Turkish Labor Law
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Tax exemption for crèche and day care center services provided outside the workplace has been increased up to 50% of monthly minimum wage.
As is known Crèche and day care center services provided in the workplace directly by the employer for female employees are exempt from income tax without any limit.
The Omniums bill (colloquially known bag law) No. 7103, issued in Official Gazette No. 30373, dated 27th March 2018 stipulated that in case this service is not provided in the workplace, payment to the outside institutions for such service will be exempt from income tax up to 15% of monthly gross minimum wage for per child, and authorized the Council of Ministers to increase this rate up to 50%.
Now with the Cabinet Decree Number 2018/11674 the exemption amount is increased to 50% of monthly gross minimum wage. As a result, monthly tax exemption of crèche aid provided outside of workplace has been increased from 304,00 TRY to 1.015,00 TRY (minimum wage 2.029,50*050).
SUMMARY
As per the clause (16) of article 23 of Income Tax Law 193;
* Crèche and day care center services provided in the workplace directly by the employer for female employees are exempt from income tax without limit,
* In case this service is not provided in the workplace, payment to the outside institutions for such service will be exempt from income tax up to 50% of monthly gross minimum wage,
* Payment must be made directly to these institutions,
* Cash payments to the employees will be subject to income tax.
OBLIGATION OF PROVIDING LACTATION ROOMS AND NURSERY
Pursuant to Regulation on “Work Conditions of Pregnant or Nursing Women, Lactation Rooms and Child Care Units, Article 13” issued in the official journal No. 28737, dated 16th August 2013;
* A lactation room: must be provided by the employer who employs between 100- 150 women (regardless of their marital status or age), outside of but not far away more than 250 meters from the workplace.
* Crèche: For companies with over 150 women workers it is compulsory for employer to establish also a day-care center for 0-6 age group. In case it is far away from the establishment employer must provide the transport.
* In calculation of number of women, all female employees working in same employer’s different workplaces within the municipal boundaries shall be taken into account as total.
* Employers may jointly establish lactation room and/or crèche, or outsource these services from the certificated institutes
