28.08.2026 15:21
The Court of Cassation's decision to consider regular and continuous tips as part of wages closely concerns the rights of employees in the restaurant, cafe, hotel, and tourism sectors. Social Security Chief Expert İsa Karakaş stated that regular tips can be included in the severance pay calculation, and if they are not reported to the Social Security Institution (SGK), employers may face administrative fines exceeding 66 thousand lira per month and could lose minimum wage support.
The new era of tipping concerns many topics, from employees' severance pay to overtime wages, from SSI premiums to retirement pensions. According to the established practice of the Court of Cassation, tips that are regular and continuous can be considered part of the wage depending on the circumstances of the specific case.
Social Security Chief Expert İsa Karakaş issued important warnings regarding the practice, which particularly concerns employees in restaurants, cafes, hotels, and the tourism sector.
TIPS MAY BE INCLUDED IN SEVERANCE PAY
Karakaş drew attention to the evaluation of the 9th Civil Chamber of the Court of Cassation and stated that tips paid continuously to workers should be taken into account in the calculation of severance pay.
Karakaş stated that the local court did not include tips in the severance pay calculation, but the decision was overturned by the Court of Cassation.
Accordingly, it is important that the tip is continuous and that it is demonstrated in the specific case that it is an element of the wage system.
WARNING OF FINES EXCEEDING 66 THOUSAND LIRAS FOR THOSE WHO DO NOT NOTIFY SSI
One of the most important topics concerning employers is the SSI notification.
Karakaş stated that tips paid to workers are not exempt from SSI premiums and that regular payments should be included in the premium-based earnings and reported to SSI.
Stating that sanctions may be faced if tips are not reported, Karakaş said, "If tips have not been reported to SSI for several months, an administrative fine exceeding 66 thousand liras is applied for each month."
Karakaş also stated that fines could increase further if a records inspection is conducted.
GAVE AN EXAMPLE OF A TIP OF 3 THOUSAND 400 LIRAS
Karakaş also gave an example based on a tip of 3 thousand 400 liras not being reported to SSI.
Stating that in such a case, regardless of how many employees there are in the workplace, the entire minimum wage support the business benefits from could be cancelled by SSI, Karakaş said that previously paid support could also be recovered with interest.
Therefore, he pointed out the importance of recording tips, especially those collected by the employer and distributed regularly to employees.
OVERTIME CALCULATION WILL BE DIFFERENT
The evaluation of tips within the scope of wages is also important in the calculation of overtime.
In the established practice of the Court of Cassation, for workers working on tips or the percentage method, a different calculation is made for the guaranteed wage and the tip portion.
According to Karakaş's account, in the overtime calculation, the normal, i.e., guaranteed wage, is evaluated with a coefficient of 1.5, while the portion arising from tips is evaluated with a coefficient of 0.5.
IT MAY ALSO AFFECT RETIREMENT PENSIONS
Karakaş stated that adding regular tips to wages and reporting them to SSI could also affect the retirement pensions employees will receive in the future.
Pointing out that by adding tips to the premium-based earnings, the income reported to SSI will increase, Karakaş stated that this would contribute to increasing the pensions employees will receive upon retirement.
Karakaş evaluated, "We can now say that the tip is neither a favor, nor a gift, nor a form of assistance. It is directly a wage, a salary."
MINIMUM WAGE DETAIL FOR THOSE WORKING ONLY ON TIPS
Another issue Karakaş drew attention to was workers who agree to work only on tips.
According to Karakaş, if the employer and the employee have agreed only on tips and the amount obtained falls below the minimum wage, the employer must make up the difference and report it to SSI.