In Turkey, there are some common side benefits which may not be common in other countries. Some of our European customers are surprised when they hear that companies provide shuttle service for commuting, or lunch allowance. Side benefits can be as important as the salary for an employee to accept an offer; hence, a foreign company should understand the local practices well.
Company car is provided mainly to the executives of sales departments as well as the field sales force. For employees of the top managerial level, company cars, sometimes even chauffeur-driven, are customary as a status symbol. The brand and model is determined according to the position’s level.
Employers usually work with fleet leasing companies, paying a fixed monthly amount including insurance and maintenance costs, as determined in a long-term contract. Paying a car allowance instead of providing a company car is not a common practice in Turkey, and most employees do not accept it. Employees are usually allowed to use the car for private purpose under certain conditions.
For the positions where company car is not provided, employees’ transportation to and from the workplace is usually taken care of by the employer, either through the payment of a transportation allowance or by organized bus transportation from/to certain collection points or their homes. This benefit is not provided for remote positions, but for hybrid positions either public transport or taxi costs are covered according to the number of office days.
Since the benefits of the Turkish social security system frequently do not meet the expectations of the employees,regardless of the level, white collar employees often lay claim to supplementary private health insurance. As almost all multinational companies offer it to their employees, it can be a meaningful extra benefit for qualified employees to ensure long employment with the company. Management positions are usually offered private insurance for the family as well.
It is an almost universal practice in Turkey that companies provide lunch to their employees. There are different systems: Either a free meal is served in the company cafeteria or kitchen, or food is ordered from outside at the company’s expense, or a meal card is provided which can be used in various restaurants. As meal cards are not allowed to be used in shopping in supermarkets, some companies pay the same amount as cash for the benefit of the employees. Should the paid amount exceed the limit determined by the tax office, the difference must be taxed as fringe benefits together with the salary.
The allocation of mobile phones is being handled analogous to company cars, meaning that it is relevant for top managers, executives of the sales department, and the field sales force. Besides, this benefit can be offered to other positions depending on the communication needs.
Besides, additional benefits granted by the employer, particularly when they have a personal touch, are popular and common practice in many Turkish companies. Employees can be motivated strongly through small gifts or additional payments at the New Year, Bayram (religious holidays), or on other occasions. After the pandemic, home office support has become common for remote positions, such as support for internet and electricity costs, or equipment. Besides, some companies provide contributions to the private pension system, which provides additional income to retirement income as a complement to the social security system. Fitness center membership, birthday leave, or psychological support can be alternative benefits.
There are both locally manufactured and imported car models in Turkey. Passenger cars are relatively expensive in Turkey due to the high excise duty. The leasing fee depends on the segment of the car, if it is B, C or D, which should be chosen according to the level and needs of the position. Particularly in certain sectors, the car brand can be important for the prestige of the company as it may be associated with the brand image of the company. Hence, it should be chosen by taking into account the local perceptions.
The tax-deductible lunch allowance is TRY 170 per day in 2024. Companies can offer higher amounts depending on the position, their sectors, and their location. Due to the high inflation and increasing food prices in Turkey, this important benefit should be regularly updated.
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