Communiqué on New Employment Support for Workplaces with Investment Incentive Certificates was Published
Communiqué Publication Date: August 24, 2024
Summary
With the Communiqué Amending the Communiqué on the Implementation of the Decree on State Aids in Investments ("Communiqué"), which was published in the Official Gazette dated August 24, 2024, Additional Insurance Premium Employer Share Support ("AIPESS") was added to the investment incentive practices. This support will be applied within the scope of incentive certificates issued based on applications made on or after June 29, 2021 and is applicable to female and/or young insured individuals.
Important Details
Insurance premium employer share support is an incentive mechanism whereby the government covers a portion of the insurance premiums that employers are obliged to pay in certain investment projects.
- With the Communiqué, this incentive has been expanded under the title of AIPESS to support the employment of young people and women in particular.
- For AIPESS to be applied, investors must apply to the Presidency of the Social Security Institution ("SSI") within 3 months following the end of the period when the insurance premium employer's share support registered in the investment incentive certificate ends. Information on the name of the company, incentive certificate number, workplace registration number, employment number, tax office, tax number, support start period, and the duration of the support regarding the investors who can benefit from AIPESS is reported to the Ministry of Industry and Technology once a month by the SSI Presidency.
- AIPESS will be applied within the scope of incentive certificates issued based on applications made on or after June 29, 2021. The date of application is important, not the date that the incentive certificate is issued.
- AIPESS will be applied to female and/or young insured individuals to be employed. For the employer to benefit from AIPESS, the young insured individual must be over the age of 18 and under the age of 26 on the 1st day of each month in which the support is used.
- For each year of the insurance premium employer's share support period specified in the incentive certificates, AIPESS is provided for 1 month. The amount of AIPESS used cannot exceed the maximum amount of support registered in the incentive certificate, and the number of employees calculated cannot exceed the number of additional employees registered in the incentive certificate.
- After the investors have benefitted from AIPESS for 1 month for each year of the insurance premium employer's share support period specified in the incentive certificates, the application will cease.
The SSI Announces that the Project to Support Registered Women's Employment will Restart
Decision Publication Date: August 17, 2024
Summary
The "Supporting Registered Women's Employment Project" (Women-Up) was launched to improve women's registered employment in Türkiye. On August 17, 2024, the SSI announced that the project would restart in 4 provinces.
Important Details
- The target group of the project is female entrepreneurs with enterprises established after March 5, 2012 with at most 9 employees, and employers who will additionally employ female insured employees.
- Within the framework of the project, 500 female employers in Ankara, 800 female employers in Istanbul, 400 female employers in Aydın, and 400 female employers in Samsun will receive grants up to the net amount of the minimum wage for the additional female insured employees they will employ in their enterprises. A total of 2,100 female employers and 2,100 female employees will benefit from the project. Financial support will be provided for 8 months during the project's implementation period.
- Female employers who would like to benefit from the project will be able to make their pre-applications via the e-government website (e-devlet, in Turkish) as of August 19, 2024.
Amendments Introduced by Law No. 7524
Law Adoption Date: August 2, 2024
Summary
With the Law no. 7524 published in the Official Gazette dated August 2, 2024, the incentive provided to employers regarding retirees within the scope of early retirement was repealed, the SSI short-term insurance scheme premium rate was increased and the lowest pension was increased.
Important Details
A. Incentive Provided to Employers Regarding Retirees within the Scope of Early Retirement Repealed
- In the event that those who retired early despite failing to meet the age requirement for retirement (Emeklilikte Yaşa Takılanlar or EYT in Turkish), started working subject to the social security support premium ("SSSP") in the same workplace they last worked in before the retirement within 30 days following the termination of their employment, the amount corresponding to 5 points of the SSSP employer's share was covered by the treasury.
- Effective from September 1, 2024, this incentive has been repealed.
B. SSI Short-Term Insurance Schemes Premium Rate Increased
- Short-term insurance schemes aim to protect the insured individual and/or their relatives against risks that may arise as soon as the insured individual starts working.
- Short-term insurance schemes can be classified into two main groups, "Occupational Risk" and "Social Risk" insurance schemes, according to their nature.
- The short-term insurance schemes premium rate was increased from 2% to 2.25%.
- Since the regulation will enter into force as of September 2024, the shortterm insurance schemes premium rate will be applied as 2.25% as of September 1, 2024, for insured individuals who receive salary payment between the 1st and 30th days of the month, and as of September 15, 2024, for insured individuals who receive salary payment between the 15th and 14th days of the month. For the August 2024 period and before, previous rate applies.
C. Lowest Pension Increased
- The minimum amount of pension was increased from TRY 10,000 to TRY 12,500.
Circular on Tracking Procedures of Institution Receivables within the Scope of Law No. 6183 was Published
Circular Publication Date: August 14, 2024
Summary
With the Circular on Tracking Procedures of Institution Receivables within the Scope of Law No. 6183 ("Circular") published by the Presidency of the Social Security Institution ("SSI") on August 14, 2024, the procedures and principles regarding tracking and collecting SSI receivables were explained.
Important Details
- As stated in the Circular, the following will become SSI receivables: social insurance and general health insurance premiums, unemployment insurance premiums, administrative fines, late fees and participation fees that are not paid to the SSI on time, as well as stamp taxes to be collected from withholding and premium service declarations submitted to the SSI in accordance with Stamp Tax Law No. 488, housing subsidies under Law No. 3320, savings incentive deduction and contribution amounts under Law No. 3417, contributions to education under Law No. 4306 and special transaction taxes under Law No. 4481 that have not yet been collected although their relevant legislations have been repealed.
- The procedures for tracking and collecting these receivables will be carried out in accordance with the provisions of Law No. 6183 on the Procedure for Collection of Public Receivables.
- The Circular also emphasized that legal entities are jointly and severally liable with their assets, and that board members, senior executives, officials, and legal representatives are jointly and severally liable with their personal assets, together with employers for premiums and receivables related to premiums not paid on time.
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