Employment incentives offer employers massive subsidies for new hires
Anew campaign targeting 2.5 million jobs in 2019 was launched at The Union of Chambers and Commodity Exchanges of Turkey’s (TOBB) Economy Council on Last week. TOBB sector councils, chambers and exchanges will work in 81 provinces and 1,690 districts to provide the most common participation in the campaign. While the new move is designed to increase employment through public-private sector cooperation, according to the Ministry of Family, Labor and Social Services data, 18 different employment incentive programs have been put into effect with the latest regulations. More than 1.7 million employers and 11 million workers will benefit from these incentives. Lastly, according to the law entered into force before the Parliament closes for its pre-election break, in addition to the number of those covered by social insurance declared by the companies in 2018, premium, tax and wage support will be provided for those employed between February 1 and April 30, 2019 for three months. Employers will be provided with additional support of daily TRY 67.36 per worker for three months.
Some of the incentives that the employers can benefit from are as follows:
► Social Security Institution (SGK) premiums and taxes will not be paid by employers for each new employee added until December 2020 for 12 months. This support is will be for 18 months for the employment of women, the young and disabled. For jobs in manufacturing and the ICT sector, there is a higher amount of premium support.
►The employer who has to temporarily reduce working hours in the workplace will not pay wages for those employees for three months. The wages of those employees will be paid by the state. Applications for short-time work allowances are made through the Turkish Employment Agency (ISKUR).
►For 2019, employers with employees up to 500 will be supplied with monthly TRY 150 minimum wage support for each worker for a period of 12 months. This support will be TRY 101 for employers with more than 500 employees.
►Five points reduction is provided to employers who regularly pay social security premiums.
►An additional Social Security Institution premium discount of 6 points is provided in 51 priority provinces for development.
►Those receiving on-the-job training will be supplied with wage and social security premium support for three months. This support will be 6 months for manufacturing and the ICT sector and 9 months for cybersecurity, coding and renewable energy.
►Within the scope of Vocational Education and Skills Development Cooperation Protocol (MEGIP), in order to prepare a qualified workforce that the business world needs, the fees and social security premiums for training courses arranged up to 8 months will covered by the public.