Business in Turkey

FAQ on Unemployment Benefits in Turkey

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İşsizlik Ödeneği İle İlgili Sıkça Sorulan Sorular 660x330What is Unemployment Benefit?

Unemployment benefit, also called "Jobseekers Allowance" or "Dole," is an allowance granted to insured employees who lost their jobs against their will.  In Turkey, it is simply referred as “unemployment salary” and paid to eligible workers in the scope of mandatory unemployment insurance in line with the Law on Unemployment Insurance No. 4447.

Who are in the scope of Unemployment Insurance?

Briefly, employees working against wage under an employment contract are in the scope of Unemployment Insurance.

Confusion About Sequencing After-Birth Rights

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kadin isci izin

In 2016 working mothers are offered new choices to work half time and/or part time up to some periods of time after birth in addition to existing post-natal leave entitlements, namely 8 weeks maternity leave and 6 months unpaid leave.

This newly introduced arrangement caused some confusion about the sequencing of the post-natal rights, i.e. which one should be used first.

After-birth rights of working women

After the Law No.6663 entered into force, working mothers has the following rights:

  • After the maternity leave (After the maternity leave period stated in the first paragraph of Article 74 of Labor Law,) working women (or the male or female adopter of a child under three years of age) may work half time up to sixty days on first childbirth, one hundred and twenty days on second and one hundred and sixty days for the third child. Insurance premiums and wages corresponding to hours worked will be paid by employer, and insurance premiums and wages for off-hours will be covered by the state through Unemployment Insurance Fund.
  • If the female employee so wishes, she shall be granted an unpaid leave of up to six months after the expiry of the sixteen weeks, or in the case multiple pregnancy after the expiry of the eighteen weeks (After the maternity leave period). This leave shall be granted to one of the married couple or the adopter who adopted a child under three years of age. 
  • After the leave periods set forth in Article 74 of Labor Law, mother or any of the parents may choose to work part time until the first day of the month following the date child’s compulsory schooling begins. If one of the parents is not working, this provision cannot be applied. Same right will be granted to adopters who, solely or together with the partner, adopted a child under three years of age, starting from the date the child is handed over to them.
  • Which one should be used first?

Amnesty for Unregistered Employment

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kacak isci siteEmployer who employs unregistered workers will not be devoid of premium incentives more than one month, and old fines will be pardoned, according to omnibus bill pass through the Parliament.

In current practice employers who, in the investigations and inspections performed by the officers authorized with audits and checks, are found out not notified the employed personnel as insured, or the notified insured is not working virtually (insured falsely), cannot benefit from the incentives for a period of one year. This fine is applied even for the one person employed illegally in the workplace.

How to Calculate Severance Pay?

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Hesap Makinesi

  • Qualified employee shall be paid a severance pay equal to last 30 days’ gross wages for each full year of employment.
  • For a portion of a year, pro rata payment should be made.  
  • In calculation of the last 30 days’ wage, the wage paid and the some contractual and statutory benefits in kind provided by employer shall be taken into account. Also periodical (annually, quarterly etc.) payments such as premium and bonuses will be added in monthly basis.

MINIMUM WAGE SUPPORT AMOUNT FOR 2017 BECOMES CLEAR IN TURKEY

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asgari ucretliAmount of minimum wage support will be monthly 99,99 TRY during the 2017, the same amount applied in 2016, however the minimum daily earnings to be taken as base in the application of support will be 110,00/monthly 3.330,00 TRY, instead of daily 85,00/monthly 2.550,00 TRY.

Employers will be receiving daily 3,33 premium refund throughout 2017 for each worker whose wage (earnings subject to premium) were notified under daily gross 110,00 TRY (monthly gross 3.300,00 TL) in 2016, and for each personnel employed in new enterprises established / registered within 2017. The support will be applied by setting-off the support amount (daily 3,33 TL) from the premium debts of the related month.

WITHHOLDING TAX AND SSI PREMIUM DECLARATIONS COMBINED

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vergi beyannamesiStarting from 1st January 2018 withholding tax returns and SSI e-declarations will be combined in a single form under the name of "Withholding Tax and Monthly Premium Service Document” and submitted only to the tax offices until the 23rd of the following month.

Law No. 6740 had already stipulated that income tax withheld by employer and the SSI premiums should be declared in a single form, and now with the General Communique published in the Official Gazette No 29983, dated 18th Feb. 2017, the procedures and principles concerning implementation of the Law became clearer.

3 Questions / Answers on 2017 Government Supports

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issiz tesvikTurkish 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.

Missing Day Declaration

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Number of working days within a month is considered 30, regardless of the actual number of days the month includes. In other words workdays of January (31 days), February (28 or 29 days) or March (30 days) is the same.  

Social Insurance and General Health Insurance Law Number 5510, Article 3-14 reads as follows;

14) (Amended: 17/4/2008 - 5754/1st Art.) Month: shall mean, for the insurance holders under items (a) and (c) of the first paragraph of Article 4, whose wages are payable on 15th of each month, the time period between 15th of a month and the 15th of the next month, and for other insurance holders, the time period between the 1st of the month and the end of that month, and which is deemed to be thirty days,”

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