This is the English version of a Turkish article. The original, with further detail and linked petition templates, is at Asgari Geçim İndirimi Kaldırıldı: Bordroda Ne Değişti?.
For years your payslip carried a line for the minimum living allowance, and it changed with your family circumstances. From the beginning of 2022 that line disappeared.
What replaced it works differently, and the result is better for some employees and neutral for others. This article covers the change, its effect on the payslip, and claims from the earlier period.
What the Allowance Was
The minimum living allowance was an amount calculated according to the employee's marital status and number of children and deducted from income tax.
It was worked out on the annual gross minimum wage: a set proportion for the employee, with additional proportions for a non-working spouse and for children. The result appeared as a separate line on the payslip and was added to net pay.
That structure had two known problems: two employees doing the same job took home different amounts because of their family circumstances, and the payroll calculation was needlessly complicated.
What Replaced It
The allowance was abolished at the start of 2022. In its place, the part of any wage corresponding to the minimum wage was exempted from income tax and from stamp duty.
The exemption applies to every employee, not only those on the minimum wage. For higher earners, the part of the wage above the minimum wage is taxed at the ordinary rates.
The result is that income tax and stamp duty on the minimum wage fall to zero, while for everyone else the tax base is reduced by the amount of the minimum wage.
The payslip no longer carries an allowance line; the exemption is reflected in the tax calculation instead.
Who Gained, and Who Did Not
- A single employee with no children on the minimum wage: received the smallest allowance under the old system and gained, because the deduction disappeared entirely.
- A married employee on the minimum wage with a non-working spouse and children: received a large allowance before; now everyone benefits from the same exemption, so the difference has closed.
- Employees above the minimum wage: the tax burden fell, because an amount equal to the minimum wage is exempt from the base.
The new scheme removed the difference in take-home pay between people doing the same job with different family circumstances. It also removed the extra support that larger families used to receive.
The Effect of the Tax Brackets
As the cumulative tax base rises during the year, an employee moves into a higher income tax bracket and the rate of deduction increases. So someone on the same gross wage can see their net pay fall in the second half of the year.
The exemption reduces that effect but does not remove it: the part above the minimum wage is still taxed at the ordinary rates, so the move between brackets still happens.
Where the contract of employment fixes the wage net, the employer bears the difference caused by the change of bracket; where it fixes it gross, the employee does. Which is why the contract should say expressly whether the wage is net or gross.
Claims from the Earlier Period
Although the allowance is gone, it can still be in dispute for earlier periods. The situations met in practice:
- The allowance never paid. Shown on the payslip but not actually paid — which is a claim in its own right.
- Miscalculation. Calculated without taking the declared marital status and children into account.
- Treated as part of the wage. The allowance was not part of the minimum wage; it had to be paid in addition to it.
Wage claims are subject to a five-year limitation period running from when the claim arose, so check the dates for anything from before the abolition.
The claim is brought as part of an employment claim, and applying to a mediator is a condition of bringing proceedings in employment disputes.
The strongest evidence in a wage claim is the payslip together with the bank records. An amount shown on the payslip that never reached your account is a claim in itself — and because of the five-year limitation period, it is worth keeping the older documents.
Frequently Asked Questions
When was the allowance abolished?
At the start of 2022. In its place, the part of any wage corresponding to the minimum wage was exempted from income tax and stamp duty.
Does the exemption apply to me if I earn more than the minimum wage?
Yes. An amount equal to the minimum wage is exempt for every employee; only the part above it is taxed at the ordinary rates.
Why does my net pay fall later in the year?
Because the cumulative tax base moves you into a higher bracket. The exemption softens that effect but does not remove it.
Who bears the difference when the bracket changes?
The employer, where the contract fixes the wage net; the employee, where it fixes it gross. Say which in the contract.
Can I still claim an unpaid allowance from before 2022?
Yes, as an employment claim, subject to the five-year limitation period from when it arose — and mediation first.