Historical promotion of employment

ADEM ORHUN

Having big potential for investors with its young population, Turkey is offers very attractive incentives to increase production and employment. Under certain incentives that reduce the employer’s premium and tax burden, the wages of workers are also covered by the state in certain situations. These incentives that are going to continue until December 2020 will also give advantage to foreign investors.

Many attractive employment incentives are being pursued in order to increase the dynamic work environment in Turkey. The new incentives offered in Februaryby legal regulations will continue until the end of 2020. New incentive schemes offer employers an advantageous opportunity if employees are taken into education and then placed on the job.

Here are the main incentives for new employment:

PREMIUM AND TAX

For every new worker, the state covers insurance and tax for 12 months. This is extended to 18 months for women, disabled, and males aged 18-25 years old. It is also extended to 18 months to support further employment in the manufacturing and informatics sectors (this support will continue until December 2020).

Short work allowance: In a situation where the employer has to reduce working hours due to economic reasons, the state compensates for the hours lost for a 3 month period. In this situation, an application is made to İŞKUR. Wages are paid from the Unemployment Insurance Fund for three months.

MINIMUM WAGE

Minimum wage support: If there are less than 500 workers in a business, the state contributes 150 TL per worker for 12 months.

For businesses that have over 500 workers, the state contributes 101 TL per worker for 12 months.

In 2019 this support will be provided to those who increase their number of workers in comparison to the previous year.

Continuous support for regular payments: 5 percentage points of the employer’s share of social security premiums are covered by the government. This rate is 128 TL per month.

Additional support for development: In addition to the 5 point reduction in social security premiums, a 6-point support will also be applied in 51 provinces and two districts that are prioritized in terms of development.

QUALIFIED WORKFORCE

Full education support for a qualified workforce:Job training is provided via the provincial directorates of the Chamber of Industry, İŞKUR and Borsa Istanbul. Providing both theoretical and practical training, these courses can take up to 8 months. In line of the demands of employers, the programs are designed to establish a qualified workforce. Participants are given 2,021 TL in support for 8 months.
Retained use of incentives:Apart from the month the application was made, incentives are offered for 5 months prior to the application date. In addition, changes requested for incentives are also taken into consideration.

ON-THE-JOB TRAINING

First on-the-job training and then employment support: During training at the workplace, participants are paid a monthly payment of 2,021 TL for 3 months. This extends for 6 months in the manifacturing, industry and IT sectors. A payment of 2,210 TL is made for a 9-month period for 18-29 year olds in areas such as cyber security, coding, and renewable energy.

The participants’ general health insurance occupational accident and occupational disease premiums are covered by the government. Females who attend the on-the-job training programs in the manufacturing sector are provided with an additional child care support of 400 TL per month.

Employers that have at least two insured employees can benefit from the employment support provided after the on-the-job training.

Employers can request a number of participants that constitute up to 30 percent of their workforce. The employer must give a 50 percent employment commitment to those on-the-job training.

23 Temmuz 2019 Salı

Etiketler : English