Turkey Payroll Outsourcing Alert (2021 Tax Parameters)
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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 Amounts | Asgari Gecim Indirimi Tutarlari | Period 2020 | Period 2021 |
|---|---|---|---|
| Single | Bekar | TRY220.73 | TRY268.31 |
| Married + (wife/husband working) | Evli eşi çalışan | TRY220.73 | TRY268.31 |
| Marrled + (wife/husband working) + 1 child | EVli eşi çalışan 1 çocuk | TRY 253.83 | TRY 308.56 |
| Married + (wife/husband working) + 2 child | Evli eşi çalışan 2 çocuk | TRY 286.94 | TRY 348.81 |
| Marrled + (wife/husband working) + 3 child | Evli eşi çalışan 3 çocuk | TRY 331.09 | TRY 402.47 |
| Married + (wife/husband working) + 4 child | Evli eşi çalışan 4 çocuk | TRY 353.16 | TRY 429.30 |
| Married + (wife/husband working) + 5 child | Evli eşi çalışan 5 çocuk | TRY 375.23 | TRY 456.13 |
| Married + (wife/husband not working) | Evli eşiçalşmayan | TRY 264.87 | TRY 321.98 |
| Married + (wife/husband not working) + 1 child | Evli eşi çalşmayan 1 çocuk | TRY 297.98 | TRY 362.22 |
| Married + (wife/husband not working) + 2 child | Evli eşi çalşmayan 2 çocuk | TRY 331.09 | TRY 402.47 |
| Married + (wife/husband not working) + 3 child | Evli eşi çalşmayan 3 çocuk | TRY 375.23 | TRY 456.13 |
| Married + (wife/husband not working) + 4 child | Evli eşi çalşmayan 4 çocuk | TRY 375.23 | TRY 456.13 |
| Married + (wife/husband not working) + 5 child | Evli eşi çalşmayan 5 çocuk | TRY 375.23 | TRY 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 Version | SSI Amounts TR Version | Period 2020 | Period 2021 |
|---|---|---|---|
| SSI Child Allowance Exemption | Çocuk Yardımı İstisnası / SGK | TRY 58.86 | TRY 71.55 |
| SSI Family Allowance Exemption | Aile Yardımı İstisnası / SGK | TRY 294.30 | TRY 357.75 |
| SSI Meal Allowance Exemption (cash payment) | Yemek Yardımı İstisnası / SGK | TRY 5.89 | TRY 7.16 |
| Private Ins * Pension ER Exemption Amounts for SSI Base | Ozel sağlık sigortası ve Isveren BES primi İistisnası/prime esas kazaaç | TRY 882.90 | TRY 1,073.25 |
Income Tax Brackets and Income Tax Exemptions
| Tax Limits and Exemption Amounts EN Version | Tax Limits and Exemption Amounts TR Version | Period 2020 | Period 2021 |
|---|---|---|---|
| %15 Tax Amount | %15 Vergi Dilimi | TRY 0.00-22,000.00 | TRY 0.00 - 24,000.00 |
| %20 Tax Amount | %20 Vergi Dilimi | TRY 22.000.01-49,000.00 | TRY 24,000.01-53,000.00 |
| %27 Tax Amount | %27 Vergi Dilimi | TRY 49,000.01-180,000.00 | TRY 53,000.01-190,000.00 |
| %35 Tax Amount | %35 Vergi Dilimi | TRY 180,000.01-600,000.00 | TRY 190,000.01-650,000.00 |
| %40 Tax Amount | %40 Vergi Dilimi | TRY 600,000.01 + | TRY 650,000.01 + |
| İncome Tax Meal Allowance Exemption | Yemek Yardımı İstisnası / GV | TRY 24.84 | TRY 25.00 |
| Transportation (Card) Allowance Tax Exemption | Yol Yardımı (Kart) İstisnası / GV | TRY 12.00 | TRY 13.00 |
| Disability Exemption for 1. Degree | 1.Derece Sakatlık İndirimi | TRY 1,400.00 | TRY 1,500.00 |
| Disability Exemption for 2. Degree | 2.Derece Sakatlık İndirimi | TRY 790.00 | TRY 860.00 |
| Disability Exemption for 3. Degree | 3.Derece Sakatlık İndirimi | TRY 350.00 | TRY 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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