In Turkey, Payroll Parameters are strictly connected with minimum wage usually determined twice to cover the first and second half of the year; however as an exception minimum wage of 2016 has been raised for ones and will be the same all along the 2016. As result of this only a few items, most important of which is the cap of severance pay have been changed as it will be seen table below.
Business in Turkey
As the new year is approaching finance departments of many companies are very busy with the hard task of preparing the next year’s annual budget which will be a guideline for the future spending and activities of the company.
What makes the upcoming year special is the %30 rise on the minimum wage and the uncertainties about the total labor cost of employer which comprises the substantial part of the expenditures.
In this article we are going to share our estimated calculation of the rise in the minimum wage and its inevitable additional cost on employers, and its impact on the next year’s parameters to help you to make correct predictions while preparing your personnel budgets.
After the 3 December has been proclaimed as “International Day of Persons with Disabilities” in 1992, “The Convention on the Rights of Persons with Disabilities and its Optional Protocol” which is signed and ratified by Turkey, was adopted on 13 December 2006 at the United Nations. Purpose of the Convention is stated as “to promote, protect and ensure the full and equal enjoyment of all human rights and fundamental freedoms by all persons with disabilities, and to promote respect for their inherent dignity,” and the right of persons with disabilities to work, on an equal basis with others is stressed on Article 27 of the Convention.
Turkey has taken steps to apply affirmative actions to create equal and safer work conditions for disabled persons by the provisions arranged in Labor Law No. 4857, Article 30, and the “Regulation on Employment of Disabled, Ex-convict and Terror-stricken Persons”.
Turkey is a party to many international agreements and conventions, some of which have precedence over domestic laws, aimed at struggling against discrimination between people as regard to religion, sect, race, color, age or sex, and such grounds.
Firstly, Article 10 of Constitution sets forth the general framework of “Equality Before the Law” and reads as follows;
"Everyone is equal before the law without distinction as to language, race, color, sex, political opinion, philosophical belief, religion and sect, or any such grounds …
No privilege shall be granted to any individual, family, group or class. State organs and administrative authorities are obliged to act in compliance with the principle of equality before the law in all their proceedings."
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.
One of the common issues on the area of labor life is the accounting treatment of benefits in kind and other allowances that should be treated differently from the wages.
Benefits in kind can simply be defined as payments in kind and subsidization by employer provided for employees’ personal or social needs. Also the money paid to employees, depending on its purpose, may be deemed as a kind benefit and may have some exemptions as regard to tax and premium contribution.
Although it is not an obligation in Turkey’s labor legislation most of the employer prefer to provide meal for the employees in various ways. Meal benefit is arranged in employment contracts and collective agreements.
This benefit may be provided by;
giving meals in the premises,
paying in cash directly to employees,
giving meal tickets/vouchers.
These three types of mail benefits differ as regard to their tax and SSI premium subjection.
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