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Jan 21, 2020 4 min read

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.

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Social Security Parameters in Turkey

Turkey payroll outsourcing leader issues a statutory alert for Turkey.

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