Tax Advantages on Meals, Transport and Fringe Benefits in Companies (2026 Guide)

🚀 Quick Overview

• Meals provided at the workplace: Meals provided at the workplace or its annexes (canteen, catering, etc.) are exempt from tax and SSI contributions with no amount limit.

• If meals are not provided at the workplace: Meal allowances of up to 300 TL per day are exempt from income tax, stamp duty and SSI contributions; for payments including 10% VAT (meal cards/vouchers), this amount equals 330 TL.

• Shuttle service: Transport/shuttle services provided by the employer are fully exempt with no amount limit.

• Public transport cards/tickets: An income tax exemption of up to 158 TL (excluding VAT) per day actually worked applies; travel allowances paid in cash are fully taxable.

• Nursery allowance: Provided it is paid directly to the nursery or day-care centre, there is an income tax exemption of up to 16,515 TL per child per month.

• Child allowance: In the second half of 2026, there is an income tax exemption of up to 787.76 TL per month for children aged 0-6 and 393.88 TL for children over 6.

• Private health insurance and private pension (BES): The total amount paid by the employer is not subject to SSI contributions as long as it does not exceed 30% of the monthly gross minimum wage (9,909 TL).

How Do You Benefit from the Tax Advantage on Meal Allowances?

Providing meals at the workplace or its annexes

If you run a kitchen within your company, or have an agreement with an outside catering firm and serve meals at the workplace, things are quite simple. With this method there is no daily monetary limit. The entire meal service provided is exempt from income tax, stamp duty and SSI contributions.

If meals cannot be provided at the workplace

If you cannot provide a meal service at the workplace due to physical constraints, you can offer your employees meal cards, meal vouchers or meal coupons. The legal limits for 2026 are as follows:

• Income Tax and Stamp Duty: 300 TL (excluding VAT) per day actually worked. When the 10% VAT applied to meal card top-ups is included, the daily top-up limit per card is 330 TL.

• SSI Contributions: Following legal amendments, the SSI meal exemption has been brought fully into line with the tax exemption. As of 17 April 2026, the daily SSI contribution exemption is also applied as 300 TL.

⚠️ The exemption is calculated on the basis of days actually worked. If you have topped up meal allowances for days of leave, sick leave or holidays, the amount for those days does not fall within the exemption. Always check the number of days when preparing the payroll.

What happens if you exceed the limit?

For payments above the daily limit of 300 TL (excluding VAT), the excess is grossed up directly from net to gross and added to the employee's gross salary. Income tax, stamp duty and SSI contributions are deducted from this additional amount.

Example: Suppose you have topped up a total meal allowance of 4,000 TL for an employee for 10 days actually worked.

• Exempt Amount: 10days300TL=3,000TL

• Taxable Portion: 4,000TL-3,000TL=1,000TL (This 1,000 TL is grossed up and included in the payroll).

Choose the Right Method for Transport Allowances

For travel allowances, the exemption depends on how the allowance is provided:

• Employer Shuttle Service: Shuttle vehicles or company vehicles hired for staff commuting are fully exempt from Income Tax, Stamp Duty and SSI contributions with no amount limit.

• Public Transport Card, Season Ticket or Ticket: Where no shuttle service is available, an income tax exemption of up to 158 TL (excluding VAT) per day actually worked applies to cards or monthly public transport season tickets topped up for employees.

• Cash Travel Allowance: Amounts paid in cash into the employee's bank account with the description "Travel Allowance" have no tax or SSI exemption at all. The full amount paid is treated as net wages and is grossed up and taxed like a normal salary.

💡 Paying travel allowances in cash through the payroll is the most expensive method for the employer. If there is a travel entitlement defined in the contract, providing it as a corporate transport card or season ticket instead of paying it in cash will bring your company significant tax savings.

2026 Exemptions for Other Fringe Benefits

For fringe benefits other than meals and travel, the law also grants exemptions within certain limits.

Nursery allowance

Nursery support given to female employees offers a significant tax advantage, with the aim of encouraging women's employment. The key condition for the exemption is that the payment is made directly to the bank account of the taxpayer running the nursery or day-care centre.

• 2026 Ceiling: 16,515 TL per child per month, which is 50% of the gross minimum wage.

• SSI Aspect: Payments made directly to the nursery against an invoice are not included in the SSI contribution base. However, if the amount is paid to the employee in cash, the tax exemption is lost and SSI contributions become payable.

Child allowance

Child allowance paid under an employment contract or collective agreement is exempt from income tax depending on the child's age. For the period 1 July-31 December 2026:

• Aged 0-6: 787.76 TL per child per month

• Over 6: 393.88 TL per child per month

For SSI purposes, child allowance is exempt up to 2% of the gross minimum wage (per child, for a maximum of 2 children). Although there is a 10% SSI exemption for family allowance (spouse allowance), there is no specific income tax exemption for family allowance in the private sector.

Private health insurance and private pension (BES)

Private health insurance premiums and BES contributions paid by the employer on behalf of employees are not subject to SSI contributions as long as their monthly total does not exceed 30% of the minimum wage. Based on the 2026 gross minimum wage, this limit is approximately 9,909 TL.

The income tax position is different: these premiums count as wages, but the premium paid can be deducted from the income tax base provided it does not exceed 15% of the wages earned that month and the annual gross minimum wage. So this is a limited deduction rather than a full exemption.

Death, birth and marriage allowances

• Death allowance: Exempt from income tax.

• Birth and marriage allowances: The exemption is limited to two months of the employee's wages.

• SSI Position: Since all three types of allowance are by nature treated as "in-kind and social aid", they are not included in earnings subject to SSI contributions.

Gifts, bonuses and other cash payments

Holiday bonuses, performance bonuses, gift vouchers or shopping cards that are not expressly defined as "exempt" in the legislation count as wages. The full amount must be grossed up and made subject to Income Tax, Stamp Duty and SSI contributions.

Which Allowance Is Exempt Where? Summary Table

* Since public transport card or ticket top-ups are not treated as cash payments but as in-kind aid, they are fully exempt from SSI contributions with no amount limit. If the travel allowance is paid in cash, however, the full amount is subject to SSI contributions.

Checklist for Employers

• Meal Parameters: Verify the daily meal limit of 300 TL (330 TL including VAT) and the number of days actually worked each month against the timesheet.

• Software Update: Make sure the SSI and tax meal exemption threshold parameters in your payroll and HR software have been updated.

• Transport Method: Review travel allowances paid in cash; where possible, switch to a shuttle or corporate transport card model.

• Nursery Invoices: Make nursery payments directly to the institution's account and keep the invoices.

• Coefficient Check: Update exemptions linked to child allowance and the civil servant coefficient every half-year from the announcements of the Revenue Administration (GİB).

• Minimum Wage Limits: Regularly check whether the total of BES and Private Health Insurance exceeds 30% of the monthly gross minimum wage (9,909 TL).

• Grossing Up: Tax all fringe benefit amounts exceeding the exemption limits by grossing them up from net to gross in the payroll.

❓ Frequently Asked Questions

How much is the daily meal allowance exemption in 2026?
For income tax and stamp duty it is 300 TL per day (excluding VAT), or 330 TL for payments including VAT. The SSI exemption has also been 300 TL since 17 April 2026.

Why was the SSI meal exemption 158 TL, and what has changed?
For a long time the SSI exemption lagged behind the tax exemption. With Law No. 7577 it was raised to 300 TL from 17 April 2026 and brought into line with the tax exemption.

Is a cash travel allowance exempt from tax?
No. The entire travel allowance paid in cash is subject to tax and SSI contributions. The exemption requires a shuttle service or a public transport card/ticket.

Can the nursery allowance be paid into the employee's account?
No. For the exemption, the payment must be made directly to the taxpayer running the nursery or day-care centre. If it is paid to the employee in cash, the exemption does not apply.

Is private health insurance paid by the employer subject to SSI?
Private health insurance and BES contributions whose monthly total does not exceed 30% of the minimum wage are not subject to SSI contributions. The excess is added to earnings subject to contributions.

What should I do if I exceed the meal limit?
Gross up the excess and add it to the employee's wages; this amount is subject to income tax, stamp duty and SSI contributions.