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08April2015

Regulation on the Social Security Insurance of Domestic Service Workers

cott-group-semsiye
 A communiqué regarding the social security insurance of domestic service workers within the scope of supplementary article 8 of the law on Social Security enumerated 5510 has been published and is in effect as of 01/04/2015. Domestic service work comprises domestic help such as cleaning, cooking, child as well as elderly care.


Domestic service workers are now categorized according to the days worked in a calendar month, threshold being 10 days. Accordingly, employers who employ domestic service workers 10 days or more are obliged to contribute the full SSI amount.

 

a) Mandatory Full Insurance for Domestic Workers employed 10 days or more in a calendar month:

All such workers are within the scope of Law no. 5510 and are considered to be insured in the 4/a category. The SSI declaration of these workers shall be done by the real person employer. Form can be downloaded here. The declaration shall be done no later than the end of the month during which domestic service was rendered. In the event of belated / non- declaration, real persons will be subject to an administrative fine equivalent to monthly minimum wage.
 

b) Mandatory Workplace Health and Safety Insurance for Domestic workers employed less than 10 days:

 
In this case the real person employer will have to pay the mandatory 2% workplace health and safety insurance premium calculated based on daily minimum wage. The real person employers also have the duty to make monthly SSI declarations using the official form (available here) no later than the end of the month during which domestic service was rendered.

Employers are not required to contribute the general health insurance Premium for domestic service workers, working less than 10 days. Workers in this category can apply to be covered from the general health insurance by paying a monthly Premium of 32.5% of monthly minimum wage.

It is also noted that for workers to benefit from coverage relating to work-related accidents and sickness, they are required to have been registered as a domestic worker at least 10 days prior to the date of the accident, have insured status at the time of the accident / sickness, and have no outstanding premium debts.
 
Consequently, the new regulation has categorized domestic workers into two based on their work days:
  • Domestic service workers working for 10 days or more in a household and employed by a real person shall be under mandatory SSI coverage and classified as a 4/a employee within the scope of the law enumerated 5510.

  • Domestic service workers working for less than 10 days in a household and employed by a real person shall be under mandatory workplace health and safety coverage (2% of daily minimum wage – paid by the real person employer).
 
Click here for the text of the Communiqué (in Turkish).
 

INCOME TAX ON DOMESTIC SERVİCE WAGES

 
Department of Revenue's communiqué, published on 07/04/2015, indicate that wages received due to domestic service employment are exempt from income tax in accordance with article 23.1(6)of the Income Tax Law.

Exemption is applicable in cases where

- Domestic service work is undertaken by individuals ( i.e., real persons and not by professional cleaning companies)

- Performed at a non-commercial establishment (i.e., households or residential apartment buildings)

- Service provided shall be related to cleaning, gardening, child or elderly care (teaching and private lessons are excluded).
 
Click here to view the Revenue Department's communiqué (available in Turkish).
 
 

Written by Selma Kıy, Posted in Social Security Law and Legislation, Taxation Law

About The Author

Selma Kıy

Certified Public Accountant - SMMM
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