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10:20, 22 September 2012 Saturday

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Payroll tax on minimum wage to be removed
Payroll tax on minimum wage to be removed

The Constitutional Reconciliation Commission decided to add an article to the new constitution that says “No taxes are to be taken from minimum wage payrolls,” following a debate over fair pay

World Bulletin/News Desk

The Constitutional Reconciliation Commission agreed on Friday to include an article in the new constitution eliminating the payroll tax on minimum wage employees.

The commission, which is tasked with drafting Turkey's first civilian constitution, recently discussed the issues of labor, social security and fair pay as well as economic and civil rights, concluding with a decision to add an article to the new constitution that says “No taxes are to be taken from minimum wage payrolls,” following a debate over fair pay. The four political parties in Parliament all agreed on the article.

The article was added after taking workers' living expenses into account and states that “employment, job security and a salary are required that can provide a standard of living in accordance with moral values,” noting also that “no one should be allowed to work at jobs not suited for their age or strength.” The article also paid attention to the rights of women who have children, saying that “the government encourages employers to provide child care services.”

Meanwhile, Ankara Textile Manufacturers' Association (AGSD) President Canip Karakuş described the elimination of the payroll tax as “a financial revolution” and noted it will provide a major support to workers. Saying that it should be approached as a step towards achieving a fair distribution of income among society, he stated: “According to data from the Finance Ministry, minimum wage employees number around 5 million. Currently net minimum wage is TL 739.79 per month, and TL 125 of payroll tax will be added back on top of that, providing financial relief to workers.”



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