Minimum Wage Support Amount Increased for Unionized Workplaces

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In the unionized workplaces the daily amount of earnings subject to premium that will be taken as a base in the minimum wage support is increased from 110,00 TRY to 164,70 TRY.

“A Unionized workplace” is the workplace in which collective agreement provisions are applied.

As is known, employers are receiving daily 3,33 TRY 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. (Cabinet Decree: 2017/9865, issued in the Official Gazette on 22 Feb. 2017). 

Now with the Cabinet Decree, 2017/10326, issued in the Official Gazette on 20^th May 2017, numbered 30071; starting from 1^st May 2017 daily base amount for government support is increased to 164,70 TRY in the unionized workplaces.

Employers of these workplaces will be receiving daily 3,33 TRY premium refund throughout 2017 for each worker whose wage (earnings subject to premium) were notified under daily gross 164,70 TRY (monthly gross 4.941 TRY) in 2016.

Comparison Table

	IN NON-UNIONIZED WORKPLACES	IN UNIONIZED WORKPLACES
Daily Earning Upper Limit	110,00	164,70
Monthly Earning Upper Limit	3.300,00	4.941,00
Amount to be multiplied by Total Premium Covered Days	3,33	3,33

Transitory Article 71 of Law No. 5510 reads as follows;

“For the employers of unionized workplaces who employs insured that subject to long term insurance branches, the following amounts, after multiplied by 3,33TRY, 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 daily 110,00 TRY 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.” 

Now; as of 1^st May 2017, total premium covered days of the insured whose earnings subject to premium were declared below daily 164,70 TRY  will be multiplied by 3.33 in unionized workplaces.  In other words government minimum wage support will also be applied to daily earnings (declared in 2016) between 110.00 and 164,70.