Turkey’s Minimum Wage Support Begins In March

turkey-s-minimum-wage-support-begins-in-march

SSI has issued an announcement as regard to application details and starting date of state support on minimum wage on 5th February 2016, stating that the first premium set-off will be in March.

Pursuant to Provisional Article 68, that has been appended to Social Security and General Health Insurance Law No. 5510; employers will be receiving daily 3,33 TL (monthly 100.00 TL) 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 in 2016.

Although the related law has been already issued in Official Journal, with the effect date of 1st January 2016, the business community still has doubts on application procedures, such as start time, notification processes, and whether there will be an application requirement for benefiting from the mentioned support.

In general practice, social security premiums belong to current month are accrued after being declared by submitting a monthly premium and service documents online at the following month, and should be paid to the Institution at the end of the following month latest. 

 

MAIN POINTS OF THE ANNOUNCEMENT

  • The main points of the announcement issued by Presidency of Social Security Institution, Directorate of Insurance Premiums are as follows.
  • Employers are not required to apply for benefiting from the support.
  • Employers who satisfy the conditions specified in the “circular” to be issued in time, will be benefiting from the provisions of the law without needing to take any extra action.
  • As the amount of support will be set-off from the premium debts accrued in the following month, the Treasury support granted for the employed workers on January/2016 too, will be set-off from the premium debts of February/2016. Thus, the set-off will be realized on March/2016
  • Application procedures and principles have been laid out and presented to relevant public institutions’ review specified in Law. After the mentioned institutions’ opinions are received a circular will be issued.
  • As there will be no change in submitting monthly premium and service documents belong to January/2016, and in method of premium payment, submission and payment of the premiums belong to January/2016 will be realized in line with the current practice.

 

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