Social Security Parameters in Turkey
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Turkey Payroll Outsourcing Alert – Social Security Payroll Parameters for 2020
Turkey payroll outsourcing leader issues a statutory alert for Turkey.
Mercans has alerted its Turkey payroll outsourcing clients of Social Security Parameters related changes. Effective from 1st of January 2020, the government of Turkey has increased the Social Security Minimum Wage Amount to 2,934.00 TRY Gross and 2,324.71 TRY Net for single employees. The monthly SSI Ceiling Amount has increased to a gross amount of 22,072.50 TRY.
Please find the previous and new amounts under below table,
| UYGULAMA ADI | APPLICATION NAME | For 2019 Period | For 2020 Period |
|---|---|---|---|
| Gunluk Prime Esas Kazanc/SGK / AltSınır | SS Minimum Base Amount Daily | TRY 85.28 | TRY 98.10 |
| Aylık Prime Esas Kazanc / SGK / Alt Sınır | SS Minimum Base Amount Monthly | TRY 2,558.40 | TRY 2,943.00 |
| Gunluk Prime Esas Kazanc /SGK /ÜstSınır | SS Ceiling Amount Monthiy Daily | TRY 639.60 | TRY 735.75 |
| Aylık Prime Esas Kazanc / SGK / Üst Sınır | SS Ceiling Amount Monthly | TRY 19,188.00 | TRY 22,072.50 |
In accordance with the amended minimum amounts, the social security contributions for employees and employers will be calculated as summarized below:
| Brut Asgari Ucret | SS Minimum Base Wage | 2,943.00 |
| SGK Isci Payi (%14) | SSI Employee Part (%14) | 412.02 |
| SGK Isci Issizlik Payi (%1) | SSI Ünemployment Employce (%1) | 29.43 |
| Gelir vergisi Matrahi | Income Tax Gross | 2,501.55 |
| Gelir vergisi Kesintisi (%15) | Income Tax Deduction (%15) | 375.23 |
| Damga Vergisi (%0.759) | Stamp Tax (%0.759) | 22.34 |
| Net Asgari Ucret | Net Minium Base Salary | 2,103.98 |
| Asgari Gecim Indirimi (Bekar) | Minimum Living Allowance (Single EE) | 220.73 |
| Odenecek Net Asgari Ucret | Net Salary Payment Amount | 2,324.71 |
| SGK Isveren Payi (%20.50) | SSI Employer Part (%20.50) | 603.32 |
| SGK Issizlik Isveren Payi (%2) | SSI Unemployement Employer (%2) | 58.86 |
| Hazine Tesvik %5 | %5 incentive for Employer | 147.15 |
| Isveren Maliyeti | Employer Cost | 3,458.03 |
Minimum Living Allowance Amounts (AGI) for 2020
The Turkish government has announced the following Minimum Living Allowances (AGI) for 2020. These amounts will be directly added to employees’ salaries based on their marital statuses.
| Asgari Gecim Indirimi Tutarlari (AGI) | Minimul Living Allowance Amounts | For 2019 Period | For 2020 Period |
|---|---|---|---|
| Bekar | Single | TRY 191.88 | TRY 220.73 |
| Evli eşi çalışan | Married + (wife/husband working) | TRY 191.88 | TRY 220.73 |
| EVli eşi çalışan 1 çocuk | Marrled + (wife/husband working) + 1 child | TRY 220.66 | TRY 253.83 |
| Evli eşi çalışan 2 çocuk | Married + (wife/husband working) + 2 child | TRY 249.44 | TRY 286.94 |
| Evli eşi çalışan 3 çocuk | Marrled + (wife/husband working) + 3 child | TRY 287.82 | TRY 331.09 |
| Evli eşi çalışan 4 çocuk | Married + (wife/husband working) + 4 child | TRY 307.01 | TRY 353.16 |
| Evli eşi çalışan 5 çocuk | Married + (wife/husband working) + 5 child | TRY 326.20 | TRY 375.23 |
| Evli eşiçalşmayan | Married + (wife/husband not working) | TRY 230.26 | TRY 264.87 |
| Evli eşi çalşmayan 1 çocuk | Married + (wife/husband not working) + 1 child | TRY 259.04 | TRY 297.98 |
| Evli eşi çalşmayan 2 çocuk | Married + (wife/husband not working) + 2 child | TRY 287.82 | TRY 331.09 |
| Evli eşi çalşmayan 3 çocuk | Married + (wife/husband not working) + 3 child | TRY 326.20 | TRY 375.23 |
The government of Turkey has announced the following benefit in kind exemption amounts for 2020.
These amounts will impact employees’ Gross Social Security amounts if the employer provides the respective benefits in kind.
| SGK Istisna Rakamlari | Exemption Amount from SSI | For 2019 Period | For 2020 Period |
|---|---|---|---|
| Çocuk Yardımı İstisnası / SGK | SSI Child Allowance Exemption | TRY 51.17 | TRY 58.86 |
| Aile Yardımı İstisnası / SGK | SST Family Allowance Exemption | TRY 255.84 | TRY 294.30 |
| Yemek Yardımı İstisnası / SGK | SSI Meal Allowance Exemption | TRY 5.12 | TRY 5.89 |
| Bireysel emekliliktözel sağlık sişortası primi istisnası/prime esas kazanç | Private Ins Exemption Amounts for SSI Base | TRY 767.52 | TRY 882.90 |
In accordance with the amended amounts, the social security contributions for an employee and employer will be calculated as summarized below:
| Basic Salary | 3,500.00 | Legal limits |
|---|---|---|
| Health insurance allowance | 550.00 | Monthly SSI limit 882.90 TRY |
| Meal allowance | 600.00 | Daily SSI limit 5.89TRY |
| Child allowance | 58.86 | Monthly SSI limit 58.86 |
| Family allowance | 294.30 | Monthly SSI limit 294.30 TRY |
| Total Gross | 5,003.16 | |
| SSI Exemption amount | 1,503.16 | |
| Social security base | 3,500.00 TRY | |
| SSI Employee part (%14) | 490.00 | |
| SSI Unemployment part (%1) | 35.00 | |
| Pre-Tax Deduction | 525.00 | |
| Total income tax exemption | 1,427.30 | |
| Health INS Tax exemption | 550.00 | %15 limit Control & control minimum base wage for tax exemption |
| Meal Allowance tax exemption | 546.48 | Daily tax limit 24.84 TRY |
| Child Allowance tax exemption | 36.52 | Monthly limit 36.52 TRY |
| Family Allowance tax exemption | 294.30 | Monthly limit 311.68TRY |
| Income tax gross | 3,050.86 TRY | |
| Cumulation tax amount | 3,050.86 | |
| Income tax deduction (15%) | 457.63 | |
| Stamp tax base | 5,003.15 TRY | |
| Stamp tax (%0.759) | 37.97 | |
| Deductions | ||
| Meal Allowance deduction | 546.48 | |
| Health INS deduction | 380.83 | |
| Total deductions | 927.31 TRY | |
| Net Salary | 3,055.25 | |
| Minimum living allowance | 220.73 | |
| Net salary payment amount | 3,275.98 TRY | |
| SSI Employer part (%20.50) | 771.50 | |
| SSI Unemployment part (%2) | 70.00 | |
| Employer cost | 5,790.66 TRY |
The amended rates will apply to all wages and salaries earned after January 1, 2020.