Business in Turkey

FAQs On Minimum Living Allowance

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What is minimum living allowance?

Part of the wage that constitutes the amount of minimum subsistence level is not subject to income tax for real persons in Turkey legislation.

Minimum Living Allowance (MLA/AGİ)  is calculated on the basis of annual minimum wage regardless of the total earning, and in accordance with the marital status and the number of the children of the employee.

Transfer of an Employee in February

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Transferring an employee (as exit and re-employment) between the workplaces belongs to same employer may cause loss of insured days in the month of February.

In Turkey’s labor legislation number of working days within a month is considered 30, regardless of the actual number of days the month includes in. In other words the workdays of January (31 days), February (28 or 29 days) or March (30 days) is the same from the point of SSI application.  

The employer may transfers the employee to another establishment within the structure of the same holding company or the same group of companies. In case the workplaces are registered under different numbers in SSI, the transfer process will be performed by submitting leaver and new starter declarations, i.e. employee will leave the old workplace and be a new starter in the other.

SPECIFIC CONDITION OF FEBRUARY

As we stated above, SSI premium days for employees who worked full in February is 30, however in case of starting or leaving work during the February the actual days will be taken into account.

Examples: Leavers/New starters in February.

Employee transferred from workplace A to workplace B at 5th February 2017.

 His workdays in A = 4 days

His workdays in B = 24 days (28-4).

Premium paid days will be: 28 days.

Employee will lose 2 premium paid days.

As a result it is recommended that companies try to avoid transferring their employees.

2018 Fines for Illegal Employment of Foreigners in Turkey

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International Workforce Law No. 6735, published in Official Gazette numbered 29800 dated 13 August 2016, has replaced the former Work Permit Law No 4817 and introduced many changes as regard to work permit regulations of foreigners as well as new amounts of administrative fines for illegal employment of foreigners and for failure to fulfill the obligation of notification.

 Administrative fines arranged in Article 23 of the new Law are increased 14,47%, in parallel with the revaluations rate determined for the new year. You can find the previous and current amounts in the table below.

SSI Administrative Fines for 2018

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Administrative fines to be applied by the Social Security Institution are increased in 2018 in parallel to minimum wage hike. Amounts of the fines for the violations specified article 102 of Social Insurance and General Health Insurance Law No. 5510 are as follows.

Support for Employing on-the-job Trainees Continues

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SSI premium support for private sector establishments, who employ trained candidates of training-on-the job programs carried out by Turkish Employment Organization (İŞKUR), has been extended to the end of 2018.

Pursuant to said incentives the employer contribution share of some personnel's social security premiums will be paid from the Unemployment Insurance Fund for certain periods and under some condition stated below.

Intern Wages Updated

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Monthly wage of Interns who are in the scope of compulsory Internship is increased from 381,23 TRY to 435,27 TRY.

As we informed you before, the Government support provided from Unemployment Fund for the employers of interns will continue during 2017-2018 school year. (Cabinet Decree 2017/10834, issued in Official Journal numbered 30216, dated 20 October 2017)

Work Permit Fees of Syrian Nationals Reduced

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General Directorate of International Workforce announced that work permit fees of Syrian Nationals under Temporary Protection are reduced to 200,00 TRY.  

As per Turkish Act on Fees No. 492, temporary work permit (up to one year) fee is 537,50 TRY. However, this amount is decreased to 200,00 TRY for Syrian nationals as of 15 December 2017. 

WORK PERMIT REGULATION OF SYRIANS

“Regulation on Work Permit of Refugees under Temporary Protection" has been issued in the Official Journal No. 2016/8375, dated 15 January 2016, and these refugees will be granted work permit under certain conditions and restrictions.

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