Regional Incentive Extended

The regional incentive, which has been applied since 2013 in order to eliminate the regional imbalance, is now extended until 31 December 2019. As per Presidential Decree No. 305 issued in Official Gazette dated 25 December 2018, 6 point social security premium support for the companies established in 1st, 2nd …

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Disability Tax Allowance 2019

Disability tax allowance is intended to decrease the income tax amount of the disabled employees. The amounts are determined depending on degree of disability by government every year in accordance with Article 31 of Income Tax Law No. 193. The employees may also benefit from this allowance for their disabled …

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Cap of Severance Announced

Cap of severance pay (the upper limit) has been announced as 6.017,60 TRY/Year for the first half of the year. This limit will be applied within the period between 1 January 2019 and 30 June 2019. Qualified employees are paid a severance pay equal to the last 30 days’ gross …

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2020 Payroll Parameters


Payroll parameters to be implemented in the first half of 2020 are as follows. Payroll parameters to be implemented in the first half of 2020 are as follows. 2020 PAYROLL PARAMETERS APPLICATION NAMES              TRY Daily Minimum Gross Salary 98,10 Monthly Minimum Gross Salary 2.943,00 Monthly Net Minimum Wage – …

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2019 SSI Premium Base Limits


In Turkey, both employees and employers pay social security premiums as a percentage of the gross base salary plus some other benefits. SSI base, also called “Earnings Subject to Premium,” has a lower and upper limit. In other words, the base cannot be lower or over these limits regardless of …

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Income Tax Tariffs Announced


In Turkey, income tax rates are applied progressively by taking into consideration the yearly cumulative income tax base. As a result, income tax rate may vary from month to month during the year. There are 4 different income sections (tax brackets) to which different tax rates are applied. Also, these …

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2019 Minimum Living Allowance and Net Wages


2019 Gross Monthly Wage has been determined as 2,558.40 TRY (net 2,020.91 for single employee) with a 26% wage hike. Employees’ net wages differ depending on their marital status, because of Minimum Living Allowance (MLA). Minimum Living Allowance (MLA/AGİ)  is calculated on the basis of annual minimum wage in accordance …

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Labor Cost of Employer in 2019


As we earlier informed you, 2019 monthly gross minimum wage has been determined as 2,558.40 Turkish Lira. This 26.05% wage hike is higher than the expected increase, and will considerably impact the labor cost of employer. Because minimum wage is a key determinant of many payroll parameters in Turkey, the …

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2019 Minimum Wage Announced with 26% Hike


Minimum Wage 2019 has been announced as gross 2,558.40 TRY, net 2,020.91 TRY to be implemented all through the year. Minister of Family, Labor and Social Services revealed the decision of Minimum Wage Fixing Board at a press conference that Turkey’s monthly gross minimum wage is increased from 2,029.50 to 2,558.40 with a monthly 26% wage …

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Electronic Notification Obligation Begins in the New Year


Electronic notification is a system enables entities to get their communication through e mails, text messages etc. instead of physical mails. In Turkey this system was started at 2016 for the income and corporate tax payers who are obligated to receive all the notifications sent by the tax offices. Now …

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