Important Regulation on Meal Allowance and SSI Premium Exemption

The provision in Article 97, paragraph 7, subparagraph (a) of the Social Insurance Transactions Regulation, which governs the earnings subject to premiums for insured individuals under Article 4, paragraph 1, subparagraph (a), had previously stated; "Provided that no meals are provided at the workplace or its premises, any payments made under the name of meal allowances, whether directly to the insured or to third parties on their behalf, shall not be considered in calculating earnings subject to premiums, up to the amount obtained by multiplying the daily minimum wage by a rate determined by the Institution's Board of Directors and the number of days actually worked."

This provision, along with Circular No. 2022/22 based on it, was annulled by the decision of the 10th Chamber of the Council of State dated May 8, 2024 (E.:2023/170; K.:2024/1853).

You can access the details of the relevant decision here.

Following this annulment, it became necessary for the Social Security Institution (SGK) to issue new regulations to resolve uncertainties in working life and provide guidance for implementation.

Amendments to the Social Insurance Transactions Regulation Following the Annulment Decision by the Council of State

In line with the Council of State’s decision dated May 8, 2024, and numbered E.:2023/170 and K.:2024/1853, subparagraph (a) of paragraph 7 of Article 97 of the Social Insurance Transactions Regulation has been revised. After the annulment decision, the SSI, as the enforcer and implementer of the regulation, issued the necessary amendments.

According to the revised regulation: In cases where meals are not provided at the workplace, benefits provided to insured individuals in the form of meal allowances—whether in cash or through meal cards, vouchers, or coupons that can only be used for meal services—shall not be considered in calculating earnings subject to premiums, up to the amount obtained by multiplying the gross daily minimum wage by 23.65% and the number of days actually worked.

This amendment clarifies that the provision which allowed for SSI premium exemptions under specific limits for meal allowance payments made to third parties on behalf of insured individuals has been removed.

Payments made to third parties for meal allowances on behalf of insured individuals, or uploads to meal cards strictly designated for meal purposes, will not be included in the calculation of earnings subject to premiums, provided that no meals are provided at the workplace or its premises. From now on, all amounts loaded onto meal cards by employers for their employees will be fully covered under the SSI premium exemption.

However, it should be noted that if meal card balances are used in violation of regulations—for instance, as wage payments—such cases may result in administrative fines under Law No. 5510 on Social Insurance and General Health Insurance. Additionally, any applicable incentives may be revoked by SSI.

For meal allowances paid in cash or provided via meal cards/vouchers/coupons that can also be used outside meal services, only the portion not exceeding the amount obtained by multiplying the gross daily minimum wage by 23.65% and the number of days actually worked will be excluded from earnings subject to premiums. Payments exceeding this limit will be included in earnings subject to premiums.

The new regulation will take effect at the beginning of the month following its publication date, December 2, 2024.

This amendment is significant for both employers and employees. Employers should carefully follow SSI guidelines and announcements to ensure compliance with the updated regulations.

Employers must also ensure that their payment practices align with current legislation.

You can access the relevant regulation here. (In Turkish)

Should you have any queries or need further details, please contact your customer representative.