Turkish Labor Law
Recently, some misinformation has surfaced about the earnings based on the insurance premium that the employers have reported to the SSI for their employees and whether the payments made are included in the earnings based on the premium. As a result of incomplete and unwarranted notifications made and to be made, there are associated administrative fines and/or administrative sanctions.
One of the problem areas that lead to confusions is around the concept of travel and road money allowance paid to the insured. In this article, we will briefly summarize the impact of the travel and travel money paid by the employer on the earnings based on premium.
First of all, while notifying the earnings information of the insured to SSI, the article 80 of the Social Insurance and General Health Insurance Law numbered 5510 titled “earnings based on premium” follows the below provision:
“Earnings subject to premium of insurance holders within the scope of item (a) of the first paragraph of Article 4 are determined as follows:
a) In the calculation of prime base earnings;
1) Deserved wages,
2) Premiums, bonuses and all kinds of remuneration of this nature, the payments made within that month and the amounts paid by the employers to the private health insurance and private pension system for the insured,
3) Payments made to the insured within that month, in the form of earnings specified in sub-paragraphs (1) and (2) above, in accordance with the decision made by the administration or judicial authorities,
gross sum is taken as basis.
b) Benefits in-kind and benefits for death, maternity and marriage, duty travel allowances, mobile duty compensation, severance pay, lump sum payment in the form of end of work or severance pay, estimation fee, notice and cash indemnities and meals, children and families whose amounts will be determined by the Institution by years Private health insurance premium and individual pension contributions, whose monthly total does not exceed 30% of the minimum wage, paid by employers to private health insurances and private pension system for the insured are not subject to premium-based earnings. ……. ”
Work Travel Expenses
Payments made in the form of travel expenses, daily wages, family expenses and relocation expenses specified in Article 3 of the Travel Allowance Law No. 6245 are considered as work travel expenses.
Road Money
Travel allowance is a payment by employers that is an additional aid to the insured for the purpose of traveling to and from work.
How should Work Travel Expenses and Road Money be Applied?
Considering both the Law and SSI Circulars and the Employer Implementation Communiqué, work travel payments made by employers should not be included in the earnings based on insurance premium, but the road money paid to workers should be included in the earnings based on the premium.
On the other hand, it is another condition to keep the documents to be proven by the evidentiary documents of the work travel payments deposited on behalf of the insured and submit them upon request.
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