A ) Income Tax Exempted Severance Pay

According to the circular numbered 27998389-010-06-02-6152 released by the General Directorate of Budget and Fiscal Control on 07.01.2016 with the subject ‘Financial and Social Rights’, the coefficients used to calculate the wage of a civil servant have been revised effective 01.07.2016.

The following values have been calculated taking these coefficients into account, and shall be applied for the period between the dates of 01.07.2016 – 31.12.2016;

1. Maximum severance pay to be exempted from income tax is 4.297,21.- TL,

The Regulation on Payment of Wages, Premiums, Bonuses and All Kinds of Remunerations Qualifying As Such Via Banks, published in the Official Gazette dated 18 November 2008 and no. 2705818, stipulated that, in the event of the number of people employed under Labor Law, Maritime Labor Law and Press Labor Law being 10 and higher, all kinds of payments falling within the scope of the regulation was required to be effected via bank. By the regulation published in the Official Gazette dated 21 May and no. 29718, the limit of number of people that was 10 was updated as 5. In addition, "Bank" and "Account" terms were redefined in the new regulation.

A regulation was published in the Official Gazette in order to support the legislation on sheltered workshops with different incentives, which has been in force since 2013 in Türkiye. According to the published regulation, provided that the employers employ a certain number of disabled workers and obtained a sheltered workshop certificate, they will be able to benefit from wage incentives up to TL 700.00 per employed worker.

Article 7 of the Labor Law dated 22.05.2003 and numbered 4857 was enacted by the TBMM with Law No. 6715 on dated 06.05.2016. The relevant law has been changed as follows.

With this law, a temporary employment contract will be signed between Private Employment Agencies and employers and their transfer to employers will be provided.