Turkish Labor Law
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United Nation has proclaimed 3 December as “International Day of Persons with Disabilities” in 1992 to create awareness on the problems of disabled persons.
In our recent write up that can be accessed in http://turkishlaborlaw.com/faq/343-is-it-obligatory-to-employ-disabled-personnel we mentioned briefly the obligation of employing disabled personnel in private sector establishments, and in following articles we are going to touch on the tax deductions granted for disables and premium incentives for employers hiring disabled workers.
Income Tax Allowance for Disabled Workers
Disability allowance amounts are determined depending on degree of disability by government every year in accordance with Article 31 of Income Tax Law No.193. The degrees of disability and monthly amounts to be deducted from taxable income base in 2015 are as follows;
1st Degree Disabled Employee, who lost at least 80% of the working capacity will be benefiting from tax allowance of 880 TL monthly, and will be paying 132 TL less that other workers.
2nd Degree Disabled Employee, who lost at least 60% of the working capacity will be benefiting from tax allowance of 440 TL monthly, and will be paying 66 TL less that other workers.
3rd Degree Disabled Employee, who lost at least 40% of the working capacity will be benefiting from tax allowance of 200 TL monthly, and will be paying 30 TL less that other workers.
Who Can Benefit: Wage earning employees and self-employed people, whether they have the above mentioned degrees of disability themselves or they have depended disabled people in their family that they are obliged to look after. In the application of this rule, there is no age limit for the depended children who have to be looked after.
How to Apply for Tax Allowance: By submitting a petition with the health report showing the disability degree to the relative tax office.
SSI Premium Incentives for Employers who employ Disabled Workers
As per the amended Article 30 of Labor Law No. 4857, the entire employer share of SSI premium contributions that calculated based on the lowest premium base for each disabled personnel will be paid by Treasury.
Employer should notify the mentioned employees, within the quota or non-quota, by choosing the “Incentive Law Number 14857” in the e-declaration menu on the
SSI system.
It is possible to benefit both from the incentive of %5 granted by Law No. 5510 and the above mentioned incentive at the same time.
Conditions for benefiting: Employer;
- should pay the entire SSI premiums contribution of disabled employee
- and the remaining balance for the employer premiums after the deduction of the employer incentive within legal period
- should not employ informally, or not notifying a worker as insured who is not actually working in the workplace.
