What is AGI? How is it calculated?

Agi, which is a payment that employees receive every month, is called in addition to or within the salary of the person. Employees receive different payments based on marital status and the number of children. There are many who do not know about this fee that almost everyone receives. There are people who have never even heard of it. It is a payment that is hardly noticeable when included in the salary.

In order to benefit from the network, some conditions must be met. I have researched all the details of this employee’s rightful payment for you. What is AGI? Why is it given? Who can get the network? How much is given? How is it calculated? Who can’t get the net? Is it included in the salary? In this article, you can find the answers to the questions that raise a question mark in your mind about the network and all the things you are curious about. What aid unemployed young people?

What Does Agi Mean?

Agi is the abbreviation of Minimum Living Allowance. It is a system that fulfills the tax envelopes applied in the past. Until 2007, employees were collecting receipts from all their purchases, putting them in envelopes, submitting them to the tax office, and receiving tax refunds. In 2007, this order was changed and the tax refund was abolished. It was replaced by the Agi system.

Workers who are over the age of 16 and are insured can benefit from Agi. It is paid to the employee by the employer on behalf of the state. The employer is exempt from income tax up to the amount of AGI he has paid. In other words, it can be said that the tax paid by the employer is refunded to the employee under the name of AGI. There is no such thing as non-payment because it is a legal right. It changes every year. For this reason, it is recalculated each time a new working year calendar is prepared. However, any change in the minimum wage during the year does not change Agi.

Change of workplace or employer does not affect Agi. In every job, Agi’s payment continues to be received from the month of employment. Among the wages received from more than one employer at the same time, the minimum living allowance is applied by the employer paying the highest wage. If the employer that pays the highest wage is not clear, the employer who will apply the minimum living allowance is determined by the employee himself. What is the 2022 Year of the Tiger? What are its features?

Marital status and especially the number of children directly affect the amount. Minimum Agi is paid to a single employee. It is mostly taken by people whose spouses do not work and who have many children. If the person’s marital status or the number of children changes, the calculation is made again. As of 1 January, 2016, single and working childless persons receive the minimum living allowance included in their salary. If the spouse is not working and there are children, the minimum living allowance is paid separately. This payment is obtained after completing the family notification form, which is popularly called the Agi form. Since the employee’s statement is taken as the basis, the information must be filled in correctly and completely. The form is attached to the employee’s file. In this form, the employee;

  • Name and surname
  • Turkish Identity Number
  • job/job
  • marital status
  • Spouse’s name
  • Spouse’s employment status
  • Number of children
  • Children’s ages

Fill in information such as It is also the employee’s responsibility to update the information in cases such as a change in the job status of the spouse, an increase in the number of children, or divorce. In such cases, new information must be notified to the employer within 1 month. In case of divorce, if both spouses are working, the minimum living allowance is paid to the child from whom the children will be taken care of in terms of social security.

If the employee is not paid because he has a legal right, it is considered an unfair gain and incomplete declaration. The employer is penalized. In case of non-payment of AGI to the employee, the employment contract may be terminated by the employee. An employee who cannot receive the minimum living allowance can also receive severance pay if they have worked for more than 1 year. If you will start working again in case of retirement, you can benefit from the minimum living allowance if the real wage is received. While those with a report or leave benefit from the minimum living allowance, birth, illness, etc. Those who use an unpaid leave cannot benefit from the minimum living allowance since they cannot declare a taxable income. What Are HTTP Status Codes? What are their meanings?

Legally, it is not possible for anyone other than the person, his/her spouse, and children to benefit from the minimum living allowance. The person cannot receive a minimum living allowance payment for his/her parents who stay with him/her and are responsible for his/her care. However, those who take care of their grandchildren whose parents have died and those who take care of their adopted child can benefit from the minimum living allowance. How to Increase Employee Engagement?

Who can benefit from AGI?

  • Real employees subject to real taxation
  • Those who receive the fee specified in Article 61 of the Income Tax Law
  • Insured employees over the age of 16
  • Foreign employees residing in Turkey
  • Foreign employees who have worked in Turkey for more than 6 months according to a work schedule
  • Insured employees who are managers
  • Besides those who trade, those who work with profit in a simple way

Who Cannot Benefit from AGI?

  • Persons charged under another fee
  • Persons working in special services
  • Foreign employees not residing in Turkey
  • Persons working and living in Turkey for less than 6 months
  • People working without insurance

How is Network Calculated?

According to the annual gross amount of the minimum wage;

  • 50% for the employee himself
  • 10% for unemployed and non-income spouse
  • 7.5% for the first and second child, per child
  • 10% for a third child
  • It is calculated as 5% for children of four and more.

The amount obtained by multiplying the amount found as a result of this calculation by 15%, which is the first tranche in income tax, and dividing by 12 determines the AGI that the person will receive monthly. The sum of these rates cannot exceed 85%. Agi’s amount is calculated over the minimum wage. For example, a person with 3 children whose monthly income is 2825 TL and whose spouse is not working and a person with 3 children whose monthly income is 10000 TL and whose spouse is not working receive the same amount of Agi.

The monthly minimum living allowance that the employee can benefit from cannot exceed the monthly tax amount calculated over the monthly minimum wage. Therefore, if it is too much, it is not taken into account. To make an example calculation, the Agi amount of a married person with 1 child, whose spouse is not working; is calculated as 50%+10%+7.5%=67.5%. The person’s annual minimum wage is added up and multiplied by 67.5%. The result found is divided by 12 to calculate the monthly amount to be received.

Who Enters the Status of Non-Working Spouse?

Only actively working spouses are accepted. For example, if the spouse is self-employed, it is considered the non-working spouse in the AGI calculation. A lawyer working in the public sector is accepted from the working class, while a freelance lawyer becomes a non-working spouse. If the spouse does not work, it is checked whether he earns any income. If the spouse is not working but has any rental income, it is not included in the calculation of the minimum living allowance. 7 Common Job Interview Questions and How to Answer Them

2022 Minimum Living Allowance Amounts

Marital statusMonthly Minimum Living Allowance (2022)
Single – Childless375.30 TL
married spouse not working450.36 TL
Married, unemployed with 1 child506.66 TL
Married, unemployed with 2 children562.95 TL
Married, unemployed with 3 children638.01 TL
Married, unemployed with 4 children638.01 TL
Married with 5 children whose spouse is not working638.01 TL
Married spouse working childless375.30 TL
Married, working wife, 1 child431.60 TL
Married, working wife, 2 children487.89 TL
Married wife working with 3 children562.95 TL
Married and working with 4 children600.48 TL
Married and working with 5 children638.01 TL
Married wife working with 6 children638.01 TL

(These amounts cover the dates between 01.01.2022 and 31.12.2022.)

Those who qualify as “children” in the minimum living allowance include those who reside with the employee or are cared for by the employee. Minimum living allowance payments can be taken for children who have not turned 18 years old (for children who have not reached 25 years of age).

Minimum living allowance is one of the legal rights of AGI workers. In addition, the employer must be able to determine the minimum income. In order for the determination to be made correctly, the worker must fill in the Family Status Notification Form, which is issued as the AGI form, with the correct information. Taking into account the marital status of the employee and the number of children, the minimum subsistence portion of all employees over the age of 16 is deducted from the income and excluded from taxation.

It means that the tax-exempt portion is also given to the employee. In other words, AGI is the name of the discount given to the employee and his/her dependents. AGI is a payment made to workers by their employers on behalf of the government. It is deducted from the employer’s income tax. It stays out of the minimum wage. The AGI forms kept in the personnel files of the workers are updated again in cases such as the worker’s marital status changes or having children. It is the employee’s sole responsibility to submit the information in full. So, how is AGI calculated?

How is AGI Calculated?

AGI is calculated over an employee’s gross salary. It may change every year according to marital status and the number of children. The work is done on the number valid at the beginning of the calendar year in which the salary is earned. The calculation is made over the annual gross amount of the minimum wage applied for workers older than 16 years of age in the industry. According to this; 50 percent is calculated for the working person himself, and 10 percent for his spouse who is not working and has no income at the same time.

To calculate separately for each of the children; 7.5 percent applies for the first two children. 10 percent for the third child; for other children, it continues as 5 percent. Let’s explain with an example; The monthly AGI amount paid to a single employee in 2021 is 268.31 TL. An AGI payment of 321.98 TL is made to a married and unemployed employee.

If the employee is married and his spouse is not working, if the employee has one child, 362.22 TL is the amount paid to the employee who has a child. Employees with five children are paid up to TL 456.13. Let’s examine the 2021 AGI table in detail.

  • A single employee receives 268.31TL AGI.
  • An employee whose married spouse does not work receives 321.98 TL AGI.
  • Married, unemployed spouse and one child receives 362.22 TL AGI.
  • An employee with a married spouse who does not work and who also has two children receives 402.47 TL AGI.
  • An employee with a married spouse who does not work but also has three children receives 456.13 TL AGI.
  • An employee with a married spouse and four children receives 456.13 TL AGI.
  • An employee with a married spouse who does not work and who also has five children receives 456.13 TL AGI.
  • An employee who is married and has a working spouse receives 268.31 TL AGI.
  • An employee who is married and has a spouse and one child receives 308.55 TL AGI.
  • An employee who is married and has a spouse and two children receives 348.80 TL AGI.
  • A married employee with a spouse and three children receives 402.47 TL AGI.
  • An employee who is married and has a spouse and four children receives 429.30 TL AGI.
  • A married employee with a spouse and five children receives 456.13 TL AGI.

How Is AGI Calculated If Spouses Work?

If each of the parents in a household works for a fee, their children are only included in the notification of the spouse they are subject to in terms of social security. AGI payment is made for children who are under the age of 18, or those who continue their education, for which the employee is obliged to take care of, who are under 25 years of age.

What Information Should Be on the AGI Form?

The AGI form is also called the family report form. All information declared in the form is considered essential and the form is considered sufficient for notification. The form is usually provided and received by the human resources department. AGI must be paid to the employee in cash, along with his/her salary for that month. When the employee receives his monthly wage, he must have been paid in addition to his wage. AGI is an item clearly stated on a separate line on the employee’s payroll, at the end of all calculations. At the bottom of the calculated net receivable section, AGI is written and totaled. Thus, the net amount that the employee will receive is found. AGI is the legal right of the worker. In addition, the employee must fill out the Family Status Notification Form completely in order for the employer to act with correct information while determining the minimum income. The information received during the completion of this form is the sole responsibility of the worker. Therefore, the employer cannot be held responsible for the lack or inaccuracy of the information given by the employee in this form. AGI forms are kept in the employee’s personnel file. Necessary arrangements are made in cases such as the employee’s divorce, marriage, or having a child. So, what information should be filled in the AGI form?

  • Employee’s name
  • Employee’s TR ID number
  • Employee’s duty
  • marital status
  • Spouse’s name and surname
  • Spouse’s employment status
  • Children’s information
  • Number of children

Who Benefits from AGI?

Full taxpayer real persons, whose working wages are taxed in the real method, benefit from AGI.

Persons who declare their wage incomes that are not subject to withholding with an annual declaration benefit.
Persons who have wage income evaluated within the scope of article 61 of the Income Tax Law benefit from it.

Can Foreigners Benefit From AGI?

If a foreign employee resides in Turkey and resides in Turkey for more than 6 months according to a calendar year, he/she can benefit from AGI.

Who cannot benefit from AGI?

  • Service connoisseurs who tax them according to the other fee scope cannot benefit from AGI.
  • Other real persons who cannot obtain wage income cannot benefit from it.
  • Those who earn wage income according to the scope of limited liability cannot benefit.
  • Persons whose domicile is not in Turkey and who have resided in Turkey for less than 6 months according to a calendar year cannot benefit.
  • Persons whose wages are not deducted from income tax within the scope of another legal provision cannot benefit from AGI.

Who are the Employees Covered by Other Wages?

Who are the employees covered by other wages? An answer to the question is sought. According to this; Information is given in article 64 of the Income Tax Law. The people who work for the tradesmen, whose earnings are determined according to the simple method, are the people who are covered by other wages. Drivers working in private services are also covered by other wages. Construction workers employed by private contractors are also included in this scope. In cases where the real wages of the persons working for the real estate owner cannot be determined, the positive opinion of the Council of State, those included in this scope by the Ministry of Finance, are included in the scope of other wage earners.

Is there a penalty for not paying AGI?

The minimum living allowance not paid in return for the employee’s work is considered an unfair deduction. Therefore, the portion of the tax deducted by withholding up to this amount is seen as under-declared in the withholding tax return. In this case, the unpaid minimum living allowance is considered an under-declared tax in the relevant month. A penalty assessment is made for employers regarding this tax.

Can an Employee Without AGI Pay Get Severance Pay?

If the minimum living allowance is not paid to an employee, the employment contract may be terminated by the employee without waiting for just cause. Thus, a worker who has not received the minimum living allowance is entitled to receive severance pay if he or she works for more than one year.

What is AGI?

AGI is a family discount given to employees. The AGI round added to the salary varies according to the marital status of the working person. Payment is also taken according to the number of children.

How is AGI calculated?

While calculating AGI, it is calculated over the gross salary of the employees and is paid monthly. 50% is calculated for the worker himself and 10% for his non-working spouse. 7.5% is calculated separately for each of the 2 dependent children, 10% for the 3rd child, and 5% for the following children.

Who benefits from AGI?

AGİ Working wages are suitable for full taxpayer real persons who are taxed in a real way. Persons over the age of 16 working at the minimum wage benefit. Employees also get paid for their spouses and children.

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