Turkish Labor Law
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Law on Amending Military Service Law and Some Other Laws, No. 6661 has been issued in Official Journal No. 29606, dated 27 January 2016 and is in effect as of 1st January 2016.
We informed you recently, the article 17 of above said (colloquially known) bag law thatarranges theprocedures and principles of benefiting from minimum wage incentives is accepted in Parliament’s General Assembly.
English version of LAW ON AMENDING MILITARY SERVICE LAW AND SOME OTHER LAWS, No. 6661, dated 14/1/2016,ARTICLE 17 is provided below.
ARTICLE 17– The following provisional article is appended to Social Security and General Health Insurance Law No 5510, dated 31 May 2006.
“PROVISIONAL ARTICLE 68- (1)
For the employers who employs insured that subject to long term insurance branches within the scope of item (a),paragraph one, Article 4 of this Law, the following amounts, after multiplied by 3,33 TL, will be deducted from employers’ SSI premiums due in the current month and will be covered by the Treasury throughout 2016;
a) The amount of insured’s total premium covered days declared in Monthly Premium And Service Documents which are submitted in the current month of 2016, on condition that not exceeding the total premium covered days of the insured whose earnings subject to premium were declared below daily 85 TL in the Monthly Premium And Service Document corresponding to same month of 2015.
b)The amount of declared total premium covered days of insured who are employed in the establishments registered (taken into scope of Law No. 5510) within 2016.
(2) The amounts covered by Treasury will be collected back with delay fine and default interest from the establishments who are found out to be dealing with fictitious transaction,in order to benefit from incentives;such as closing down an enterprise and opening it under a different name or title or as a business unit; shifting the employees between the establishments with which they have direct or indirect partnership relation in such a way they will be in control of; changing the ownership of a sole proprietorship; ornotifying the employees’ earnings subject to premium less than the actual ones for 2016;and provisions of this article shall not be applied to such establishments.
(3) In case the employers; do not submit their Monthly Premium and Service Documents and do not pay the premiums in time;who, in the investigationsand inspections performed by the officers authorized with audits and checks, are found to be not notified the employed personnel as insured or the notified insured is not working virtually; did not pay the premium, together with the relegatedadministrative fine, delay penalty and default interest debts to Institution (SSI), the provisionsarranged in the first paragraph, item (a) of this article shall not be applied. However, Employers whose administrative fine and delay penalty debts to Institution are suspended and deferred in line with Law on Collection Procedure of Assets No. 6183, will continue to benefit from the incentives.
(4) In the application of first paragraph, item (a), if Monthly Premium and Service Document related to same month of previous yearhad not been submitted, the statements submitted in following first month’s document will be taken as a base.For the workplaces registered (taken into scope of Law No. 5510) before 2015 but not employed any personnel within 2015, the provisions of first paragraph, item shall be applied.
(5) In case the Employer’s premiums to be paid are less than the total incentive to be refunded only the amount of employer’s premium debt will be covered,
(6) In the application of first paragraph, item (a), in lignite and coal mining establishments where the wage cannot be less than double the minimum wage, the amounts of insured’s total premium covered days declared in Monthly Premium and Service Documents which are submitted in the current month of 2016, on condition that not exceeding the %50 of total premium covered days of the insured whose earnings subject to premium were declared below daily 170 TL (85*2) in the Monthly Premium And Service Document corresponding to same month of 2015 will be taken as a base.
(7) Provisions of this article shall not be applicable for the insured who are employed in the positions of Public Administrations within the scope of Public Financial Management and Control Law No. 5018, Chart No. 1.
(8) In the service procurement of public administration specified in (Public Procurement Law) Law No. 4734, 2nd article, first paragraph, items (a), (b), (c) and (4), the incentive covered by Treasury will be deducted from works contractors’ progress payments by the above mentioned administrations, in case the number of personnel are specified in the tender document and it is agreed in the contract that price difference would be paid and all of the weekly workmanship would be used for the administration.
(9) Provisions of above mentioned Provisional Article 68 shall not be applied for the insured whose monthly premium and service documents submitted to Institution (SSI) with delays between the January and December 2016.
(10) Procedures and principles as to the application of this article shall be determined by the Institution (SSI) by means of taking the opinions of The Labor and Social Security Ministry and, The Finance Ministry, and Undersecretariat of Treasury.
