Council of State Decision Regarding SSI's Meal Card Regulations

By the decision of the Council of State 10th Chamber numbered 2023/170 E. and 2024/1853 K., paragraph 7, subparagraph (a) of Article 97 of the Social Insurance Transactions Regulation and the relevant provisions of the Circular on "Meal Allowance" published based on this article have been annulled. Upon appeal of the decision, the annulment decision was upheld and finalized by the decision of the Council of State Administrative Case Chambers Assembly dated March 6, 2025, numbered 2024/2809 E. and 2025/539 K.

In the reasoning of the decision rendered by the Council of State, the nature of meal allowances provided by employers to employees through meal cards, checks or coupons and their impact on Social Security base amount have been comprehensively evaluated.

The main points highlighted in the decision and that should be taken into consideration in practice are summarized below:

The Definition of In-Kind Meal Allowance Has Been Interpreted Broadly

It has been stated that meal allowance is not limited only to services consumed in places such as restaurants or eateries, but that the purchase of food products for nutritional purposes is also within this scope. Therefore, it has been emphasized that the use of meal cards not only in restaurants but also in places that sell food will not eliminate the nature of benefit as an in kind.

Meal Cards Are Considered as Benefit In-Kind

If the meal card can be used at member establishments such as restaurants that provide meal services and at other member establishments for food substance expenses for nutritional purposes, cannot be withdrawn as cash, cannot be used anywhere like a bank card, invoiced transactions are conducted and it is of a controllable nature, in this case the allowance made with the card has been considered in-kind benefit. Such cards have been determined to be not a payment instrument that substitutes for cash but directly intended for meal/food provision.

Conclusion and Evaluation

As is known, in-kind meal allowances provided to employees are not included in the social security base amount pursuant to Article 80 of Law No. 5510. As also emphasized in the Council of State's decision, in cases where meal cards meet certain conditions, the amounts loaded onto these cards should not be considered part of the social security base amount.

Following the decision of the 10th Chamber of the Council of State, paragraph (a) of Article 97(7) of the Social Insurance Transactions Regulation was amended, and the latest Circular No. 2024/17 dated 31 December 2024 was published.

According to this Circular, if the meal card/voucher/coupon cannot be used in cash or for any other purpose that is equivalent to cash — and is solely used for the payment of meal costs — the amount loaded onto the meal card/voucher/coupon shall not be included in the social security base amount. The Circular clearly states that the exemption shall apply only when the card is used strictly for "meal payments." This principle is reiterated in the examples provided within the Circular. However, in cases where the card/voucher/coupon can be used in a manner equivalent to cash or for purposes other than meal payment, the daily amount of TRY 158.00 shall remain exempt from social security base amount, but any amount exceeding this threshold will be subject to social security contributions.

In conclusion, the employer's practice of providing meal allowance through tools such as meal cards/vouchers/coupons must be interpreted as an in-kind benefit in light of the Council of State's decision. Accordingly, it is expected that the issue of whether the loaded amounts on these cards will be excluded from social security base amount calculations — provided that they meet the specified criteria — will be clarified. A regulatory update from the Social Security Institution on this matter is anticipated in the near future.

In order to avoid potential administrative fines or the cancellation of social security incentives, it is crucial that employers closely follow the forthcoming regulations to be issued by the Social Security Institution and take action accordingly.

You can access the relevant Council of State decision here. (In Turkish)

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