According to the regulations on article 32 of Income Tax Law no 193, with effect from 1 February 2008, minimum living allowance will be applied in taxation of wages.

 In accordance with regulation, after calculating the amount of tax the employees who receive income from wages, the amount of the minimum living allowance calculated in accordance with the regulations will be reduced from the payable income tax. According to this, the minimum wage rate effective as of the beginning of first fiscal year for employees aged 16 or more applies.
The tax assessment is charged at annual total minimum wage.

How To Calculate Minimum Living Allowance

To calculate the tax assessment:

%50 for the employee

%10 for the non-employed spouse

% 7,5 each for the oldest two dependent children and  %5 for each dependent child in excess of two.

Minimum Living Allowance is calculated according to above rates and multiplied by gross annual salary.

The Minimum Living Allowance assessment is than multiplied by the first tax bracket rate to calculate Minimum Living Allowance rate.