In a significant regulatory update, Turkey has revised its guidelines concerning meal allowance and their treatment under social security premium calculations for 2025. These changes stem from the decision of the 10th Chamber of the Council of State, No. 2023/170 and Decision No. 2024/1853, which resulted in the cancellation of certain provisions under the Regulation on Social Insurance Transactions. Following this cancellation, amendments have been made to the regulation, and new guidelines have been issued through the circular dated December 31, 2024, numbered 2024/17. The new regulations take effect from January 1, 2025, providing detailed instructions on meal allowances and their implications for premium-based earnings.
Key Changes in Meal Allowance Regulations in Turkey
Daily Meal Allowance Exemption
Effective January 1, 2025, the daily meal allowance exempted from premium-based earnings has been set at 158.00 TRY. This exemption applies to both cash payments and non-cash benefits, with specific conditions outlined for each case. The formula for calculating the exemption is as follows:
- Daily Exemption Amount: 158.00 TRY
- Monthly Exemption Amount: Number of days actually worked during the month x 158.00 TRY
- Meal Allowance to be Included in Social Security Base: Total meal allowance paid – Monthly exemption amount
Providing Meals at the Workplace or Outbuildings
Employers providing meals directly at the workplace or its outbuildings are not required to include these benefits in the premium-based earnings of employees. Additionally, if meals are provided via agreements with third-party catering services, payments made to these service providers are also excluded from the social security base. This ensures that meal-related benefits provided in kind or through third parties do not increase the employer’s social security liabilities.
Meal Payments to Third Parties
In cases where employers provide meals in restaurants or similar establishments managed by third parties, the total amounts paid for such meals are excluded from premium-based earnings. This provision offers flexibility for employers to utilize third-party services without incurring additional social security premiums.
Cash Meal Allowances
For cash payments under the guise of meal allowances, the regulations stipulate that the daily amount of 158.00 TRY will not be included in the premium-based earnings. Amounts exceeding this limit will be subject to social security premiums. The following example illustrates the calculation:
Example Calculation:
- Total Meal Allowance Paid: 5,000 TRY (for January 2025)
- Number of Days Worked: 22 days
- Daily Exemption Amount: 158.00 TRY
- Monthly Exemption Amount: 158.00 TRY x 22 days = 3,476.00 TRY
- Premium-Based Earnings: 5,000.00 TRY – 3,476.00 TRY = 1,524.00 TRY
In this scenario, 1,524.00 TRY is included in the social security base/premium.
Mixed Arrangements for Meal Benefits
If some employees at a workplace receive meals directly at the workplace while others are compensated with cash meal allowances, the daily exemption limit of 158.00 TRY still applies. This ensures equitable treatment across different forms of meal benefits.
Additionally, the exemption limit extends to cash allowances provided to employees during Ramadan or to those who cannot eat at the workplace for personal reasons. This ensures inclusivity and adherence to the purpose of meal allowances.
Payments Made with Meal Cards, Cheques, or Vouchers
The decision from the 10th Chamber of the Council of State clarified the treatment of meal cards, cheques, and vouchers. If these instruments are strictly for meal-related expenses and cannot be used for cash or other purposes, they are treated as in-kind benefits and exempt from social security premiums.
However, if the meal cards or vouchers can be used for purposes other than meals, the exemption is limited to the daily amount of 158.00 TRY. Any amount exceeding this limit is subject to social security premiums. The following example demonstrates this scenario:
Example Calculation:
- Total Meal Card Value: 6,000 TRY (for January 2025)
- Number of Days Worked: 22 days
- Daily Exemption Amount: 158.00 TRY
- Monthly Exemption Amount: 158.00 TRY x 22 days = 3,476.00 TRY
- Premium-Based Earnings: 6,000.00 TRY – 3,476.00 TRY = 2,524.00 TRY
In this case, 2,524.00 TRY is included in the social security base/premium.
Purpose of the Regulation
The primary objective of these regulatory changes is to ensure that meal allowances are used as intended and that they are fairly accounted for in social security premium calculations. By distinguishing between different forms of meal allowances and setting clear guidelines, the regulations aim to eliminate ambiguities and promote uniformity in practice.
Practical Implications for Employers and Employees
For Employers:
- Employers must ensure compliance with the new rules, whether they provide meals directly, through third parties, or via cash allowances.
- Payroll systems should be updated to reflect the daily exemption limit of 158.00 TRY and accurately calculate amounts subject to social security premiums.
- Employers offering meal cards or vouchers must verify their usage restrictions to determine their social security implications.
For Employees:
- Employees can benefit from the exemptions, ensuring that a larger portion of their meal allowances remains free from social security deductions.
- Those receiving cash meal allowances or using meal cards should be aware of the exemption limits to understand their take-home benefits.
Conclusion
The amendments to the Regulation on Social Insurance Transactions and the accompanying circular provide much-needed clarity and consistency in the treatment of meal allowances. These updates address the gaps left by the previous provisions and offer a fair framework for both employers and employees.
By setting clear guidelines and exemption limits, the regulations ensure that meal benefits are used appropriately and calculated accurately in social security premiums. Employers are encouraged to familiarize themselves with these changes and make the necessary adjustments to their payroll processes. Employees, too, should stay informed about how these changes affect their benefits.
For further details, stakeholders can refer to the official documentation or consult their customer representatives for tailored guidance.
