Turkish Labor Law
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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.
MAIL GIVEN IN THE PREMISES
Total amount of meal provided in workplace or outbuildings of the company is not subject to tax and premium contributions.
Many manufacturing companies with big numbers of employees usually prefer this way as it is cheaper and time saving.
MONEY PAID TO EMPLOYEES FOR THEIR MAIL
- Money paid to employees for their mail is deemed as part of the salary and included in the payroll, therefore subject to income tax as a whole. (Income Tax Law, 61, 94, 103, 104)
- The part exceeding the 6 % of daily gross minimum wage is subject to SSI premium contribution. In other words 2,55 TL (42,45 x %6, for the second half of 2015) of meal money is exempt from SSI premium deduction.
MAIL TICKETS AND VOUCHERS
Providing meal voucher/checks for virtually worked days:
- up to 13.00 TL daily, excluded VAT (for second half of 2015) is exempted from income tax,
- not subject to premium contributions.
Employer writes off the cost of the meal tickets by documenting it with catering firm’s invoice.
This exemption is applicable only for the meal vouchers/checks used on meals and belonged to virtually worked days. Where they are spend on products other than meals and foods, the amounts paid for them must be considered as part of the wage and must be subject to income tax.
Also they should be used in virtually worked days. For example: if employees are not working on Saturdays and Sundays and are given 30 days meal tickets/vouchers for a month, the amount of tickets (including VAT=Value Added Tax) for Sundays and Saturdays should be assessed as net wage for employee and be subject to income tax.
