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28December2020

2021 Minimum Wage & the Minimum Subsistence Allowance Rates (MSA)

2021 Minimum Wage & the Minimum Subsistence Allowance Rates (MSA)

a. Minimum Wage

In The press release dated December 28, 2020 the Ministry of Labor along with the Minimum Wage Determination Committee have announced the minimum wage to be effective for the year of 2021 as shown in the table below.

TERM

GROSS

NET

2021 Year

3.577,50.-TL

2.825,90.-TL

b. Monthly SSI Base and Ceiling Parameters

As per to the Article 82 of the 5510 numbered SSI Law, the SSI base and the SSI ceiling are determined by taking the minimum wage into account. The SSI ceiling is calculated as the 7,5 times of the minimum wage. The below table shows the legal parameters in regards for 2021.

SSI

Monthly SSI Base

Monthly SSI Ceiling

2021

3.577,50.-TL

26.831,40.-TL

c. The amount to be taken into account for discount calculation purposes related to the "Minimum Subsistence Allowance", which will be effective as of the start of 2021

Minimum Wage * 12 = Annual Amount of the Minimum Wage

3.577,50 * 12 = 42.930,00.-TL

In order to calculate the MSA amount, the rates determined in accordance with the employees’ marital statuses are applied to the amount stated above.

One twelfth (1/12) of the income tax amount calculated over the Annual Minimum Wage Level is discounted from the employees’ income tax payable on monthly basis.

Employees Marital Status

Monthly discount Amount for 2021 (TRY)

Single

268.31

Married-spouse not working

321.98

Married-spouse not working 1 child

362.22

Married-spouse not working 2 child

402.47

Married-spouse not working 3 child

456.13

Married-spouse not working 4 child

456.13

Married-spouse not working 5 child

456.13

Married and spouse working

268.31

Married-spouse working 1 child

308.56

Married-spouse working 2 child

348.81

Married-spouse working 3 child

402.47

Married-spouse working 4 child

429.30

Married-spouse working 5 child

456.13

Written by Erdoğdu Onur Erol, Posted in Social Security Law and Legislation, Taxation Law

About The Author

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