Turkish Labor Law
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The third circular has been issued on the support for employing registered unemployed of İŞKUR (Turkish Employment Agency) and the scope of the support is widened.
Circular 2017/10 (dated 1st March 2017)
As we informed you before, private sector employers are refunded daily 22,22 TRY of total SSI premiums to be paid for each personnel who are employed amongst the registered unemployed of İŞKUR until 31st December 2017, as per the Cabinet Decree/687, issued in Official Gazette No. 29974, dated 9th February 2011.
Also, for the above described employees, the withholding tax applied on minimum wage is set-off from the withholding tax return after the minimum living allowance is applied. Besides, stamp tax deducted from minimum wage are not declared and not paid.
The supports are applicable for all personnel employed in this way, regardless of their monthly salaries, but it is applied to only for the part of monthly salary equal to 1.770,50 TRY (monthly gross minimum wage). As a result of these incentives, cost of the gross minimum wage to employers of such personnel are equal to net minimum wage, i.e. 1.404,03 TRY instead of 2.177,44 TL with a cutback of 773,41 TRY.
For benefiting from the support, the unemployed;
- should not be included among the registered insured personnel of a company in their SSI premium and service documents within three months period preceding the working start date
- should be employed as an addition to the number of insured personnel declared in the December 2016 SSI premium and service documents of the workplace.
SSI Circular No. 2017-17, (dated 4th April 2017)
Three month period has reduced to ten days: “the person to be employed is not notified as insured more than 10 days in the workplace’s SSI premium and service documents within three months period preceding the working start date”
SSI Circular No. 24 (dated 6th July 2017)
This circular arranges the support for employing the unemployed between 1st June 2017 and 31st December 2017. General principles are kept the same, however following points are changed.
- In case no Monthly Premium and Service Document were submitted for January 2016, workplace will benefit from the support for all employees who are in the scope of the said support, provided that fulfilling the other requirement.
- For workplaces registered between 1st June 2017 and 31st January 2017, and the for the workplaces registered before 2017 but not notified any insured to SSI during 2016 will benefit from the support for all employees who are in the scope of the said support and employed between 1st June 2017 and 31st January 2017.
Who Cannot Benefit from the Premium Support?
Employers who;
* do not submit their Monthly Premium and Service Documents and do not pay the premiums in time,
* in the investigations and inspections, are found to be not notified the employed personnel as insured or the notified insured is not working virtually,
* did not pay the premium, administrative fine and delay penalty debts to Institution (SSI), cannot be benefiting from the above incentives.
However, Employers whose administrative fine and delay penalty debts to Institution are suspended and deferred in line with Law on Collection Procedure of Assets No. 6183, will continue to benefit from the incentives.
Beneficiary employers of these supports are not benefiting from the other premium incentives, supports or deductions and withholding tax supports of similar nature for the same employees within the same period. Besides, SSI premiums should be declared and paid in time
