Amendment in the calcuation of livining allowance

In Accordance with article 8 of The Law on the Amendment to the Occupational Health and Safety  Law and Certain Statutory Decrees (Law no 6645, Official Gazette of 23 April 2015, No. 29335)  Effective from 01 May 2015,  Calculation of Minimum Living Allowance will be calculated as below;

Minimum Living Allowance is calculated as percentage of  Annual  Gross Minimum Wage. (2302,2 TL TL for 2019) MLA is calculated by following rates;

50% for the taxpayer,
10% for the spouse* provided who is unemployed,
7.5% each for the first two dependent children**,
10 % for the third dependent children  (Effective after 01 May 2015)
and 5% each for the following dependant children.

In the calculation of MLA,  first bracket rate (15%) of the Income Tax is used.   Calculation formula is as below;

 1/12 x  (Annual Minimum Salary x the Minimum Living Allowance rate) x 15%  

 

EXAMPLE

Annual Gross Minimum Wage in 2019/January (2.558*12) 30.696 TL
The Minimum Living Allowance Rate 85%
For the taxpayer himself 50%
For the spouse of the taxpayer 10%
For first two children of the taxpayer
For the third children of the taxpayer
15% and  10%
The Minimum Living Allowance Base 191,85 TL
Annual Minimum Living Allowance 2302,2 TL

 

Monthly Minimum Living Allowance is                                      191,85 TL

 

* Spouse refers husband or wife of taxpayer with legal marriage.

** Child refers to unmarried minor children below 18 years old and unmarried student children below 25 years old.

MINIMUM LIVING ALLOWANCE RATES EFFECTIVE 01 JAN 2019

 

UNEMPLOYED SPOUSE

(01 Jan 2019- 31 Dec 2019)

STATUS MINIMUM LIVING ALLOWANCE
SINGLE 191,85 TL
MARRIED 230,22 TL
ONE CHILD 259,00 TL
TWO CHILDREN 287,78 TL
THREE CHILDREN 326,15 TL
FOUR CHILDREN 326,15 TL
FIVE CHILDREN 326,15 TL
SIX CHILDREN 326,15 TL

 

EMPLOYED SPOUSE

(01 Jan 2019 – 31 Dec 2019)

STATUS MINIMUM LIVING ALLOWANCE
SINGLE 191,85 TL
MARRIED 220,63 TL
ONE CHILD 249,41 TL
TWO CHILDREN 287,78 TL
THREE CHILDREN 306,96 TL
FOUR CHILDREN 326,15 TL
FIVE CHILDREN 326,15 TL
SIX CHILDREN 326,15 TL

 

 For Turkish Payroll Components and Parameters, visit PAYROLL BASICS page