Turkish government, has taken some steps to prevent unemployment by providing SSI premium and tax support for the private sector employers in 2017. We will try to briefly explain these arrangements in three questions; also detailed information can be found in the links provided at the end of every article.
Employing Registered Unemployed of İŞKUR
Q - What is the nature of the support?
A - Private sector employers will be refunded daily 22,22 TRY of total SSI premiums to be paid for each personnel who are employed amongst the registered unemployed of İŞKUR until 31st December 2017; the withholding tax applied on minimum wage will be set-off from the withholding tax return after the minimum living allowance is applied. Besides, stamp tax deducted from minimum wage will not be declared and not paid.
Q – What is the total amount of support?
A – Total amount will be up to monthly 773,41 TRY. The cost of the gross minimum wage to employers of such personnel will be equal to net minimum wage, i.e. 1.404,03 TRY instead of 2.177,44 TL with a cutback of 773,41 TRY.
Q – Is it only applicable only for the minimum wage earners or for every employee?
A - The supports are applicable for all personnel employed amongst the registered unemployed of İŞKUR regardless of their monthly salaries, but it is applied to only for the part of monthly salary equal to 1.770,50 TRY (monthly gross minimum wage).
Postponement of SSI Premiums
Q – What is the nature of support?
A - Private sector employees who benefit from Treasury’s minimum wage support may postpone their December 2016, January, February 2017 premium payments to 2017 October, November and December without paying any interest.
Q – How to calculate the amount to be postponed?
A - The premium covered days that taken as a base in benefiting from the minimum wage support will be multiplied by daily 60,00 TRY to find the base amount of earnings subject to premium in the said moths, and all premiums calculated on this base amount may be postponed.
The total amount to be paid and the amount that can be postponed will be automatically calculated In the SSI’s related platform and the employer will have the choice to pay whether all of the premium debts or postpone the part of payment of the amount calculated as above.
Q – Which SSI premiums can be postponed?
A – All premiums, including SSI and unemployment insurance contribution of both employer and employees may be postponed as it is seen in the example below.
Premium covered days to be benefited from minimum wage support in December 2016: 355 days
Base amount of earnings subject to premium: 355 days *60 TL = 21.300 TRY
Amount of premium payments that may be postponed to October 2017: 21.300 TRY *34,5% (total premiums) =7.348,50 TRY.
For detailed information:
Minimum Wage Support
Q – Will minimum wage support continue in 2017?
A - Employers had received daily 3,33 premium refund throughout 2016 for each worker whose wage were notified under daily gross 85 TL (monthly gross 2.550.00 TL) in 2015, and for each personnel employed in new enterprises registered within 2016. The same arrangement will be applied in 2017; however the amount to be refunded is not yet determined.
Q - What could be the amount of support?
A – It was about daily 3,33/ monthly 100,00 TRY in 2016; this year it is expected to be about daily 4,00, monthly 120,00 TRY.
The support will be applied by setting-off the support amount from the premium debts of the related month in SSI’s platform.
Q – Who Cannot Benefit from the Support?
A - Employers who;
- do not submit their Monthly Premium and Service Documents and do not pay the premiums in time,
- in the investigations and 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, administrative fine and delay penalty debts to Institution (SSI), cannot be benefiting from the above incentives
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.