New regulation on meal cards and SSI premiums! Those who choose it will be exempt...

Multinet Up has announced that employers who choose the MultiNet meal card will be exempt from Social Security Institution (SSI) premiums.

According to the statement made by the company, with the circular numbered 2024/17 titled "Meal Allowance" published by the SSI on December 31, 2024, it was announced that employers who provide their employees' lunch allowance via meal cards instead of cash will be 100 percent exempt from SSI premium payments without any limit.

MultiNet meal card users can use the meal amount determined by their employers to cover their lunch needs at restaurants, cafes, buffets, and markets within the company's member merchant network, which covers more than 41 thousand businesses in total.

Employers, on the other hand, benefit from the tax advantages provided by the meal card. For example, for payments between 158 liras and 240 liras per day, when a MultiNet meal card is used, no SSI premiums, income tax, or stamp duty are paid.

In cash payments, while income tax is not paid for this amount, SSI premiums are paid. For payments up to 240 liras + VAT, when a MultiNet meal card is used, no SSI premiums, income tax, or stamp duty are paid. The 10 percent VAT amount on the invoice for this amount can also be subject to VAT deduction.

For amounts exceeding 240 liras, while the exemption from SSI premiums continues when using a MultiNet meal card, income tax and stamp duty are paid. In this case, the 10 percent VAT amount on the invoice can also be subject to VAT deduction.

In cash payments, however, there are SSI premium, income tax, and stamp duty obligations in both cases.

Multinet Up CEO Ali Emre Sever, whose views were included in the statement, stated that the meal card application provides both cost advantages to employers and makes significant contributions to employee welfare, adding that the application increases productivity in working life with the advantages it offers to the workforce.

Noting that with the new decision, while an exemption of up to 158 liras can be applied this year for cash assistance and meal assistance made with cards that can be used everywhere like cash, a premium exemption is provided for meal cards without being subject to any limit, Sever said, "We see the fact that employers who want to provide in-kind assistance via meal cards are completely exempt from premium payments as a convenience that paves the way for employers to set amounts for the benefit of employees by reducing their costs."

Pointing out that providing meal support, which is one of the important entitlements of employees, through the meal card application not only provides tax exemption to employers but also offers sustainable contributions to the national economy, Sever stated, "Meal cards, which bring customers to small-scale restaurants and eateries serving the lunch needs of employees, also contribute to the national economy by preventing informality in the food and beverage sector. We welcome the removal of the SSI premium limit on meal cards as a regulation that supports all these contributions provided by the meal card system."

News Source: AA