In case of death of an employee the employment contract will be terminated automatically. As a consequence of employee’s death there will be three type of payment.
1. FUNERAL BENEFIT
Funeral benefit is a lump-sum payment made to the right holders of the insurance holder who deceased when;
- receiving incapacity income due to work accident or occupational disease or
- receiving permanent incapacity income, invalidity, duty disability or old - age pension.
- minimum 360 days of invalidity, old - age and survivors insurance premiums should be notified for the deceased.
Funeral benefit shall be granted to the insurance holder's spouse, if not to children, if not to parents, if not to siblings.
Funeral benefit is paid by SSI.
2. SEVERANCE PAY
In case the deceased employee worked at least one year at the workplace his/her dependents will be paid a severance pay equal to last 30 days’ gross wages for each full year of employment. Date of death will be taken as a base.
3. DEATH INDEMINTY
Death compensation is paid to right owner of the employee who died while his/her employment contract is continuing.
- Reason of death is not important; it can be work accident or suicide.
- Employment contract can be open ended or fixed term.
- In calculation of the death compensation the last salary will be taken as a base.
- For employee whose length of service is less than 5 year, one month’s salary will be paid as compensation.
- For employee whose length of service is more than 5 year, one month’s salary will be paid as compensation