Sözer ÇİZMECİ
Human Resources Manager
s.sozercizmeci@gmail.com
Following fixed parameters of 2015 represents basic payroll accounting in Turkey. There might be other benefits and allowances applicable to the workers. Below calculations excludes daily food, family and children allowances and other exemptions. Please consult to your accountant for detailed information. The following information is for informational purposes only.
PAYROLL PARAMETERS FOR 2015
I- Gross Salary:
Gross Salary refers to amount of salary which is earned by employees according to Turkish Labor Law.
- Gross Salary = Net Salary + Total Deductions (Social Security Premium Employee’s Share (including Unemployment Insurance) + Income Tax + Stamp Tax)
II- Net Salary:
It is the amount of salary actually received by the employees.
- Net Salary = Gross Salary – Total Deductions
III- Employer’s Cost:
In addition to the gross salary, employer must pay the employer’s share of social security and unemployment insurance premiums.
- Total Cost of Employee to Employer = Gross Salary + Social Security Premium Employer’s Allocation (including Unemployment Insurance)
IV-Social Security Premium and Unemployment Insurance:
Total social security premium is 37.5% (including unemployment insurance) of Earning Subject to Premium. 15% of total is deducted from the gross salary as employee’s allocation and 22.5% of Earning Subject to Premium is calculated additionally as the employer’s allocation. (Effective from 01/09/2013 Short term insurance branches premium rate is determined as 2% of earning subject to premium regardless of the gravity of the danger of the work.)
| Insurance Branches | Employee’s Allocation (%) | Employer’s Allocation (%) | Total Allocation (%) |
| Short Term Insurance Branch Premium | – | 2 | 2 |
| Invalidity, Old Age and Death Insurance Premium | 9 | 11 | 20 |
| General Health Insurance | 5 | 7,5 | 12,5 |
| Unemployment Insurance | 1 | 2 | 3 |
| Total | 15 | 22,5 | 37,5 |
| SOCIAL SECURITY BASE AND CEILING | MONTHLY (TL) |
| BASE (BETWEEN 01.01.2015 – 30.06.2015) | 1201,50 |
| CEILING (BETWEEN 01.01.2015 – 30.06.2015) – BASE (x) 6,5 | 7809,90 |
| BASE (BETWEEN 01.07.2015 – 31.12.2015) | 1273,50 |
| CEILING (BETWEEN 01.07.2015 – 31.12.2015) – BASE (x) 6,5 | 8277,90 |
V- Income Tax:
Employee’s Wage Income is subject to income tax and employer is responsible to deduct, and pay to tax office on behalf of employee.
- Income Tax Base (Taxable Income) = Gross Salary – Social Security Premium (Employee’s Share)
- Income Tax = Taxable income * Income Tax Rate (%)
| Income Tax (Cumulative) (Wage Income)(2015) | Rates |
| Up to 12 000 TL | %15 |
| Between 12 000 and 29 000 TL (For the 12 000 TL of the total amount, income tax is 1.800 TL) In excess | %20 |
| Between 29 000 and 106.000 TL* (For the 29 000 TL of the total amount, income tax is 5200 TL) In excess | %27 |
| Over 106.000 TL (For the 106 000 TL of the total amount, income tax is 25 990 TL) In excess | %35 |
*106 000 TL limit is applicable only for the taxation of wage income. Please consider that, for other sources of income, 2015 taxation limit is 66 000 TL .
VI- Stamp Tax: (2015)
Stamp tax is based on the gross salary. The rate of tax is 0,00759
- Stamp Tax = Gross Salary * Stamp Tax Rate
VII- Minimum Living Allowance (MLA)
Effective from January 1, 2008, a tax-free minimum living allowance is available for wage earners. Income tax payable is calculated by deducting MLA from the income tax.
Calculation is made on the basis of minimum wage regardless of the salary of employee. In calculation of the minimum living allowance, the marital status and the family composition of the employee is taken into account.
Calculation: 50% for the taxpayer, 10% for the spouse provided who is unemployed, 7.5% each for the first two dependent children, and 5% each for the following dependant children.
Calculation on the basis of Minimum Wage
| Minimum Living Allowance | 2015 |
| Single | 90,11 TL |
| Married, Employed Spouse | 90,11 TL |
| Married, Employed Spouse, One Child | 103,63 TL |
| Married, Employed Spouse , Two Children | 117,15 TL |
| Married, Employed Spouse , Three Children | 126.16 TL |
| Married, Employed Spouse , Four Children | 135,17 TL |
| Married, Unemployed Spouse | 108,14 TL |
| Married, Unemployed Spouse , One Child | 121,65 TL |
| Married, Unemployed Spouse , Two Children | 135,17 TL |
| Married, Unemployed Spouse , Three Children | 144,18 TL |
| Married, Unemployed Spouse , Four Children | 153,19 TL |
- Income Tax Payable = Income Tax – Minimum living Allowance
VIII – Disablement Deduction
The employee who lost working capacity at minimum 80 % is regarded as 1st degree disabled, minimum 60 % is 2nd degree disabled, minimum 40 % is 3rd degree disabled worker. In calculating income tax, the following monthly deductions are applicable to the taxable income of the employees (2014).
- For the 1st degree 880 TL
- For the 2nd degree 440 TL
- For the 3rd degree 200 TL
MINIMUM WAGE CALCULATION
MINIMUM WAGE CALCULATION – SINGLE EMPLOYEE WITH NO CHILDIREN*
( PERIOD BETWEEN 01.01.2015 – 30.06.2015)
| Gross salary | 1201,50 TL |
| Social Security Premium Employee’s allocation (14%) | 168,21 TL |
| Unemployment insurance Employee’s allocation (1%) | 12,02 TL |
| Income tax base | 1021,27 TL |
| Income tax (15%) | 153,19 TL |
| Minimum living allowance (Single and no children) |
90,11 TL |
| Income tax payable | 63,08 TL |
| Stamp tax (0,00759) | 9,12 TL |
| Total Deductions (Income tax payable +Stamp Tax + Social Security Premium Employee Allocation +Unemployment Insurance Employee Allocation) | 252,43 TL |
| NET SALARY | 949,07 TL |
TOTAL COST OF EMPLOYEE TO EMPLOYER
| Gross salary | 1201,50 TL |
| Social Security Premium Employer’s allocation (15.5%)* | 186,23TL |
| Unemployment Insurance (2%) | 24,03TL |
| TOTAL COST | 1.411,76 TL |
* Calculation is applicable to single employees with no children. Different Minimum Living Allowance amounts should be considered for other calculations.
*”For the private sector employers who employ insurance holders under item (a) of paragraph one of Article 4 of this Law, the amount corresponding to five points of employer share in the premiums of invalidity, old – age and survivors insurances pursuant to item (a) of paragraph one of this Article shall be covered by the Treasury.” SOCIAL INSURANCE AND UNIVERSAL HEALTH INSURANCE LAW (law no:5510 – Article 8-ı )