Under temporary Article 1 of Law No. 7420, monthly payments of up to TRY 1,000 made by employers to employees towards electricity, natural gas and other heating costs are exempt from income tax and social security premiums.
Under temporary Article 1 of Law No. 7420, payments of up to TRY 1,000 per month made by employers to employees in addition to their existing salaries, towards electricity, natural gas and other heating costs, between 9 November 2022 (the date that article entered into force) and the end of June 2023, are exempt from income tax and social security premiums.
The payments must be made towards electricity, natural gas and other heating costs, for the purpose of meeting employees’ heating needs.
The portion of payments made to employees towards electricity, natural gas and other heating costs of up to TRY 1,000 in total per month is within the exemption; any excess will be subject to income tax and social security premiums.
To benefit from the exemptions, the payments must be made in addition to employees’ existing salaries/earnings subject to premiums.