3 Months Additional Employment Support for Employers

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A new employment support for employers has been introduced by the Law No. 7662 “Amendment on the Social Services Law,” issued in The Official Gazette dated 22 February 2019.

WHICH EMPLOYERS BENEFIT FROM THE NEW EMPLOYMENT SUPPORT?

  • Support will be applied as an additional employment incentive like the former employment incentives.

  • Minimum number of employees notified between January – December 2018 will be taken as base,

  • and the support will be applied for the personnel, who are employed in addition to this minimum number between 1 February and 30 April 2019.

  • Employers, who want to benefit from the support must employ them at least for 9 months as of the date of employment.

  • In case of terminating the employment contracts for a valid reason, employer will continue to benefit from the support.

HOW TO CALCULATE THE SUPPORT AMOUNT?

Premium paid days of the personnel employed in the scope of above said support will be multiplied by  67,36 TRY and the total amount will be set-off from employer’s premium debts, to be covered by the Unemployment Fund.

Example:

Between 1 February and 30 April 2019, 1 person is employed as an addition to last year’s minimum number of employees.

Employee’s salary is 2.558,40 TRY (minimum gross wage) and worked 30 days in the month.

Support amount will be: 30*67,36 = 2020,80 TRY.

As a result, total net amount to be paid to employee will be covered by the Unemployment Fund.

Employer will also continue to benefit from the incentive provided by Law No. 4447, Article 19, which means no SSI premium and withholding tax will be paid within between 1 February and 30 April 2019.

You can get access to detailed explanation of Law No. 4447, Article 19 through the below link:

 http://turkishlaborlaw.com/news/legal-news/590-support-for-additional-employment-extended

A regulation is expected for further application details.

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