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BUSINESS > New act brings tax exempt to minimum wage workers

ANKARA - Hürriyet Daily News

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Minimum wage workers will enjoy tax exemption if efforts on a new constitution finalize and the constitution is enacted. DAILY NEWS photo

Minimum wage workers will enjoy tax exemption if efforts on a new constitution finalize and the constitution is enacted. DAILY NEWS photo

Göksel Bozkurt Göksel Bozkurt goksel.bozkurt@hurriyet.com.tr

Parliament’s Constitution Reconciliation Commission added a new article to the new constitution draft that makes low-income and minimum-wage earners exempt from paying income taxes.

Adding a minimum wage earner tax exemption status to the draft constitution was unanimously agreed on by the ruling Justice and Development Party (AKP), the main opposition Republican People’s Party (CHP), the Nationalist Movement Party (MHP) and the Peace and Democracy Party (BDP).

New precautions against child employment are also expected to be added to the new constitution.
Important changes regarding work life were written into the draft charter at a Sept. 20 meeting of the Constitution Drafting Commission by a sub-commission of the Parliament Constitution Reconciliation Commission.

The article covering “social security and just wage right” was written with the consensus of all four parties. The article’s first clause states “Everyone has the right to work, job safety and a fair wage, enough to provide a life in accordance with human honor and dignity.”

The situation of workers earning only minimum wage was also discussed at the meeting. “The needs to survive will be taken into account to decide on a minimum wage and no [income] tax [shall be taken] from minimum wage [earners],” the article stated. Workers earning minimum wage will be exempted from paying income tax and will instead receive their total gross salary, which today totals 940.50 Turkish Liras, while the net salary of a minimum wage earner today is 739.79 liras. A tax exemption status will equate to an additional 125 liras in the pocket of minimum wage earners according to today’s salary condition.

Encouragement for working moms
The state will also work to assist working mothers through a new clause that has been added to the draft constitution. “The State encourages employers to provide daycare centers,” the clause read. The same clause also touches on child employment, ensuring that “no one be given work that is not suitable to his or her age and strength.”

September/22/2012

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