2016 Minimum Wage & the Minimum Subsistence Allowance Rates (MSA)

a. Minimum Wage

The decision of the Minimum Wage Determination Commission related to the minimum wage amount applicable in 2016 has been published in the Official Gazette dated 31 December 2015 and numbered 29579.

You can access the complete version of the Official Gazette from this link.

b. Monthly SSI Floor and Ceiling Amounts

According to the 82nd Article of the General Social Security Law numbered 5510, the lower limit of daily earning subject to premiums is one thirtieth of the minimum wage (1/30), and the upper limit is 6,5 times the minimum wage. In accordance with this information, the monthly floor and ceiling levels for 2016 are as stated below.

c. The Amount to be taken into account for discount calculation purposes related to the ‘’Minimum Subsistance Allowance’’, which will be effective as of the start of 2016.

Minimum Wage * 12 = Annual Amount of the Minimum Wage

1.647 * 12 = 19.764.-TRY

In order to calculate the Minimum Subsistence Allowance amounts, 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.

d. Income Tax Exempted Severance Pay

According to the circular numbered 27998389-010-06-02-82 released by the General Directorate of Budget and Fiscal Control on 04.01.2016 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective 01.01.2016.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.01.2016 – 30.06.2016;

1. Maximum severance pay to be exempted from income tax is 4.092,53.- TL,

e. Income Tax Exempted Child Support

According to the circular numbered 27998389-010-06-02-82 released by the General Directorate of Budget and Fiscal Control on 04.01.2016 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective 01.01.2016.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.01.2016– 30.06.2016;

1. Monthly child support to be exempted from income tax is;
   • For children 0-6 years of age – 44,41.- TL
   • For children over 6 years of age – 22,20.- TL.

To access the full circular in which these announcements were made, please click herePlease also be advised that the contents of this circular is in Turkish languge