Turkish Labor Law
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In Turkey, both employees and employers pay social security premiums as a percentage of the gross base salary plus some other benefits.
SSI base, also called “Earnings Subject to Premium,” has a lower and upper limit. In other words, the base cannot be lower or over these limits regardless of the total amount of earnings.
The lowest premium base is the daily or monthly minimum wage, and upper limit (cap of SSI base) is equal to 7.5 times of daily or monthly gross minimum wage. SSI contributions don’t change over this cap amount.
LOWEST AND CAP SSI BASE AMOUNTS
As monthly gross minimum wage is determined as ₺2,558.40 for 2019, we can calculate the limits as follows:
|
Daily SSI Premium Base/Minimum Limit |
85.28 TRY |
Monthly SSI Premium Base/Minimum Limit |
2,558.40 TRY |
|
Daily SSI Premium Base/ Maximum Limit (Daily Cap of SSI Premium Base) |
639.60 TRY |
Monthly SSI Premium Base/ Maximum Limit (Monthly Cap of SSI Premium Base) |
19,188.00 TRY |
It should be noted that SSI premium base is called as “earnings subject to premium” in the Law No. 5510. This means that SSI premium base does not only include the gross base wage but also some other vested benefits (subject to SSI premiums). However, the base limits will always be the same.
