Yargıtay ruling classifies regular tips as wages in Turkey

A recent ruling by the Yargıtay (Supreme Court of Appeals) has established that regular and continuous tips must be treated as part of an employee's wages. This decision significantly impacts workers in the service sector, including those in restaurants, cafes, and hotels, as these earnings must now be included in calculations for severance pay and overtime.

Social Security Expert İsa Karakaş warned that employers who fail to report these tips to the Social Security Institution (SGK) face severe penalties. Consequences include administrative fines exceeding 66,000 TL for each unreported month and the potential loss of minimum wage support incentives. Reporting tips correctly is also expected to increase future retirement pensions for employees.

Additionally, discussions regarding labor compensation include updated notice period regulations. For 2026, notice periods are determined by seniority: two weeks for those employed under six months, up to eight weeks for those with over three years of service. The court has also set a ceiling on these periods to prevent indefinite extensions in employment contracts.