State subsidy for employees in Payroll Turkey

State subsidy for employees in Payroll Turkey

Employee’s contributions to individual retirement insurance are not deductible from personal income tax liability, but the government will provide a state subsidy amounting to 25% of employees paid contributions to the individual retirement insurance account, with a cap of annual gross minimum wage (TRY 24.354 for 2018).

Tax and premium exemption for employers in Payroll Turkey

Employer’s contributions to individual retirement insurance are tax deductible up to 15% of the monthly wage with a cap of annual gross minimum wage (TRY 24.354 for 2018).

Employer’s contribution to individual retirement insurance and private health insurances shall be deducted from earnings subject to premium of up to 30% of monthly gross minimum wage.

 

Payroll Turkey and Private Health Insurance

 

The advantages

 

Althoough state social security (SSI) covers healthcare services, some turkish people and most of the foreign employers and employees choose to also have private cover due to shorter waiting lists and foreign language speaking staff of private hospitals.

 

Tax/Premium exemption

 

The premiums paid to private health insurance institutions are deductible from the income tax liability, up to 15% of the monthly wage with a cap of annual gross minimum wage (TRY 608,25 for 2018).

 

Protection of personal data

 

All natural and legal persons, collecting, processing and transferring personal data are deemed as a data controller and will be registered in a data controller registry before starting personal data processing with soe exceptions determined by the personal data protection board.

 

For detailed information please visit our website. Since 2005 we are providing Payroll Turkey solutions for companies which want to develop their activities in Turkey/Istanbul. Don’t hesitate to be in touch with our team based in Turkey regarding your projects in Turkey. As an umbrella Turkey company, we are providing also HR Recruitment Turkey solutions.

Comments are closed.