According to the 27998389 - 010.06.02.11638 numbered Circular published by the Ministry of Treasury and Finance with the subject 'Financial and Social Rights', the coefficients used to calculate the wage of public officers have been revised to be effective as of 01.01.2021.

Income Tax Exempted Severance Pay

The following value has been calculated taking these coefficients into account and shall be applied for the period between 01.01.2021 – 30.06.2021 maximum severance pay to be exempted from income tax is determined as TRY 7.638.96.

To access the full circular in which these announcements were made, please click here. (Please also be advised that the contents of this circular are in Turkish language.)

Cash wage support and termination ban due to Covid-19 reasons have been extended to March 17, 2021. For further details, you can review our announcement via that link.

In case of a violation of the termination ban, the following sanctions and risks would be encountered:

1. Administrative fine
2. Cancellation of short-term employment allowance and refund of allowances with interest from employers
3. Other possible termination risks

You can find below the details:

Cash wage support and termination ban due to Covid-19 reasons have been extended to March 17, 2021.

The decision was published with the Official Gazette dated 30.12.2020 and numbered 31350.

The related regulations are set forth in the Temporary Article 10 of the Labor Law as below:

"Temporary Article 10 - Regardless of whether this Law is covered or not, any employment or service contract does not comply with the rules of ethics and good faith in paragraph (II) of the first paragraph of Article 25 and other relevant laws, the expiration of fixed-term contracts, the closure of the workplace for any reason and the termination of its activity, all kinds of service purchases made in accordance with the relevant legislation and the termination of the work in construction works, it cannot be terminated by the employer for a period of three months from the effective date of this article.

• Income Tax Exempted Food Allowance
• Income Tax Exempted Commuting Allowance
• Disability Degree Discount
• Income Tax Brackets of 2021
• Stamp Tax Rate