MINIMUM LIVING ALLOWANCE SUPPORT STARTS

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Minimum Living Allowance (MLA/AGİ) support intended to compensate any decrease in monthly minimum wage due to shift on taxable income brackets started in September and will continue to the end of the year.

As is known, tax rates are applied by taken the cumulative income as a base. So the minimum wage shifts to second tax bracket about on September (from 15% to 20%) and get lower than monthly net 1.603,12 TRY.

Minimum living allowance support became permanent by Law No. 703.

As per the General Communique (Serial No. 303) issue in the Official Gazette numbered 30448, dated 11 June 2018, minimum wage will not be affected from the shift on taxable income brackets and will not get lower than the net amount received on January.

DIFFERENCE IN APPLICATION

In last year application only the minimum wage for single was taken as base (net 1.603,12 TRY) , but according to above mentioned Communique the base will be the net amount minimum wage earners get in January.

An employee may have additional payments such as meal allowance, transportation pay, bonus etc. and their January payments can be over 1.603,12 TRY (Base salary + Additional pays). In the new application employees base salary will not get lower than 1.603,12 TRY.

For detailed application please visit our website:

http://turkishlaborlaw.com/news/legal-news/613-2018-minimum-living-allowance-support-for-minimum-wage

http://turkishlaborlaw.com/news/business-in-turkey/556-minimum-living-allowance-support-for-minimum-wage

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