What is the 2025 Meal Allowance in Turkey ?

With the introduction of new regulations, Turkey has updated the rules surrounding meal allowance and their inclusion in social security premium calculations for 2025. These changes, influenced by the 10th Chamber of the Council of State’s recent rulings, aim to bring clarity and uniformity to the handling of meal-related benefits. The updates take effect on January 1, 2025, following Circular No. 2024/17, dated December 31, 2024, and address various forms of meal allowances provided to employees.

Key Updates to Meal Allowance Policies in Turkey in 2025

The revisions define how meal allowances are treated in terms of exemptions and social security premium calculations. These guidelines impact both employers and employees, ensuring transparency and consistency in payroll practices.

1. Daily Meal Allowance Exemption

For 2025, the daily exemption amount for meal allowances has been set at 158.00 TRY. This exemption applies to both cash allowances and in-kind benefits, subject to specific conditions:

Daily Exemption Amount: 158.00 TRY
Monthly Exemption Formula: Number of days worked × 158.00 TRY
Meal Allowance Subject to Social Security Premiums: Total allowance paid – Monthly exemption amount

Example:

Total Meal Allowance Paid (January 2025): 5,000 TRY
Days Worked: 22
Exempted Amount: 22 × 158.00 TRY = 3,476.00 TRY
Amount Subject to Premiums: 5,000.00 TRY – 3,476.00 TRY = 1,524.00 TRY

In this scenario, 1,524.00 TRY would be included in the social security premium base.

2. Meal Provision at the Workplace or Through Third Parties

Employers providing meals directly at the workplace or through agreements with catering services are exempt from including these benefits in the social security premium base. This applies to:

Meals prepared and served at the workplace or its annexes.
Meals provided via contracts with third-party catering companies.

These provisions ensure that meal-related benefits delivered in-kind do not increase employers’ social security obligations.

3. Cash Meal Allowance in Turkey in 2025

For cash payments provided as meal allowances, only amounts exceeding the daily exemption of 158.00 TRY are subject to social security premiums. Employers offering cash allowances must ensure compliance with this cap to avoid additional liabilities.

Example:

Cash Allowance Paid (January 2025): 6,000 TRY
Days Worked: 22
Exempted Amount: 22 × 158.00 TRY = 3,476.00 TRY
Amount Subject to Premiums: 6,000.00 TRY – 3,476.00 TRY = 2,524.00 TRY

In this example, 2,524.00 TRY would be included in the premium calculation.

4. Mixed Arrangements for Meal Benefits

Workplaces offering a mix of meal provisions (some employees receiving meals in-kind while others receive cash allowances) must adhere to the daily exemption limit of 158.00 TRY. This ensures fair treatment across different benefit formats.

Special allowances, such as cash provided during Ramadan or for employees unable to access workplace meals due to personal reasons, are also eligible for the exemption, maintaining inclusivity.

5. Meal Cards, Cheques, and Vouchers

The updated regulations clarify the treatment of meal cards, cheques, and vouchers:

Strictly Meal-Related Instruments: Meal cards or vouchers exclusively used for food purchases and restricted from cash withdrawals are considered in-kind benefits and are fully exempt from social security premiums.
Flexible Instruments: If meal cards or vouchers can be used beyond meal-related expenses, only amounts up to 158.00 TRY per day are exempt, with the excess subject to premiums.

Example:

Meal Card Value (January 2025): 6,000 TRY
Days Worked: 22
Exempted Amount: 22 × 158.00 TRY = 3,476.00 TRY
Amount Subject to Premiums: 6,000.00 TRY – 3,476.00 TRY = 2,524.00 TRY

Here, 2,524.00 TRY would be included in the social security base.

Purpose and Goals of the New Regulations

The primary objective of these changes is to promote transparency and proper use of meal allowances, ensuring they serve their intended purpose. By clearly outlining the treatment of cash and in-kind benefits, the regulations aim to:

Eliminate inconsistencies in the application of exemptions.
Provide fair treatment across different forms of meal-related benefits.
Reduce disputes over social security premium calculations.

Implications for Employers and Employees

For Employers

Compliance Requirements: Employers must align their payroll systems with the new regulations to calculate exemptions and premiums accurately.
Flexibility in Meal Provision: The rules allow employers to provide meals through various methods—on-site, third-party catering, or cash—while ensuring compliance with exemption limits.
Verification of Meal Cards: Employers issuing meal cards or vouchers must ensure their usage complies with the regulations to maximize exemptions.

For Employees

Take-Home Benefits: Employees benefit from a larger portion of their meal allowances being exempt from deductions, increasing their net income.
Clarity on Allowances: Employees can better understand how their meal benefits are calculated and what portion is exempt from social security premiums.

Comparison with Previous Regulations

The 2025 updates address gaps in previous policies, particularly around cash allowances and mixed benefit arrangements. The introduction of a uniform daily exemption limit ensures consistency across all workplaces and benefit types.

Practical Steps for Employers

Review Payroll Systems: Update payroll calculations to reflect the new daily exemption cap.
Audit Meal Benefits: Ensure meal allowances, whether in cash or in-kind, comply with the updated regulations.
Educate HR Teams: Provide training to HR and payroll teams on the changes to ensure accurate implementation.
Communicate with Employees: Inform employees about how these updates affect their benefits and net earnings.

Conclusion

The revised meal allowance and social security premium regulations for 2025 offer much-needed clarity and consistency, benefiting both employers and employees. By establishing clear exemption limits and differentiating between various benefit types, these changes promote fair treatment and eliminate ambiguities in payroll practices.

Employers are encouraged to familiarize themselves with the updated guidelines and adjust their systems accordingly to ensure compliance. Employees, in turn, can take advantage of these regulations to maximize their benefits. For further assistance, stakeholders are advised to seek guidance from legal or payroll professionals.