In recent days, the Additional Employment Incentive brought by Law No. 6111 is on the radar of many employers and employer representatives. The employment incentive requires a deep understanding of legislation and follows laborious calculation processes and conditions to benefit. While a few changes have been made in the recent years, the last change has been brought by Law No. 7103 and a retrospective incentive has been offered to employers once again.
What is the Employment Incentive Regulated by Law No. 6111?
The Social Insurance and General Health Insurance Law numbered 6111, whose premium subsidy was adopted on 13.02.2011, and Social Insurance and General Health Insurance Law and the Law Amending Some Other Laws and Decree Laws were rearranged with the 74th article of and the temporary article 10 added to the Law No. 4447. The aim of the additional incentive is to support inclusion of women and young people in the workforce, to encourage creation of new employment, and to promote vocational and technical education, to increase the work quality and effectiveness in the workplace.
Private employers were provided with the opportunity to cover the entire insurance premium employer share, calculated on their insurance premium-based earnings, from the Unemployment Insurance Fund for the insured worker who was hired between 01.03.2011 – 31.12.2020.
What are the Conditions to Benefit from this Incentive?
Employers who can benefit from 6111 Incentive;
- Monthly premium and service document should be given to the Authority within the legal period,
- Premiums must be paid within the legal period,
- Unregistered insured should not be employed,
- If indebted, the debt must be structured or divided into installments,
- There should not be any premium, administrative fine and related delay hike and penalty debt,
Duration of the incentive may vary based on gender, age, and documents.
Also institutions and organizations falling under the scope of the second paragraph of Article 30 of Law No. 5335 cannot benefit from this incentive.
Employers who undertake procurement and construction work under Law No. 2886, 4734 and Article 3 of Law 4734, and employers who undertake procurement and construction work in accordance with international agreements cannot benefit from this incentive during the tender period.
The insured employees who can benefit from 6111 Incentive:
- Must have been hired between 01.03.2011 and 31.12.2020,
- Must be over 18 years old,
- Must be unemployed for 6 months before the date of employment,
- It should be added to the average number of insured.
For insured women, it is required to be over the age of 18, whereas men need to be 18-29 years old to benefit from the incentive. Although for male insurers older than 29 years old, it is required to be registered to ISKUR, an opportunity of incentive is offered again for 6 months.
Retrospective 6111 Incentive
The Social Security Institution has entered into legislative amendments on the additional employment incentive that encourages the employment of young, female and professionally qualified insured people. With the Circular no. 2015/10 that the Social Security Institution issued on 18.03.2015, it was stated that the service documents given to benefit from retrospective incentive will not be processed and only those with service documents issued prior to 18.03.2015, the date of the circular, will be put into process.
The “Law on Amendment of Tax Laws and Certain Laws and Decree Laws” numbered 7103 adopted on 21.03.2018, provides employers with the opportunity to benefit from retrospective incentives.
In order to benefit from retrospective incentives, you can contact Datassist for a secure and accurate calculation of incentives.
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