Business in Turkey

Last submission date of March 2018 declarations will be 24th April

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As is known SSI e-declarations should be submitted to SSI until the end of 23rd of the following month. In case the last submission date coincides with weekends and public holidays the declaration can be submitted on the next working day.

As April 23 is the National Sovereignty and Children’s Day, March SSI premiums can be submitted to SSI until the 24th of April, 23:59.

Retrospective Benefiting from Incentives is Possible! Apply until 31st May 2018

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tesvik gorsel

Omniums bill (colloquially known bag law) No. 7103, issued in Official Gazette No. 30373, dated 27th March 2018, gives the opportunity to benefit from missed incentives retrospectively.  

In recent years Turkish government has launched many premium incentives and supports for encouraging businesses to create new employment.

In the past many employers missed this opportunity due to uncertainties about or lack of knowledge of the regulations, and for various reasons.

The article 70 of above mentioned Law has appended the Additional Article 17 to the Social Security and General Health Insurance Law No. 5510, giving a new chance to employers to get back the missed incentives.

Can a Retired Employee Entitle Severance Pay?

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emekli kidem tazminati

Person working after retirement has the same rights regarding severance, notice pay and annual leave as the other employees have.

A retired employee may work against wage under an employment contract by paying social security support contribution.

In case such an employee’s employment contract terminated by employer without just cause, or he himself terminates the contract with valid reason he will be be entitled to severance and notice pay.

Also, the employees who are first time insured before 9th October 1999 may choose retirement with 3600 premium paid days in 15 years insurance period and are entitled to severance pay. These employees don’t need any right cause to terminate the employment contract. All they have to do to present a document to the employer from the social security agency proving that they have worked for the mentioned period and resign.

Severance Pay For Retired with 3600 Premium Days and 15 Years of Service

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15 yil 3600 gun sarti

Employees who are first time insured before 9th October 1999 may choose retirement with 3600 premium paid days in 15 years insurance period and are entitled to severance pay. These employees have to present a document to the employer from the social security agency proving that they have worked for the period.

Conditions for entitlement to severance pay are arranged in article 14 (still in effect) of Former Labor Law No. 1475.

Persons who completed the period of insurance except age (including 3600 days, 15years) to qualify for an old age pension and then voluntarily leave the job will receive severance pay.

RETIREMENT CONDITION BY 3600 PREMIUM DAYS AND 15 YEARS

By completing 3600 premium days and 15 years of insurance period until 23rd May 2002; women at the age of 50 and men at the age of 55 can be retired.

After 24th May 2002 a gradual system is applied.

Persons completed the 3600 premium days within 15 years insurance period between the dates:

24.05.2002-23.05.2005 men 56 women 52,

24.05.2005-23.05.2008 men 57, women 54

24.05.2008-23.05.2011 men 58, women 56,

24.05.2011-23.05.2014 men 59, women 58,

after 24.05.2014 men 60 women 58 may be retired.

HOW MANY TIMES “3600 DAYS/ 15YEARS” CAN BE USED FOR SEVERANCE PAY?

In case the employee has completed the mentioned period and days he doesn’t have to wait the above said ages. It would be enough for the employee to get a document from SSI proving the situation and resign to receive severance payment, i.e. he doesn’t have to actually retire.

Until the employee satisfies the age condition and get actually retired, he can;

  • continue to work in the same or other workplaces, and
  • claim severance when he leaves the employment by submitting the above said document from SSI, provided that he completed one year of service in the workplace
  • can use this entitlement as many as possible.

There will be no notice period for this kind of employees and no notice pay is paid.

Can a Resigned Employee be Paid Severance?

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istifa eden isci

Conditions for entitlement to severance pay are arranged in article 14 (still in effect) of Former Labor Law No. 1475; and resignation of an employee isn’t one of the reasons for entitlement. For detailed information please visit our website:

http://turkishlaborlaw.com/faq/311-conditions-of-severance-pay-in-turkey

In practice employers may choose to make payment (while there is no obligation to pay it) to a resigned employee as a gratitude for his ex-services, and they usually wrongly call it severance pay. However, any payment made under any name for a resigned employee must be treated differently than severance pay from the point of SSI premium and income tax liability.

How to Calculate Overtime Work and Works at Extra Hours?

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fazla mesai hesabi 

Overtime is the work which exceeds forty-five hours a week, and remunerated in hourly basis with higher rates.

As per the Labor Law, No: 4587, Article 41, overtime work may be performed for purposes such as the country’s interest, the nature of the operation or the need to increase output.

In cases where the weekly working time has been set by contract at less than forty-five hours, the work last up to forty-five hours weekly considered as works at extra hours.

Social Security Agreement Between Turkey and Korea

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Türkiye ve Kore Sosyal Güvenlik Anlaşması

Every country has its own legislation as regard to international workforce; however provisions of social security agreements are applied instead of domestic legislation.

Social Security Agreement between Turkey and Korea had been signed in Ankara at 1st August 201211, and has been entered into force at 1st June 2015 by The Cabinet Decree 2015/7939 published in the Official Gazette No. 29439.


Persons to Whom the Agreement Applies

This Agreement shall apply to any person who is or who has been subject to the legislation of either Contracting party, and to the dependents and survivors of such a person within the meaning of the applicable legislation of either Contracting State.

Equal Treatment

In the application of the legislation of a Contracting party, any person mentioned above shall receive equal treatment with the nationals of that Contracting party.

For full text of the agreement in Turkish, Korean and English click here:

http://iskanunu.com/portal/wp-content/uploads/2018/02/20150206-3-1-T%C3%BCrkiye-Kore-SGA.compressed.pdf,

How to Calculate Missing Days in February

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subat ayi eksik gun

February is a special month from the point of actually worked and non-worked days of employees within the month.

In Turkey’s legislation, number of working days within a month is considered 30 regardless of the actual number of days in the month. In other words, workdays of January (31 days), February (28 or 29 days) or March (30 days) is the same.  Thus, fully worked employees’ insurance days must be declared as 30 days.

An employee may be absence from work for various reasons (sickness, unpaid leave, disciplinary penalty). Normally these days are deducted from 30, however in February unworked days should be deducted from 28 (or 29 in every four years period).

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