What does payroll (bordrolama) mean in Turkey ?
TDK (Turkish language institute) in Turkey defines the word “payroll” as “the chart showing the details of an account”. This word, which has passed from the French language to turkish language, refers to taking a payroll breakdown. Taking a payroll breakdown, describes the process of creating and extracting payrolls done by the human resources or accounting departments of the enterprises.
What means payslip (bordrolama) in Turkey ?
It is the valuable document that shows in detail the wage that the employer must pay to the worker every month and the legal and private deductions made from this wage. The payroll has the feature of securing the employer as well as the employee. Therefore, the special or legal procedures applied in the progress accruals and deductions in it. All elements in the payroll, must be fully regulated by the human resources and accounting departments.
How is the payroll calculated in Turkey ?
So how is standard payroll calculated? To understand this account, we must first know the deductions and rates.
Standard payroll: Calculations are made with the following deduction rates for employees who do not have special status such as retired, disabled, or incentive personnel.
Example of standard payroll calculation:
SSI worker share: Gross wage x 14%
SSI unemployment insurance: Gross wage x 1%
Income tax base: Gross wage – (SGK worker share + SGK unemployment insurance worker share)
Income tax (GV): Income tax base x 15%
Stamp duty (DV): Gross wage x 0.0075
Minimum Living Allowance (AGI): It is calculated by applying the rates in article 32 of the Income Tax
Law to the following formula:
AGI annual amount: [(Annual gross amount of minimum wage x AGI rate) x 15%]/12
Total deductions: SGK worker share + SGK unemployment insurance + GV + DV
Net wage: Gross wage – Sum of deductions
Income tax brackets from wages are calculated according to the tariff determined and announced by the Revenue Administration (GİB) every year. The income bracket varies from 15% to 35% according to earnings.
The income tax collected from wages is calculated according to the tariff determined and announced by the Revenue Administration (GİB) every year. The income bracket varies from 15% to 35% according to the earnings.
How to get a payslip in Turkey ?
How and where does the staff get the payslip? Employees in the private sector can have their payroll prepared by the human resources unit or accounting department of their workplace. Officers can inquire about their payrolls via e-Government. Past salary information can also be seen in e-Government.
