Legal News

Entitlement to Jobseeker's Allowance Eased

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One of the main eligibility condition for jobseeker’s allowance “the requirement of 120 premium paid days prior to unemployment” has been amended as “the requirement of being under employment contract within120 days prior to unemployment”.

As a result unemployed persons will not have to be uninterruptedly working within 120 days before they lost their job, instead having been under an employment contract in the mentioned period will be enough.

WHAT 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.

Employee, employer and state makes unemployment insurance premium contribution to the Unemployment Insurance Fund, with the following rates applied to employee's monthly gross wage;

  • Employee 1%,
  • Employer 2%
  • State 1% (on behalf of employee).

Employer is required to deduct the above unemployment premiums, and declare and pay them to the Social Security Institution together with social security premium contributions on a monthly basis.

  • Retired personnel are not subject to unemployment insurance premium and don't benefit from unemployment salary.

ARE FOREIGN EMPLOYEES INCLUDED IN THE SCOPE OF UNEMPLOYMENT INSURANCE?

Yes. Legally employed foreigners are also subject to unemployment insurance premium in case they are working against wage under an employment contract, and are entitled to unemployment salary.

CONDITIONS OF BENEFITING?

First of all, reason of leaving employment is very important.

Workers who lost their job against their own wish (not resigned without unjust cause) and without any fault on behalf of will be eligible for unemployment salary by satisfying the following requirements:

  • Being under employment contract within120 days prior to unemployment
  • 600 days of contributions must be paid in the preceding 3 years of employment.

WHERE AND WHEN TO APPLY?

  • Worker should apply within 30 days as of termination of employment contract to the nearest İŞKUR (Turkish Employment Agency) unit personally or online.
  • In case of not applying within 30 days, except the force majeure, delayed period will be deducted from benefiting periods.
  • İŞKUR, after assessing the application, deposit the money to beneficiary’s account until the end of the month following the date unemployed entitled to unemployment pay.
  • Unemployment salary may be collected from post offices.

Tax Exempt Daily Allowance 2019

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Daily Allowance is the money paid to employees in daily basis while they are working away from their workplace whether within the same country or abroad.

Tax exempt daily allowance amounts are determined by General Directorate of Budget and Fiscal Control in line with Travel Expense Law No.6245 twice a year.

01.01.2019-30.06.2019 DOMESTIC TAX EXEMPT DAILY ALLOWANCE AMOUNTS
Gross Salary (TRY) Daily Allowance (TRY)
3.284,86 and over 61,50
3.261,35 -3.284,85 51,60
2.974,04 -3.261,34 48,15
2.608,37 -2.974,03 45,20
2.163,68 -2.608,36 39,85
2.163,67 and less 38,75

The maximum daily allowances payable for business travel outside Turkey are as follows:

(GROSS SALARY AMOUNTS TRY)
Countries and Currencies II.Column III.Column IV.Column V.Column VIColumn VII. Column
3.284,86 and over 3.261,35-3.284,85 2.974,04 -3.261,34 2.608,37 -2.974,03 2.163,68 -2.608,36 2.163,67 and less
USD.(USDDollar) 182 146 124 117 110 93
Germany(Euro) 164 131 111 105 99 83
Australia (Aud) 283 227 192 181 171 143
Austria(Euro) 166 132 112 106 100 84
Belgium(Euro) 161 128 109 103 97 81
Denmark (dkr) 1.238 988 838 791 746 627
Finland(Euro) 148 119 100 95 90 74
France (Euro) 160 127 108 102 96 81
Holland (Euro) 156 125 106 100 94 80
England(Pound) 115 91 78 74 69 59
Ireland (Euro) 155 124 105 99 94 78
Spain (Euro) 158 126 107 101 95 80
Swiss(sek) 1.359 1.085 919 867 819 687
Switzerland(chf) 283 226 192 181 171 143
Italy(Euro) 152 122 104 98 92 77
Japan (jpy) 31.405 25.127 21.325 20.118 18.901 15.914
Canada (cad) 244 195 165 156 147 125
Kuwait(kvd) 50 40 35 33 31 25
Luxemburg(Euro) 161 128 109 103 97 82
Norway(nok) 1.193 952 808 762 719 604
Portugal(Euro) 155 124 105 99 93 78
Saudi Arabia (Suudi A. riyal) 617 492 418 395 372 313
Greece(Euro) 158 126 107 101 95 80
Kosovo(Euro) 123 98 83 78 74 63
Other EU Count. (Euro) 127 101 86 81 76 65
Other Countries(USD Dollar) 157 125 106 100 95 80

SSI ADMINISTRATIVE FINES FOR 2019

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Administrative fines to be applied by the Social Security Institution (SSI) have been increased in 2019 in parallel with the 26% minimum wage hike. Amounts of the fines for the violations specified in Article 102 of Social Insurance and General Health Insurance Law No. 5510 are as follows.

VIOLATION

TRY

Notification of NEW STARTERS

  • Not notifying the new starters within the stated time period or in format and procedure set forth by the Institution.

Administrative fine equal to the minimum wage for each employee:

In case the declaration is submitted within 30 days after the legal time period, and paid within 15 days following the notification from SSI, ¼ of the minimum wage: 639.60

2,558.40

  • For each new starters who are found, by the public bodies/officials and courts, that are not notified to Institution.

Administrative fine equal to two times the minimum wage for each employee:

5,116.80 

  • In case it is found out that the notification is not submitted again within one year in the case stated above.

Administrative fine equal to five times the minimum wage for each employee:

12,792.00

In case the WORKPLACE NOTIFICATION is not submitted to SSI/SGK within the legal period, or in accordance with the format or procedure determined by the Institution, below administrative fines shall be applied.

  • For those obliged to bookkeeping on the basis of balance, the amount of three months minimum gross wage.

7,675.20 

  • For those obliged to keep other books, two months minimum gross wage.

5,116.80 

  • For those not obliged to keep any book, one months minimum gross wage.

2,558.40

In case the MONTHLY PREMIUM AND SERVICE DECLARATIONS are not submitted in time or in the format determined by SSI below administrative fines shall be applied.

  • If the document is original, provided that the amount is not over two times of the monthly minimum wage,

Administrative fine equal to one fifth of the minimum wage forper registered insurance holder

511.68

upper limit

5,116.80

  • If the document is an attachment, provided that the amount is not over two times the monthly minimum wage,

Administrative fine equal to one eighth of the minimum wage per insurance holder registered in each attached document:

319.80 

upper limit

5,116.80

  • If the document is an attachment, in case information and documents proving that the insurance holders worked less than thirty days are not submitted to the Institution within due time for monthly premium and service document or in case submitted information and documents are not considered valid by the Institution, monthly premium and service document is prepared by the Institution, sua sponte, for periods declared less than thirty days,

Administrative fine equal to  half of the minimum wage for each employee:

1,279.20 

upper limit

5,116.80

  • In case it is found out, by the public bodies/officials and courts, that insurance holders who have not communicated, or notified incompletely, their services or earnings to the Institution, independent of the facts whether the document is original, is an attachment or is prepared by the employer, or not,

Administrative fine equal to two timesof the minimum wage for each employee:

    5,116.80

Administrative fine equal to two times the minimum wage shall be applied for each month attributed to incomplete workmanship amount determined not to be communicated to the Institution, based on reports prepared by inspection and control officers authorized to examine books and documents.

5,116.80

To individuals who do not completely fulfil the obligation of presenting the workplace books, records and documents to the Institution officers charged with inspection and control duties, upon their requests, without any force majeure, within fifteen days, in spite of Institution's written warning, or/and in case the books are uncertified.

  • Administrative fine equal to twelve times the monthly minimum wage shall be applied for those who are obliged to keep books based on balance sheet principle,

30,700.80

  • Administrative fine equal to six times the minimum wage shall be applied for those who are obliged to keep other books,

15,350.40

  • Administrative fine equal to three times the minimum wage shall be applied for those who are not obliged to keep books

7,675.20 

  • In case of invalid records,  even the above mentioned documents presented in time, administrative fine equal to half of the minimum wage for each employee:

1,279.20

Workplaces that notified the occupational codes contrary to the facts, an administrative fine equal to 1/10 of monthly gross minimum wage for per employee will be imposed.

255.84

Upper limit

5,116.80 

Labor Law Administrative Fines for 2019

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Administrative fines to be applied according to Labor Law No. 4857 are increased 23.73% in 2018, according to revaluation rate determined for the new year. Amounts of the fines for the violations specified article 98 to 107 are as follows.

ViolatedArticle

Penalty Clause

VIOLATION

Amount of Fine / TRY

Revaluation Rate 23,73%

3

98

Not notifying the setting up or taking over an establishment, or the changes in the nature of business, or permanently closing down an establishment, to the regional directorate of labor. (Same for the subcontractor)

26.027,00

5

99/1-a

Making discrimination based on language, race, sex, political opinion, philosophical belief, religion and sex or similar reasons

219,00

7

99/1-b

Acting in violation of provisions of temporary employment relationship for each employee

 366,00

8

99/1-c

Not informing the employee about working conditions in case there is no written contract for each employee.

219,00

14

99/1-c

Violating the “work on call and remote working” principles for each violation

219,00

28

99/1-d

Violating the obligation to arrange a work certificate for the leaver, or writing incorrect information on this certificate for each employee

219,00

29

100

Dismissal of employees in contravention of the provisions of collective dismissal for each employee.

857,00

30

101

Violating the obligation of employing disabled (or ex-convict/not applicable to private sector workplaces) for each disabled who isn’t employed.

 3.250,00 

32

102/a

Deliberately failing to pay the full wages of employee, entitled under Labor Law, or in the collective agreement or the employment contract for each employee and each month.

236,00

32

102/a

Failing to pay the minimum wage in full fixed by the commission, and not paying the wage and other benefits such as bonus etc. through bank account despite the fact that it is stipulated in law, for each employee and each month.

236,00

37

102/b

Failing to provide employees with payslips

857,00

38

102/b

Imposing fine on employee’s wage unlawfully

857,00

52

102/b

In establishments where the percentage wage method is practiced, the employer is under the obligation to submit a document showing the general total of each account slip to an employee representative elected by the employees; failing to fulfill this obligation

857,00

41

102/c

Failing to pay the employee overtime wages; failing to allow the employee to use the free time to which he is entitled within six months; and does not obtain the employee’s approval for work at extra hours. 

 416,00

56

103

Splitting the annual paid leave in contravention of regulations per employee.

416,00

57

103

Not paying the full amount of annual leave for each employee.

416,00

59

103

Any annual leave remuneration due to, but not yet drawn by an employee, must be paid to him or to other persons entitled on his behalf, upon the termination of his employment contract for any reason, at the wage rate prevailing on the date of termination. Acting against this provision for each employee.

416,00

60

103

Failing to implement in full the provisions of the Regulation on Annual Leave” (Not letting the employee to use his annual leave days completely) for each employee.

416,00

63

104

Acting in contravention of provisions of working hours stated in law

2.292,00

64

104

Acting in contravention of provisions related to compensatory work, for each employee.

416,00

68

104

Not allowing the rest breaks stated in law.

2.292,00

69

104

Having the employees work over 7.5 hours at nights

2.292,00

71

104

Acting contrary to provisions related to working age and prohibition of child work

2.292,00

72

104

Employing boys under the age of 18 and women irrespective of their age on underground or underwater work

2.292,00

73

104

Employing children and young employees under the age of eighteen on industrial work during the night

2.292,00

74

104

Employing female employees during the pre and after birth periods, and not allowing them to have unpaid leave granted in the law

2.292,00

75

104

Not arranging personnel files for each employee working in the establishment

2.292,00

76

104

Not complying with the provisions of “Regulation on Working Hours”

2.292,00

90

106

Performing employment services without procuring the permit from İŞKUR (Turkish Employment Agency)

20.822,00

92/107

107

During an inspection it shall be the duty of the employer, his representatives, the employees and any other persons concerned to attend whenever summoned by the authorities or officials responsible for inspection, to give them any information requested, to present for their inspection and, if necessary, to hand over all relevant documents and records, to provide them with every assistance in the exercise of their functions, and to comply, without any attempt at evasion, with all relevant orders and requests received in this connection. Acting contrary to these provisions, and preventing them to perform their duties.

 20.822,00 

2019 Fines For Illegal Employment of Foreigners in Turkey

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International Workforce Law No. 6735, published in Official Gazette numbered 29800 dated 13 August 2016, has replaced the former Work Permit Law No 4817 and introduced many changes in regard to work permit regulations of foreigners as well as new amounts of administrative fines for illegal employment of foreigners and for failure to fulfill the obligation of notification.

Administrative fines arranged in Article 23 of the new law are increased 23.73%, in parallel with the revaluation rate determined for the new year. You can find the previous and current amounts in the table below:

ADMINISTRATIVE FINES

   2018 / TRY

   2019 / TRY

For employer or employer representative who employs foreigners without work permit (for each foreigner).

7.130,00

8.821,00

For foreigner working dependently without a work permit

2.851,00

3.527,00

For foreigner working independently without a work permit

5.704,00

7.057,00

For foreigners working independently or with a permanent work permit and employers of foreigners who do not fulfill their obligation of notification according to Article 22 in due course of time for each foreigner. (Obligation of notification is detailed below.)*

475,00

587,00


Administrative fines shall be paid within one month as of the date of its notification.

In case of repetition, administrative fines will be doubled.

Foreigners working without a work permit shall be notified to Ministry of Interior in order to be deported.

Employer or employer representative is obliged to bear the costs of accommodation charge, expenses for return to their country and health expenses when necessary, related to foreigners who have no work permit, and their spouse and children if any.

WHAT IS THE OBLIGATION OF NOTIFICATION STIPULATED IN ARTICLE 22 OF LAW NUMBER 6735?

The employers of foreigners and holders of independent or permanent work permit are obliged to notify the Ministry; on the start and termination of work in the scope of work permit and work permit exemption, and on the cases that require cancellation of work permit and work permit exemption within fifteen days.

ADMINISTRATIVE FINES TO BE APPLIED FOR UNINSURED

It should be noted that the foreigners who are employed without a work permit, naturally would not be insured and not notified to SSI. In case of employing uninsured employees, SSI administrative monetary fines amounting up to many times of monthly gross minimum wage (number of months personnel employed uninsured x 2 x monthly gross minimum wage) will be applicable to employers. In addition, not notifying a new starter with an employment statement to the SSI is a noncompliance that may be fined up to 5 times of the monthly gross minimum wage.

Child and Family Allowance Exemption Announced

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Child and Family Allowance Exemptions to be applied between 01.01.2019 - 30.06.2019 are as follows:

 

SSI

Child Allowance Exception / SSI

₺51.17

Family Allowance Exception / SSI

₺255.84

 

Income Tax

Family Allowance Exception / Income Tax (Government)

₺278.69

Child Allowance Exception/Income Tax (Over 6)

₺32.65

Child Allowance Exception/Income Tax (Ages 0-6)

₺65.30

Regional Incentive Extended

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Bölgesel Teşvik Uygulamasında Son Durum

The regional incentive, which has been applied since 2013 in order to eliminate the regional imbalance, is now extended until 31 December 2019.

As per Presidential Decree No. 305 issued in Official Gazette dated 25 December 2018, 6 point social security premium support for the companies established in 1st, 2nd and 3rd  group regions will continue to be implemented until the end of 2019.

Sample Incentive Calculation

Employee's earning subject to SSI premium    : 3,000

SSI Base                    : 3.000

SSI Employer contribution (without incentive)    : 3.000 x %20.5 = 615

SSI 5% Treasury incentive deduction        : 3.000 x %5 = 150

SSI Regional incentive deduction        : 2.558,40 x %6 = 153,50

SSI Employer contribution (with incentive)     : 615 – (150 +153.50) = 311.50

In order to benefit from the incentive, the workplace should be established in the regions below:  

(I) Group

(II) Group

(III) Group

Afyon

Adıyaman

Ağrı

Amasya

Aksaray

Ardahan

Artvin

Bayburt

Batman

Bartın

Çankırı

Bingöl

Çorum

Erzurum

Bitlis

Düzce

Gümüşhane

Diyarbakır

Elazığ

Giresun

Hakkari

Erzincan

Kahramanmaraş

Iğdır

Hatay

Kilis

Kars

Karaman

Niğde

Mardin

Kastamonu

Ordu

Muş

Kırıkkale

Osmaniye

Siirt

Kırşehir

Sinop

Şanlıurfa

Kütahya

Tokat

Şırnak

Malatya

Tunceli

Van

Nevşehir

Yozgat

Bozcaada İlçesi

Rize

Gökçeada İlçesi

Sivas

Trabzon

Uşak

Disability Tax Allowance 2019

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2019 Engelli Vergi İndirimi Tutarları

Disability tax allowance is intended to decrease the income tax amount of the disabled employees. The amounts are determined depending on degree of disability by government every year in accordance with Article 31 of Income Tax Law No. 193.

The employees may also benefit from this allowance for their disabled spouses and dependent children.

Monthly amounts to be deducted from taxable income base in 2019 are as follows:

  • 1st Degree Disabled Employee, who lost at least 80% of the working capacity will be benefiting from tax allowance of 1,200 monthly,

  • 2nd Degree Disabled Employee, who lost at least 60% of the working capacity will be benefiting from tax allowance of 650 monthly,

  • 3rd Degree Disabled Employee, who lost at least 40% of the working capacity will be benefiting from tax allowance of 290 monthly. 

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