Government’s minimum wage support, aimed to reduce the increased employment cost arising from %30 minimum wage hike in 2016, will continue during the 2017, according to omniums bill (colloquially known bag law) which is accepted in the Parliament’s related commission and is being discussed in the General Assembly at present.
Employers have received daily 3,33 premium refund throughout 2016 for each worker whose wage (earnings subject to premium) were notified under daily gross 85 TL (monthly gross 2.550.00 TL) in 2015, and for each personnel employed in new enterprises established/registered within 2016. The support is applied by setting-off the support amount (daily 3,33 TL) from the premium debts of the related month.
SUPPORT AMOUNT WILL BE DETERMINED BY COUNCIL OF MINISTERS FOR 2017
Same arrangement will be applied in 2017 as it is set forth by above mentioned bill, which is expected to get through Parliament before the end of the year. Council of Ministers will be authorized to determine the amount to be refunded.
Provisional Article 71 that will be appended to Social Security and General Health Insurance Law No. 5510 reads as follows,
“For the employers who employs insured that subject to long term insurance branches, the following amounts, after multiplied by the daily amount determined by Council of Ministers, will be set-off from employers' SSI premiums to be paid in the current month and will be covered by the Treasury throughout 2017;
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 2017, on condition that not exceeding the total premium covered days of the insured whose earnings subject to premium were declared below the daily amount determined by Council of Ministers in the Monthly Premium And Service Document corresponding to same month of 2016.
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 2017.”
CONDITIONS OF BENEFITING
- In the event of Monthly Premium and Service Document belong to same month of 2016 had not been submitted, following first month’s document will be taken as a base.
- For the workplaces registered (taken into scope of Law No. 5510) before 2016 but not employed any personnel within 2016, the same support will be applied as the ones registered in 2017.
- 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.
- The incentives will be valid only for the year 2017.
WHO CANNOT BENEFIT FROM THE 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; 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; or notifying the employees’ earnings subject to premium less than the actual ones for 2017.
- And provisions of this article shall not be applied to such establishments.
- 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. 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.
- Provisions of above mentioned Provisional Article 71 shall not be applied for the insured whose monthly premium and service documents submitted to Institution (SSI) with delays between the January and December 2017.
APPLICATION IN MINING COMPANIES
In lignite and coal mining establishments, where the wage cannot be less than double the minimum wage, the support amount will also be double.
EXPLANATORY CIRCULAR EXPECTED
Supports and incentives on minimum wage are exceptional arrangements and usually cause confusions in application; we will inform you as soon as the circulars related to implementation are issued by SSI.