In Turkey, it is mandatory to register the employee for a private pension scheme equal to 3% of their salary.
After one month of employment, the employee can opt out.
The Turkish government additionally contributes 25% towards private pension contributions (subject to a maximum).
An employee is not entitled to sickness pay for the first two days of illness. However, it is common for employers to voluntarily offer payment to support their employees during sick leave. Following this, from the third day of leave, the social security system (SSI) will cover the remaining sickness for any documented illness, provided that the employee has paid a minimum of 90 days of short-term insurance premium in the previous year. This remuneration can take up to two months to receive, therefore it common for an employer to continue to pay their employee during sickness leave and be refunded once the employee has received the social security payments.
It is important to note that social security will cover only a percentage of the employee’s salary during sick leave:
(two-thirds for outpatient illnesses and half for inpatient illnesses). It is, therefore, at the employer’s discretion to decide whether they pay the employee’s regular salary or make adjustments based on the SSI payments.
If sick leave exceeds six weeks of the employee’s notice period, the employer has the right to terminate the contract, but must pay severance pay.
Maternity & Paternity
Employees are entitled to 16 weeks of paid maternity leave: 8 weeks to be taken prior to the birth and 8 weeks following the birth of the baby. (In the case of a multiple birth, an additional two weeks is added to this time).
An employee can request to shorten the period prior to birth to up to three weeks, provided they receive a medical report. The unused leave can then be added to extend the leave post-birth.
An employee may also take unpaid maternity leave for up to six months.
Employees are entitled to five days of paid paternity leave.
Minimum Living Allowance (MLA/AGI)
This refers to the percentage of the employee’s wage that is not subject to income tax. The MLA is calculated based on the annual gross minimum wage and takes into consideration the marital status and number of dependents of the employee.
The following rates of annual gross minimum salary are not subject to income tax:
Please note: In the application of MLA, dependent children are defined as:
- Under 25 for those still in education
- Under 18 for those residing with or being cared for by the tax payer.