Business in Turkey

No Decrease in Net Minimum Wage of 2017

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asgari ucret dusecek mi

2017 net minimum wage will not be affected from the shift on taxable income brackets and will not get lower than 1.404 TRY.

Draft law on Amending Some Tax Laws and Governmental Decrees , intended to prevent any decrease in 2017 net minimum wage due to shift in the taxable income brackets, has been presented to General Assembly  and expected to be in force soon.

What is Identity Form?

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online kimlik bildirimi

All employers are obliged to notify their workplace and employers to the police station at which the workplace is established, as per the article 6/b of “Identity Notification Law No. 1774”. 

Employers within this scope have to submit their temporary and permanent employees' identity information by "Manager Identity Notification Form" and “Employees' Identity Information Form"  to their registered police headquarters, after had these documents approved by mukhtar of neighborhood in which the workplace take place.

Those who, by violating the Identity Notification Law No. 1774, don't submit the above mentioned notifications will be imposed administrative fines amounting from 33 TRY for the year 2017.

At the present time, the notification is made online.

Can Foreign Employees be Retired in Turkey?

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resul kurt yabanci

Yes! Labor legislation of Turkey is applicable to Turkish citizens and foreign employees alike. Also, the Turkish Constitution contains provisions concerning equality, and guarantees the right to social security for everyone.

Anyone who are working against wage under an employment contract and paying their social security premiums will be entitled to retirement from SGK/SSI. In practice, social security premiums of an employee are deducted from their salary and paid to SSI by the employer.  Even in case of entitled employee’s death, dependent spouse and children will benefit from the pension.

Change in the Taxable Income Brackets on the Way

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gelir vergisi hesaplama

Starting from 2018, income tax rate that applied to 3rd taxable income bracket will be increased from 27% to 30%. 

In a press conference held for introducing Turkey’s “Medium Term Program,” Finance Minister Naci Ağbal announced some tax hikes and revision in income tax tariff to be applied within the next years.

Most significant proposed change from the point of wages and payroll calculation is the extra 3% change on the income tax rate applied to 3rd income section (bracket).  In practice, it seems that the amendment will affect the medium and comparatively high wages most.

What are the Conditions of Establishing Subcontractor Relation?

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taseron kidem tazminati

Nature of works that can be permitted for subcontractors and conditions of establishing subcontractor relation is arranged in Labor Law 4857, Article 2/6-7) and Subcontractor Regulation.

Works permitted for subcontractors

 As a rule, the auxiliary works related to the production of goods and services or in a certain section of the main activity due to operational requirements or for reasons of technological expertise in the establishment of the main employer can be given to subcontractor.

What is Subcontractor Relation?

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taseron yillik izin

Subcontractor can simply be defined as an individual or a firm who contracts (undertakes) to perform the part of another company’s work. The work that is undertaken by the subcontractor is generally an auxiliary task requiring technological skill, or the work meeting the operational requirements of a main employer.

Subcontractor relation is arranged in Article 2/6-7 of the Labor Law No. 4857 as;

“The connection between the subcontractor who undertakes to carry out work in auxiliary tasks related to the production of goods and services or in a certain section of the main activity due to operational requirements or for reasons of technological expertise in the establishment of the main employer (the principal employer) and who engages employees recruited for this purpose exclusively in the establishment of the main employer is called “the principal employer-subcontractor relationship”. The principal employer shall be jointly liable with the subcontractor for the obligations ensuing from this Labor Act, from employment contracts of subcontractor's employees or from the collective agreement to which the subcontractor has been signatory.”

When to Submit Leaver Declaration?

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isten ayrilis

When the employees who are working against wage under an employment contract leave the employment (termination of employment contract), SSI/SGK should be informed by filling the form online in its website within 10 days as of the leaving the date. (Social Insurance and General Health Insurance Law No. 5510, article 9/1-b)

This procedure is also called deregistration of leavers. A leaver declaration should be filled in SSI website; stating the date of termination of employment contract, reason of termination and occupation code. 

In case the last submission day of leaver declaration coincides with an official holiday, declaration can be submitted on the day following the official holiday.

Do You Have to Notify Workplace Shut Down to SSI?

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sirket kapanis


No obligation of workplace shut down notification is specified in the Law. Also, there is no penal provision regarding the matter.

In case there is no mobility in SSI’s e declaration  system the Institution removes the workplace out of the scope of Law No 5510 (Social Insurance and General Health Insurance)  ex officio. 

However, it is preferable for the employer to inform the SSI with a certified mail, stating the workplace registry number, and notifying that workplace is no longer active and no employee is working. 

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