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Social Security Parameters in Turkey

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 ADIAPPLICATION NAMEFor 2019 PeriodFor 2020 Period
Gunluk Prime Esas Kazanc/SGK / AltSınırSS Minimum Base Amount DailyTRY 85.28TRY 98.10
Aylık Prime Esas Kazanc / SGK / Alt SınırSS Minimum Base Amount MonthlyTRY 2,558.40TRY 2,943.00
Gunluk Prime Esas Kazanc /SGK /ÜstSınırSS Ceiling Amount Monthiy DailyTRY 639.60TRY 735.75
Aylık Prime Esas Kazanc / SGK / Üst SınırSS Ceiling Amount MonthlyTRY 19,188.00TRY 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 UcretSS Minimum Base Wage2,943.00
SGK Isci Payi (%14)SSI Employee Part (%14)412.02
SGK Isci Issizlik Payi (%1)SSI Ünemployment Employce (%1)29.43
Gelir vergisi MatrahiIncome Tax Gross2,501.55
Gelir vergisi Kesintisi (%15)Income Tax Deduction (%15)375.23
Damga Vergisi (%0.759)Stamp Tax (%0.759)22.34
Net Asgari UcretNet Minium Base Salary2,103.98
Asgari Gecim Indirimi (Bekar)Minimum Living Allowance (Single EE)220.73
Odenecek Net Asgari UcretNet Salary Payment Amount2,324.71
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 Employer147.15
Isveren MaliyetiEmployer Cost3,458.03

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 AmountsFor 2019 PeriodFor 2020 Period
BekarSingleTRY 191.88TRY 220.73
Evli eşi çalışanMarried + (wife/husband working)TRY 191.88TRY 220.73
EVli eşi çalışan 1 çocukMarrled + (wife/husband working) + 1 childTRY 220.66TRY 253.83
Evli eşi çalışan 2 çocukMarried + (wife/husband working) + 2 childTRY 249.44TRY 286.94
Evli eşi çalışan 3 çocukMarrled + (wife/husband working) + 3 childTRY 287.82TRY 331.09
Evli eşi çalışan 4 çocukMarried + (wife/husband working) + 4 childTRY 307.01TRY 353.16
Evli eşi çalışan 5 çocukMarried + (wife/husband working) + 5 childTRY 326.20TRY 375.23
Evli eşiçalşmayanMarried + (wife/husband not working)TRY 230.26TRY 264.87
Evli eşi çalşmayan 1 çocukMarried + (wife/husband not working) + 1 childTRY 259.04TRY 297.98
Evli eşi çalşmayan 2 çocukMarried + (wife/husband not working) + 2 childTRY 287.82TRY 331.09
Evli eşi çalşmayan 3 çocukMarried + (wife/husband not working) + 3 childTRY 326.20TRY 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 RakamlariExemption Amount from SSIFor 2019 PeriodFor 2020 Period
Çocuk Yardımı İstisnası / SGKSSI Child Allowance ExemptionTRY 51.17TRY 58.86
Aile Yardımı İstisnası / SGKSST Family Allowance ExemptionTRY 255.84TRY 294.30
Yemek Yardımı İstisnası / SGKSSI Meal Allowance ExemptionTRY 5.12TRY 5.89
Bireysel emekliliktözel sağlık sişortası primi istisnası/prime esas kazançPrivate Ins Exemption Amounts for SSI BaseTRY 767.52TRY 882.90

In accordance with the amended amounts, the social security contributions for an employee and employer will be calculated as summarized below:

Basic Salary3,500.00Legal limits
Health insurance allowance 550.00Monthly SSI limit 882.90 TRY
Meal allowance 600.00Daily SSI limit 5.89TRY
Child allowance 58.86Monthly SSI limit 58.86
Family allowance 294.30Monthly SSI limit 294.30 TRY
Total Gross5,003.16
SSI Exemption amount1,503.16
Social security base3,500.00 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 546.48Daily tax limit 24.84 TRY
Child Allowance tax exemption 36.52Monthly limit 36.52 TRY
Family Allowance tax exemption 294.30Monthly limit 311.68TRY
Income tax gross3,050.86 TRY
Cumulation tax amount3,050.86
Income tax deduction (15%)457.63
Stamp tax base5,003.15 TRY
Stamp tax (%0.759)37.97
Deductions
Meal Allowance deduction546.48
Health INS deduction380.83
Total deductions927.31 TRY
Net Salary3,055.25
Minimum living allowance 220.73
Net salary payment amount3,275.98 TRY
SSI Employer part (%20.50)771.50
SSI Unemployment part (%2)70.00
Employer cost5,790.66 TRY

The amended rates will apply to all wages and salaries earned after January 1, 2020.

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