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. (1647,00 TL for 2016) 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 2015/January (1021,50*12) 14.418 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 15%
For the third children of the taxpayer 10%
The Minimum Living Allowance Base (14.418 x 85%) 12.255,3 TL
Annual Minimum Living Allowance (12.253,3 x 15%) 1838,3 TL

 

Monthly Minimum Living Allowance is (1838,3/12)                        153,19 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 2016

 

UNEMPLOYED SPOUSE

(01 Jan 2016 – 31 Dec 2016)

STATUS MINIMUM LIVING ALLOWANCE
SINGLE 123,53 TL
MARRIED 148,23 TL
ONE CHILD 166,76 TL
TWO CHILDREN 185,29 TL
THREE CHILDREN 209,99 TL
FOUR CHILDREN 209,99 TL
FIVE CHILDREN 209,99 TL
SIX CHILDREN 209,99 TL

 

EMPLOYED SPOUSE

(01 Jan 2016 – 31 Dec 2016)

STATUS MINIMUM LIVING ALLOWANCE
SINGLE 123,53 TL
MARRIED 123,53 TL
ONE CHILD 142,05 TL
TWO CHILDREN 160,58 TL
THREE CHILDREN 185,29 TL
FOUR CHILDREN 197,64 TL
FIVE CHILDREN 209,99 TL
SIX CHILDREN 209,99 TL

 

 For Turkish Payroll Components and Parameters, visit PAYROLL BASICS page