1- WHO ARE IN THE SCOPE OF THIS OBLIGATION?
The employers who employ 1 or 4 employer(s) can optionally pay the base pay and fringe pays cash in person.
On the other hand, employers who employ 5 or more than 5 employers should transfer the base pay and fringe pays to the employees’ bank account.
2- SINCE WHEN HAS THIS OBLIGATION BEEN IN FORCE IN TURKEY?
This practice came into force in 01 January 2009.
This legislation was obligated with ‘’ regulations on paying the wages, premiums, contributions and all the fees related to this qualification through banks’’ published in the gazette no. 27058 and dated 18 November 2008.
When this legislation came into force for the first time, it involved work places with 10 or more than 10 employees.
The minimum number of employees, in relation to the aforementioned payments made via banks, was reduced from 10 to 5 by the date of 01 June 2016 with the new regulations published in the gazette numbered 29718 and dated 21.05.2016.
It means that the employer should pay the base pay and fringe pays through the bank by the date of June 2016 (including June) if he/she employs 5 or more than 5 employees.
3- WHICH SECTORS ARE INCLUDED?
3.1- EMPLOYEE working under Turkish Code of Obligations
3.2- JOURNALIST working under the law numbered 5953
3.3- EMPLOYEE employed other than journalist in newspapers and periodicals, in press and photograph agencies
3.4- SHIPMAN working under Maritime Labor Law
3.5- EMPLOYEE working under Labor Law numbered 4857
4- HOW CAN ONE MAKE A PAYMENT WITHOUT A BANK?
The employees, vice principles or the third parties may make payments through PTT if there is no branch bank near the workplace or there is no chance to make the payments via bank.
5- THE EXPLANATION OF THE PAYMENT SHOULD BE WRITTEN CLEARLY!
The employee, vice principle or the third parties should specify the qualification of the payments made via banks in the explanation part of the account. (Salary, Premium, bonus, compensation etc.)
6- WHAT IS THE PENALTY FOR DISOBEYING THE LAW?
The penalty of nonpayment of salary, Premium, bonus and compensations through personal bank accounts is 167 TL on the basis of each month and each employee (for 2017).
For example, if the employer paid the salaries in person for 6 employees and for 4 months;
167 TL x 6 Employees x 4 Months = 4.008 TL will be the amount of penalty.
Source: The Regulations of Ministry of Labor and Social Security, official gazette
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
