New Social Security Package on the Way: Tax Brackets and Premiums to be Revamped
The ruling party is preparing to present a package containing significant changes in social security to the Parliament. According to exclusive news from CNBC, the package includes innovations that will affect millions, such as a 5-point premium support, the postponement of General Health Insurance (GSS) debts, and adjustments in tax brackets.
Tax brackets on the agenda of unions Turk-Is, Hak-Is, and DISK unions have raised their demands for regulations regarding tax brackets that lead to reductions in wages in the Parliament. As part of these demands, updating the tax schedule according to the revaluation rate of the Ministry of Treasury and Finance and ensuring that the first bracket is 14 times the minimum wage stand out. While the Labor and Social Affairs Commission is considering this request, preventing entry into the second bracket of the Income Tax Law could prevent wage reductions throughout the year. Additionally, the option to reduce the tax bracket from 15% to 10% is being evaluated.
If these regulations are implemented, the net salaries received by employees will be more stable. Unions emphasize that these changes will benefit workers and are expecting steps from the government to pull the tax burden to a fair level.
5-point premium support is being reshaped A change in the 5-point premium support is planned to address employment issues in the industrial sector, which was discussed at the Economic Coordination Council meeting. Increasing this support to 7 points in sectors like textiles, furniture, ready-to-wear clothing, and leather is being considered, while in some sectors, it may be decreased to 4 points.
The premium incentive, in effect since 2008, continues for employers who regularly pay their taxes and premiums. The premium reduction is made based on the gross salary paid to the worker, providing a monthly premium incentive of 1,000 lira for minimum wage workers, and 7,500 lira for workers whose earnings are subject to the maximum premium. This incentive, which has a cost of 43 billion lira to the government, is expected to be re-evaluated in the Economic Coordination Council.
New postponement for GSS debts Citizens with General Health Insurance debts were set to lose their right to benefit from health services starting January 1. However, the ruling party is preparing a new regulation regarding GSS debts. Last year, debts were postponed until December 31, 2024, and with this new regulation, indebted citizens will be able to continue benefiting from health services from January 1, 2025, to December 31, 2025.
This new regulation will provide relief to many citizens at risk of losing access to health services. The debt postponement aims to give citizens time regarding access to health services while alleviating the burden on the economy.