03/10/2023

How to Create a Salary Advance Payroll in Turkey ?

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Workers may need urgent cash before salary due for various reasons. In such a case, the employee can request a preliminary payment from the employer before the salary payment date, without completing the salary progress for the month. This payment is called salary advance in Turkey.

There is no regulation specified in the Labor Law No. 4857 regarding the employer’s obligation regarding salary advance in Turkey. Since there is no regulation in the Labor Law, at this point, as stated in the Code of Obligations, salary advances can be paid provided that the employee has a compelling need and the employer is financially able to pay. Apart from this, if there is no mandatory condition, salary advance payment can be made at the initiative of the employer.

Salary advance in Turkey is deducted from the worker’s net wage for the relevant month of employment. The amount paid as a salary advance is applied as a deduction on the remaining net wage after deducting legal deductions from the person’s gross wage. Accordingly, the amount paid for the advance must be added to the employee’s payroll as a deduction item. Since the deduction amounts added to the payroll are added as a net amount, not as a gross amount, no separate legal deduction is applied to the salary advance deduction item, since all legal deductions are already made from the person’s wage and shown as a net amount in the payroll. In this way, the advance deduction is deducted from the person’s wage calculated at the end of the month and the worker’s net earnings for the relevant month are paid.

Sometimes, when a worker requests an advance that is more than his salary or cannot meet his needs after the deduction, he can request that the salary advance be deducted from his salary in installments. However, this practice is entirely at the discretion of the employer. If a salary advance deduction will be made in installments in Turkey, the amount the person will receive should be divided into how many months it will be deducted from his salary, and the agreed monthly installment amount should be applied as a deduction on the net salary.

For example; If the worker requested a salary advance of 30,000 TL and a deduction in 3 installments was discussed, 10,000 TL should be shown as a deduction from the calculated net wage of the worker in the payroll for 3 months.

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.