days should fall between 5,000 and 5,975 days.

In a scenario, where an Individual being an employee retires in accordance with the Law and receives payment under EYT scheme joins back to their previous private sector job within thirty (30) days of their resignation, the Treasury will pay the sum equal to five (5) points of the employer's social security support premium during their employment.

B. Statutory Compliance Release Date: March 03, 2023

C. Effective Date: March 01, 2023

A. Update

According to the Circular number- 27998389-010.06.02- EU $ 327 13/01/2023 published by the Ministry of Treasury and Finance, the exempted severance pay limit has been revised to TL 19,982.83 from TL 10,848.59.

B. Statutory Compliance Release Date: January 13, 2023

C. Effective Date: January 01, 2023

A. Update

As per General Communique on Income tax no. 323 released by the Ministry of Treasury and Finance (Revenue administration), significant changes are made in Article 3 of Law no. 193 dated 31/12/1960 (‘the Law’) related to Income tax rates, Disability allowance, Meal allowance, Transport allowance and Fuel (heating allowance). Further to comprehend, the Social Security agency also brought changes to the exemption limits for the above allowances vide Circular no. 22 and 26 of 2022.

There has been a major change in the tax slabs for the Fiscal year 2023 as compared to Fiscal year 2022, wherein the basic exemption has been increased by more than 100% (i.e., from TRY 32.0000 to TRY 70.000), moreover the income levels for other slabs also have been doubled approximately. Furthermore, disability exemption and meal allowance limits have also been increased by more than 100% in Fiscal year 2023 as compared to fiscal year 2022.

The summary of the changes is provided below:

a) Income tax rates are given below:

b) The Disability allowance is as per below table:

c) Meal allowance:

d) Transport allowance:

While there is no exception for the cash allowance for transport, an exception of 56 TL per day can be applied if the allowance is deposited to the transport card. In case this allowance is provided in the form of a company bus, it should be expensed in accounting without being included in the payroll.

e) Fuel (Heating) allowance:

Fuel Allowance is generally paid by the employer to help the employees incur the cost of heating during the winter months. A new exemption for Fuel allowance has been introduced as per the below limits in calculation of tax and SSI limit. This is a welcome change as it will result in additional tax saving and lesser SSI contribution.

B. Statutory Compliance Release Date: December 30, 2022

C. Effective Date: January 1, 2023

A. Update

The Turkish Labor Law announced increase in the Tax exception amount for Meal cash. The revised amount is as follows:

Daily 51 TL of cash meal payments have been exempted from income tax, stamp duty and SSI premiums. Meal payments exceeding 51 TL will be fully taxed.

B. Statutory Compliance Release Date: Dec 12, 2022

C. Effective Date: Dec 1, 2022

A. Update

The Presidency and Ministry of Labor and Social Security has announced the minimum wages for the year 2023. The revised new minimum wages are as follows:

• Monthly gross minimum wage is 10.008,00 TL
• Monthly net minimum wage is 8.506,80 TL

Further, the same wage cap amounts are announced for Social Security Insurance (SSI) also as provided below:

• SSI base minimum cap is 10.008,00 TL
• SSI base maximum cap is 75.060,00 TL

B. Statutory Compliance Release Date: December 29, 2022

C. Effective Date: December 26, 2022

A. Update

The Turkish Labor Law announced increase in the Tax exception amount for Meal cash. The revised amount is as follows:

Daily 51 TL of meal voucher/ticket payments have been exempted from income tax, SSI premiums. Meal payments exceeding 51 TL will be fully taxed. The exceed amount will be subject to social security premium deduction.

B. Statutory Compliance Release Date: Dec 12, 2022

C. Effective Date: Dec 1, 2022

A. Update

The Turkish Ministry of Labor and Social Security announced increase in the allowances of 2022.

1.2The revised SSI exemptions are as follows:

• SSI Exemption on Child Support Allowance from 100.08 TL to 129.42 TL
• SSI Exemption on Family Support Allowance from 500.04 TL to 647.10 TL

2.Meal Allowance (Cash) / SSI from 10.01 TL to 12.94 TL

3.Tax exemptions

• Child Support (6+ years old) Tax Exemption from 58.86 TL to 83.40 TL
• Child Support (0-6 years old) Tax Exemption from 117.72 TL to 166.80 TL
• Family Support Tax Exemption *Only Civil Servants from 535.17 TL to 758.28 TL

B. Statutory Compliance Release Date: July 1, 2022

C. Effective Date: July 1, 2022

A. Update

The Turkish Labor Law announced increase in the tax exemption amount for Meal and Public transportation card of 2022. The revised amounts are as follows:

Meal Card:

Daily tax exemption is applied on a working day basis, based on this amount has been determined as 51 TRY effective from July 1,2022.

Public Transportation card:

Daily tax exemption is applied on a working day basis, based on this amount has been determined as 25,50 TRY effective from July 1,2022.

B. Statutory Compliance Release Date: July 8, 2022

C. Effective Date: July 1, 2022

A. Update

The Turkish Ministry of Labor and Social Security announced 30 percent increase in the minimum wage of 2022.

The revised minimum wages are as follows:

• Daily gross minimum wage is 215,70 Turkish Lira (TL)
• Monthly gross minimum wage is 6,471 TL
• Monthly net minimum wage is 5,500 TL

The amount of earnings subject to the Insurance premium calculated as per Social Security Institution (SSI) has also undergone as a change as follows:

• Lower limit of monthly earning is 6,471 TL
• Upper limit of monthly earning of SSI is 48.532,50 TL
• Lower limit of daily earning of SSI is 215,70 TL
• Upper limit of daily earning of SSI is 1,617,75 TL

B. Statutory Compliance Release Date: July 1, 2022

C. Effective Date: July 1, 2022

A. Update

According to the Circular number- 27998389-010.06.02-1342135 published by the Ministry of Treasury and Finance, the exempted severance pay limit for the period of July 4, 2022 to December 31, 2022 has been revised to TL 15,371.40 from TL 10,596.74.

B. Statutory Compliance Release Date: July 4, 2022

C. Effective Date: July 1, 2022

A. Update

The Turkish government has further announced updates in following allowance amounts effective CY 2022 which will impact payroll in Turkey.

B. Statutory Compliance Release Date: January 22, 2022

C. Effective Date: January 01, 2022

A. Update

The Turkish government has announced the Budget for CY 2022. Following are the key updates impacting payroll in Turkey.

1. The Income-tax rates for 2022 are shown in the table below:

• There will be no income and stamp tax calculation up to Monthly Minimum Wage.
• Income tax and stamp tax will be calculated for the amount which is exceeding "Monthly Minimum Wage" for all the employees. 4,253.40 TRY Income Tax Base and 5,004 TRY Stamp Tax Base are exempted from the taxes.
• Due to the tax exemption mentioned above, regulation on Minimum Living Allowance  (MLA) has been cancelled and there will be no MLA payment for 2022.

2. The Disability allowance based on Grades have been changed. Please refer the table below:

3. The Minimum wage for CY 2022 has been announced which would impact the limits for SSI calculations. Please refer the table below for minimum and maximum limit:

4. The termination indemnity limit (severance pay limit) has been set at TRY 10,848.59.

5. Following Allowances amount have been revised for CY 2022:

B. Statutory Compliance Release Date: December 16 and 23, 2021 and January 22, 2022

C. Effective Date: January 01, 2022

A. Update

Social Security Office will be able to submit all documents required to be notified in accordance with its legislation to employers in electronic environment. Employers must obtain an electronic notification address within 3 months as of October 01, 2021. New employers as of October 01, 2021 must obtain an electronic notification address within three months after SSI opening date.

Social Security Office has shared on December 10, 2021 explained the procedures and principles regarding the notification to be made in the electronic environment and the opening of the e-notification system. The application period shall expire on January 31, 2022.

The notifications and process have been shared in the source.

B. Statutory Compliance Release Date: September 24, 2021

C. Effective Date: October 01, 2021

A. Update

The severance pay to be calculated for the employees who have been terminated and deserved severance pay should be calculated considering the seniority ceiling determined as 8,284.51 TRY.

B. Statutory Compliance Release Date: July 07, 2021

C. Effective Date: July 01, 2021

A. Update

With the Civil servant salary hike, there has been a change in the limits for Family Assistance and Child benefit allowance. This pertains to the second half of 2021. Following are the limits:

B. Statutory Compliance Release Date: July 07, 2021

C. Effective Date: July 01, 2021.

A. Update

Remote working days should be declared via SSI list, this is a new update issued by the Ministry of Labor and Social Security. Following are the points for reference:

• It is obligatory to make a remote working contract in written way.
• The time frame and duration of remote working will be specified in the employment contract.
• It will be possible to carry out all the work performed remotely, or to perform some of the work remotely, and some of it by working at the workplace (including a mixed contract, provided that a written contract is made),
• For the employees who work remotely during the entire working period, national holidays and general holidays, annual paid leave or weekends will be included in the number of days to work remotely; for the employees who are employed with mixed contracts that include both workplace and remote work, only the days worked remotely will be reported as the number of remote working days.

B. Statutory Compliance Release Date: July 05, 2021

C. Effective Date: June 30, 2021

A. Update

1. As per General Communiqué No. 313 on personal income tax, the personal income tax table for employment income has been changed as per below table along with changes in rates for allowances, exemption:

2. The Disability allowance is as per below table:

3. The Meal allowance in Kind is TRY 25 per day.

4. The Decision of the Minimum Wage Determination Committee was published in Official Gazette No. 31350 (second edition) of 30 December 2020 changing the Minimum wage amount to TRY 3,577.50 and maximum wages amount to TRY 26,831.25.

5. The Minimum Living Allowance has updated as per below table:

6. The Severance Pay Limit has been increased to TRY 7638.96 for the first six months of 2021.

B. Statutory Compliance Release Date: December 29, 2020

C. Effective Date: January 01, 2021

A. Update

Severance payment is exempted from the income tax based on the yearly capped amount by multiplying the individual’s number of employment years in a company. This capped amount has increased to 7117.17 TRY from 6739.86 TRY.

B. Statutory Compliance Release Date: July 06, 2020

C. Effective Date: July 01, 2020

A. Update

The government of Turkey has introduced a new tax declaration process which combines both tax and social security information (SSI). The new declaration process was first announced in 2016 but its introduction was pushed back before it will eventually be implemented on March 01,  2020. The declaration form shall be filed electronically and there is an excel upload form available. Due to COVID-19 pandemic the declaration form was eventually implemented from August 26, 2020.

B. Statutory Compliance Release Date: February 09, 2020

C. Effective Date: August 26, 2020

A. Update

1. On December 27, 2019, General Communiqué No. 310 on the Personal Income Tax Law (the Communiqué) was published in the second edition of the Official Gazette.

2. The Communiqué updated certain amounts and the income tax tables relating to the Personal Income Tax Law for 2020 based on the revaluation rate (22.58%) determined for tax year 2019. The tax table applicable to employment income in 2020 is as follows:

3. The Disability threshold amounts have increased to the following:

4. The exemption value for travel within Turkey has been increased from TRY 61.5 to TRY 66.85 and Meal allowance in Kind has increased from TRY 19 to TRY 23/ day.

5. The Maximum ceiling amount for social security is TRY 22,075.50.

6. The Minimum Living Allowance (Substance allowance) has increased as follows for the year 2020:

7. The severance pay threshold amount has changed from January 01, 2020 to TRY 6,739.86 from TRY 6,379.86.

B. Statutory Compliance Release Date: December 27, 2019

C. Effective Date: January 01, 2020

A. Update

Minimum Wage Determination Committee has set the monthly gross amounts of minimum wages at TRY 2,943 for the period January 01, 2020 through December 31, 2020.

Accordingly, the monthly cost of a single employee earning a minimum wage for the employer will be TRY 3,458.03

This will impact the social security calculation.

B. Statutory Compliance Release Date: December 27, 2019

C. Effective Date: January 01, 2020