Effective since 01.01.2008, minimum living allowance rates are taken into consideration in the taxation of employee wages. The usable minimum allowance rate is calculated according to legally defined bases (marital status of the employee, whether his/her spouse receives a wage income and age and dependency of his/her children.

Calculated in accordance with the above-mentioned changes, minimum living allowance is deducted from tax payable, and then paid to the employee together with his wage. The current amount of minimum wage is taken into consideration in minimum living allowance calculation.  The minimum wage rate for employees aged 16 or more effective since the beginning of fiscal year is taken as basis in calculation.  This calculation is not affected by any change in minimum wage; the minimum wage that is in effect in the beginning of fiscal year will be taken as basis until the end of the year. Within this scope, the increase made in minimum wages in July will not have any effect in minimum living allowance.

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