Jan 12, 2021 2 min read

Turkey Payroll Outsourcing Alert (2021 Tax Parameters)

Turkey – SSI and Tax Payroll Parameters for 2021.

Effective from 1st of January 2021, the government of Turkey has increased the Social Security Minimum Wage Amount to 3,577.50 TRY Gross and 2,825.90 TRY Net for single employees. The monthly SSI Ceiling Amount has increased to a gross amount of 26,831.40 TRY.

Please find the previous and new amounts under the below table,

 

In accordance with the amended minimum amounts, the social security contributions for employees and employers will be calculated as summarized below:

Minimum Living Allowance Amounts (AGI) for 2021

The Turkish government has announced the following Minimum Living Allowances (AGI) for 2021.

These amounts will be directly added to employees’ salaries based on their marital statuses.

Minimul Living Allowance AmountsAsgari Gecim Indirimi TutarlariPeriod 2020Period 2021
SingleBekarTRY220.73TRY268.31
Married + (wife/husband working)Evli eşi çalışanTRY220.73TRY268.31
Marrled + (wife/husband working) + 1 childEVli eşi çalışan 1 çocukTRY 253.83TRY 308.56
Married + (wife/husband working) + 2 childEvli eşi çalışan 2 çocukTRY 286.94TRY 348.81
Marrled + (wife/husband working) + 3 childEvli eşi çalışan 3 çocukTRY 331.09TRY 402.47
Married + (wife/husband working) + 4 childEvli eşi çalışan 4 çocukTRY 353.16TRY 429.30
Married + (wife/husband working) + 5 childEvli eşi çalışan 5 çocukTRY 375.23TRY 456.13
Married + (wife/husband not working)Evli eşiçalşmayanTRY 264.87TRY 321.98
Married + (wife/husband not working) + 1 childEvli eşi çalşmayan 1 çocukTRY 297.98TRY 362.22
Married + (wife/husband not working) + 2 childEvli eşi çalşmayan 2 çocukTRY 331.09TRY 402.47
Married + (wife/husband not working) + 3 childEvli eşi çalşmayan 3 çocukTRY 375.23TRY 456.13
Married + (wife/husband not working) + 4 childEvli eşi çalşmayan 4 çocukTRY 375.23TRY 456.13
Married + (wife/husband not working) + 5 childEvli eşi çalşmayan 5 çocukTRY 375.23TRY 4S6.13

 

Exemption Amounts from Social Security Base Amount for 2021

The government of Turkey has announced the following benefit in kind exemption amounts for 2021.

These amounts will impact employees’ Gross Social Security amounts if the employer provides the respective benefits in kind.

SSI Amounts EN VersionSSI Amounts TR VersionPeriod 2020Period 2021
SSI Child Allowance ExemptionÇocuk Yardımı İstisnası / SGKTRY 58.86TRY 71.55
SSI Family Allowance ExemptionAile Yardımı İstisnası / SGKTRY 294.30TRY 357.75
SSI Meal Allowance Exemption (cash payment)Yemek Yardımı İstisnası / SGKTRY 5.89TRY 7.16
Private Ins * Pension ER Exemption Amounts for SSI BaseOzel sağlık sigortası ve Isveren BES primi İistisnası/prime esas kazaaçTRY 882.90TRY 1,073.25

Income Tax Brackets and Income Tax Exemptions

Tax Limits and Exemption Amounts EN VersionTax Limits and Exemption Amounts TR VersionPeriod 2020Period 2021
%15 Tax Amount%15 Vergi DilimiTRY 0.00-22,000.00TRY 0.00 - 24,000.00
%20 Tax Amount%20 Vergi DilimiTRY 22.000.01-49,000.00TRY 24,000.01-53,000.00
%27 Tax Amount%27 Vergi DilimiTRY 49,000.01-180,000.00TRY 53,000.01-190,000.00
%35 Tax Amount%35 Vergi DilimiTRY 180,000.01-600,000.00TRY 190,000.01-650,000.00
%40 Tax Amount%40 Vergi DilimiTRY 600,000.01 +TRY 650,000.01 +
İncome Tax Meal Allowance ExemptionYemek Yardımı İstisnası / GVTRY 24.84TRY 25.00
Transportation (Card) Allowance Tax ExemptionYol Yardımı (Kart) İstisnası / GVTRY 12.00TRY 13.00
Disability Exemption for 1. Degree1.Derece Sakatlık İndirimiTRY 1,400.00TRY 1,500.00
Disability Exemption for 2. Degree2.Derece Sakatlık İndirimiTRY 790.00TRY 860.00
Disability Exemption for 3. Degree3.Derece Sakatlık İndirimiTRY 350.00TRY 380.00

 

The amended rates will apply to all wages and salaries earned after January 1, 2021.

Mercans’ Turkey Payroll Outsourcing Solutions

While Mercans’ Turkey Payroll Outsourcing alerts will allow you to stay on top of the latest development in Turkey’s payroll regulations, you should still get in touch with Mercans’ Turkey payroll outsourcing, compliance, PEO/GEO, and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Turkey to Mercans and our Turkey payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the Turkey regulations.

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