The statutory deductions applicable in a standard Turkish payroll are social security premium, income tax, and stamp tax. Also, the salaries generated from liaison offices in Türkiye are exempt from income tax per the article 34/14 of Income Tax Law and these are only subject to social security.

Also, as of 2022, an income tax exemption amount up to the tax amount calculated over minimum wage would be applicable for all wages.

Social Security Premium

Social Security Premium are calculated over wages monthly and are paid jointly by the employee and the employer. The contribution rates are as follows:

a. Minimum Wage

In The press release dated July 01, 2022, the Ministry of Labor along with the Minimum Wage Determination Committee have announced the minimum wage to be effective as of July 01, 2022, as shown in the table below.

The Social Security Institution published a General Letter with regards to the employer representation.

Per that regulation, SSI will assign employer representatives per the employee count of the companies to fasten the SSI processes.

The employer representative implementation will primarily start in Izmir and Gaziantep provinces as of 16.05.2022. And, per the results & feedbacks, this would be applicable in all provinces in the future.

The Social Security Institution published a General Letter with regards to the inspections on the retirement procedures due to foreign service debt per the Law No. 3201 (In Turkish.)

Per that regulation, the retirement / pension payments made due to the foreign service debt system, would be cancelled if the individuals start to work in foreign countries or receives a social allowance due from their residence.

The individuals who retired due to the the foreign service debt system per the Law No: 3210, would need to declare their statuses regarding their work statuses or social benefit statuses within 3 months if they stay more than 6 months in the foreing countries.