Turkish Labor Law
Payments such as Family Assistance, Child Allowance, Child Benefit, which are among the rights provided to public employees, are frequently encountered in private sector workplaces. Family and child benefits can also be included in public economic enterprises, collective bargaining agreements and other employment agreements transferred to the private sector. Employers benefit from the advantages provided by SGK and Tax while payrolling these payments.
Child Allowance / Allowance Exception Figures – 2022 / 1st Period
Child benefit payments are not included in the earnings base for premium, in a way that does not exceed 2% of the monthly amount of the minimum wage by the SGK. The exception is per child, but it is limited to 2 children.
When the SGK exception amount is calculated over the 2022 minimum wage;
5,004 TL x % 2 =100.08 TRY
If the amount of child allowance exceeds 100.08TRY, the exceeding portion should be added to the basic earnings and the SGK premium and unemployment premium should be calculated over it.
The exception application on the income tax side is not determined over the minimum wage. The criterion here is determined as the civil servant salary coefficient. The income tax exemption figures calculated over the civil servant salary coefficient of 0.235445 determined for 2022 are as follows:
| 01.01.2022 – 30.06.2022 | 01.07.2022 – 31.12.2022 | ||
| Child Hike/ Child Assistance | SGK Exception | 100.08 | 100.08 |
| Income Tax Exception /6+ years | 58.86 | – | |
| Income Tax Exception/0-6 years | 117.72 |
When applying the income tax exemption, the amount of exception to be applied changes according to the age of the child. An exception of 117.72 TRY is applicable for children aged 6 and under, while an exception is 58,86 TRY for children over 6 years old.
Family Assistance Exception Figures – 2022 / 1st Period
Family assistance payments are not included in the earning base for premium, in a way that does not exceed 10% of the monthly amount of the minimum wage by the SGK. The amount exceeding this figure must be subject to SGK premium.
When the family assistance SGK exception amount is calculated over the 2022 minimum wage;
5,004 TRY x % 10 = 500.40 TRY
The exemption on the income tax side in family benefits is only applied for public employees. There is no income tax exemption for family assistance payments to private sector workers.
| 01.01.2022 – 30.06.2022 | 01.07.2022 – 31.12.2022 | ||
| Family Hike/ Family Assistance | SGK Exception | 500.40 | 500.40 |
| Income Tax Exception *PUBLIC | 535.17 | – |
