Turkish Labor Law
Related Articles
In principle annual leave right cannot be waived and cannot be converted into wage unless the employment contract is terminated. So payment for unused vacations is possible only in case of termination of the contract.
Upon the termination the unused annual leave remuneration must be paid to employee or the persons entitled on his behalf at the wage rate valid on the date of termination.
Due but not yet used annual leave days are multiplied by the daily gross wage valid in termination date.
Deductions from annual leave pay:
- SSI premium is 15%
- Income tax based on the applicable taxable income tax bracket.
- Stamp tax.
- Minimum living allowance is not included in the calculation.
Related Article:
Article 59 of Labor Law 4857 reads as follows;
“Any annual leave remuneration due to but not yet drawn by an employee must be paid to him or to other persons entitled on his behalf, upon the termination of his employment contract for any reason, at the wage rate prevailing on the date of termination.
Statutory limitations on such wages which have become due shall begin as of the date of the termination of the contract.
Where the employment contract has been terminated by the employer, the terms of notice prescribed in Article 17 and the leave of absence to be granted according to Article 27 for seeking new employment must not overlap with the annual leave period.”
Example:
Employee’s salary is 1.777,50 (gross minimum wage). Unused annual leave is 14 days.
Daily gross wage: 1.777,50/30=59,25
Unused annual leave pay (gross): 14*59,25=829,50
Deduction:
SSI Premium: 15%*829,50=124,42
Income tax base: 829,50-124,42=705,08
Income tax:15%*705,08=105,76
Stamp tax: 829,50*0,00759=6,29
Net=829,50 – (124,42+105,76+6,29)=593,03 TRY
