The Social Security Institution (SSI) in Turkey, known as Sosyal Güvenlik Kurumu (SGK) in Turkish, is the governmental agency responsible for managing and administering social security programs and benefits in the country. It operates under the Ministry of Family, Labor, and Social Services.
The primary objective of the SSI is to ensure social security coverage and protection for individuals and their families in various areas, including health insurance, retirement, disability, unemployment, and workplace injury or illness. It aims to provide financial support and assistance to those in need, promoting social welfare and stability.
One of the key components of the social security system in Turkey is the Social Security Income (SSI) program. This program encompasses various benefits and schemes designed to provide income support and financial assistance to eligible individuals and families.
The SSI program offers coverage for retirement, disability, and survivorship. It includes contributions from both employees and employers, with the contributions being calculated based on the individual’s income. These contributions go towards building up a person’s social security account, which determines the amount of benefits they will receive in the future.
Retirement benefits under the SSI program are provided to individuals who have reached the eligible age and have accumulated the required number of contributions. The amount of the retirement benefit is based on factors such as the individual’s average income, the duration of contributions, and the prevailing rules and regulations.
Disability benefits are available to individuals who have suffered from a disability that prevents them from working and earning a livelihood. The disability benefit amount is determined based on the individual’s disability level and their previous contributions.
Survivorship benefits are provided to the dependents of deceased individuals who were covered under the SSI program. This includes benefits for the spouse, children, and other eligible dependents.
In addition to these core benefits, the SSI program also includes other forms of social assistance, such as healthcare coverage, unemployment benefits, and maternity benefits.
It is important to note that the specifics of the SSI program, including eligibility criteria, benefit amounts, and contribution rates, are subject to change and are governed by laws, regulations, and policies set by the Turkish government. It is recommended to consult official sources or contact the SSI directly for the most up-to-date and accurate information regarding social security income in Turkey.
For the period spanning from July 1, 2023, to December 31, 2023, an important update has been made regarding the amount of insurance premium exemption for meals. According to the regulations outlined in the seventh paragraph of the ninety-seventh article of the Social Insurance Transactions Regulation, the specific amount of earnings subject to insurance premium that will be exempted from meal expenses has been determined.
The calculation is as follows: 447.15 Turkish Liras multiplied by 23.65% equals 105.75 Turkish Liras (Daily Exemption Amount).
To provide a further explanation, let’s examine the basis of the premium exclusion from the meal fee. As per the seventh paragraph of Article 97 of the Insurance Transactions Regulation, if employers do not provide meals within the workplace or its adjacent buildings, a certain portion of the payments made to insured individuals or third parties for meal costs should not be included in the earnings subject to premium. This provision came into effect on December 1, 2022, replacing the previous exception rate of 6%.
Considering the announcement of the new minimum wage, the insurance premium exemption amount has been recalculated accordingly. In light of the updated minimum wage, the earnings subject to insurance premium exemption for meal expenses in the period from July 1, 2023, to December 31, 2023, will be applied as 447.15 Turkish Liras multiplied by 23.65%, resulting in a daily exception amount of 105.75 Turkish Liras.
It is important to note that the calculation for the exemption from the meal fee differs in tax applications. Therefore, it is crucial not to confuse this matter during relevant processes and implementations.
Azkan Group can support you in your Employer of Record (EOR) and payroll requests (also called Umbrella Company) in Turkey. We can manage your HR requests even if you don’t have a legal entity in Turkey.