Employment incentives in Turkey serve as vital government supports provided to employers under specific conditions. These incentives are aimed at encouraging employers to hire more employees, expand their workforce, and promote the employment of workers from targeted groups. By alleviating financial burdens and facilitating business operations, these incentives contribute to the overall growth and development of Turkey’s economy.
It is important to note that the information provided in this article is based on the most recent knowledge available and is subject to change. Employers should verify the current incentives and their specific requirements with the relevant official institutions. Additionally, compliance with the relevant laws, including Law No. 5510 on Social Insurance and General Health Insurance, Law No. 4447 on Unemployment Insurance and adherence to the necessary regulations are crucial when applying for these incentives.
Five-Point Discount from Employer’s Share of Invalidity, Old Age, and Death Insurance Contribution
This incentive allows private sector employers to benefit from a five-point discount on the employer’s share (11%) of the insurance premiums for their employees’ invalidity, old age, and death insurance.
To benefit from the incentive, it is required to submit the monthly premium and service document or the monthly tax return and premium service statement within the legal period and to pay the premiums within the legal time frame.
Additionally, there should be no outstanding premium debt or The debt should be structured or placed within an installment plan according to relevant laws, and this structuring/installment arrangement should be ongoing, and there should be no unregistered employees or false employee declarations.
There is no application requirement to apply for this incentive.
Additional Employment Incentive
This incentive is valid for insured individuals hired by private sector employers between January 1, 2018, and December 31, 2023. The legal basis for the incentive is provided by Temporary Article 19 of Law No. 4447.
If the workplace operates in the manufacturing or information technology sector, the incentive can be utilized in the amount of the total insurance and employer contribution calculated based on the insured individual’s base earnings. In other sectors, the incentive is applied in the amount of the total insurance and employer contribution calculated based on the minimum wage.
To benefit from the incentive, the individual must have been hired after January 1, 2018, be registered among the unemployed in the Turkish Employment Agency, and not have been reported to the Social Security Institution in the three months prior to the employment start date. For the employer, the conditions include being a private sector employer, employing the individual in addition to the average number of insured employees in the previous calendar year, submitting the monthly premium and service document within the legal period and paying the premiums within the legal time frame, having no outstanding premium debt or having a structured/installment plan, not employing uninsured workers or making false declarations regarding insured workers. Employers can apply through the e-SGK system.
Premium Discount for Employees Sent Abroad
This incentive allows private sector employers to benefit from a discount equal to five points of the employer’s share (7.5%) of the general health insurance premiums for employees who are sent abroad or temporarily assigned to work abroad.
To benefit from the incentive, it is required to submit the monthly premium and service document or the monthly tax return and premium service statement within the legal period and to pay the premiums within the legal time frame.
Additionally, there should be no outstanding premium debt or the debt should be structured/installment plan, and there should be no unregistered employees or false employee declarations.
There is no application requirement to apply for this incentive.
Insurance Premium Incentive Implemented within the Framework of Investment State Aids Decisions
This incentive allows private sector employers who employ insured individuals through investments conducted under the framework of investment state aid decisions to benefit from premium incentives.
To benefit from the incentive, it is required to have obtained the investment incentive certificate and completed the final audit.
It is also necessary to submit the monthly premium and service document or the monthly tax return and premium service statement within the legal period and to pay the premiums within the legal time frame.
The employer should have no outstanding premium debt or the debt should be structured/installment plan, no overdue tax debts, and an application should be made for e-Borcu Yoktur (no debt) activation.
Additionally, there should be no unregistered employees or false employee declarations.
There is no application requirement to apply for this incentive.
Insurance Premium Incentive for Youth and Female Employment and Employment of Insured Individuals with Vocational Certificates
This incentive allows private sector employers to benefit from a discount in the amount of the employer’s share of the insurance premium calculated on the basis of the insured individuals’ earnings for each insured individual hired until December 31, 2023.
To benefit from the incentive, the insured individual must have been hired between March 1, 2011, and December 31, 2023, be over 18 years old, not have been registered in the previous six-month period, and work actively.
For the employer, the conditions include being a private sector employer, employing the individual in addition to the average number of insured employees, having no outstanding premium debt or having a structured/installment plan, and submitting the monthly premium and service document or the monthly tax return and premium service statement within the legal period and paying the premiums within the legal time frame.
The duration of the incentive varies depending on the age and vocational qualification of the insured individual. It is set at 24-48 months for individuals with vocational certificates, 24-36 months for individuals who have received vocational and technical training, and 24 months for individuals without the specified qualifications.
There is no specific application requirement to apply for this incentive. The identification process can be carried out through the “e-SGK/Employer System/Incentives and Definitions” section on the website www.sgk.gov.tr.
Insurance Premium Incentive for Employment of Disabled Individuals
This incentive allows private sector employers who employ 50 or more insured individuals within the same province to benefit from a discount equal to the full amount of the employer’s share of the insurance premium calculated on the basis of the minimum wage for their disabled employees.
To benefit from the incentive, it is required to employ disabled individuals, submit the monthly premium and service document or the monthly tax return and premium service statement within the legal period, and have paid the premiums.
There is no specific application requirement to apply for this incentive. The identification process can be carried out through the “e-SGK/Employer System/Incentives and Definitions” section on the website www.sgk.gov.tr.
Insurance Premium Incentive within the Scope of the Law on Support of Research, Development, and Design Activities
This incentive allows businesses engaged in research, development, and design activities to benefit from a discount equal to half of the employer’s share of the insurance premium calculated on the basis of the salaries of their R&D/design personnel.
To benefit from the incentive, it is required to submit the monthly premium and service document or the monthly tax return and premium service statement within the legal period, have R&D/design personnel, and have no outstanding premium debt or have a structured/installment plan.
There is a specific application requirement to apply for this incentive. The mentioned documents must be submitted to the social security provincial directorate/social security center to which the workplace is affiliated.
Insurance Premium Incentive for Cultural Investments and Ventures
This incentive allows employers who hold a cultural investment certificate or a cultural venture certificate and are corporate taxpayers to benefit from a discount in the employer’s share of the insurance premiums calculated on the basis of their employees’ earnings.
To benefit from the incentive, the employer must be a corporate taxpayer, hold a cultural investment or venture certificate, have no outstanding premium debt or have a structured/installment plan, and submit the monthly premium and service document or the monthly tax return and premium service statement within the legal period.
There is a specific application requirement to apply for this incentive. The cultural investment or venture certificates must be submitted to the social security provincial directorate/social security center to which the workplace is affiliated.
Insurance Premium Incentive for the Employment of Unemployment Benefit Recipients
This incentive allows private sector employers who hire individuals receiving unemployment benefits to benefit from a discount in their insurance premiums at certain rates.
To benefit from the incentive, the individual must be hired, be eligible to receive unemployment benefits, the employer must employ the individual in addition to the number of insured individuals reported in the previous six-month period, and the monthly premium and service document or the monthly tax return and premium service statement must be submitted within the legal period.
There is a specific application requirement to apply for this incentive. The identification process can be carried out through the “e-SGK/Employer System/Incentives and Definitions” section on the website www.sgk.gov.tr.
Insurance Premium Incentive for the Employment of Participants in Vocational Training Programs
This incentive provides insurance premium incentives to private sector employers who hire individuals who have completed vocational training programs.
To benefit from the incentive, the insured individual must have completed a vocational training program, been hired after April 23, 2015, be between 18 and 29 years old, and be employed in the field related to the completed vocational training program.
For the employer, the conditions include being a private sector employer, employing the individual in addition to the average number of insured employees in the previous calendar year, submitting the monthly premium and service document or the monthly tax return and premium service statement within the legal period and paying the premiums within the legal time frame, having no outstanding premium debt or having a structured/installment plan, and not employing uninsured workers.
The duration of the incentive varies depending on whether the workplace is in the manufacturing industry or other sectors. In workplaces in the manufacturing industry, individuals who have completed vocational training programs can benefit from the incentive for 48-42 months, while in other sectors, the incentive can be utilized for 36-30 months.
Insurance Premium Incentive for the Employment of Social Assistance Recipients
This incentive provides insurance premium incentives to private sector employers who hire individuals benefiting from cash-based regular social assistance provided by the Ministry of Family, Labor, and Social Services.
To benefit from the incentive, the individual must have received cash-based regular social assistance at least once within the previous year before being hired, fall within the scope of Article 60(c) of Law No. 5510, be registered among the unemployed in the Turkish Employment Agency, and have been hired after April 26, 2016.
For the employer, the conditions include being a private sector employer, employing the individual in addition to the average number of insured employees in the previous calendar year, submitting the monthly premium and service document or the monthly tax return and premium service statement within the legal period and paying the premiums within the legal time frame, having no outstanding premium debt or having a structured/installment plan, and not employing uninsured workers.
Employers can apply through the e-SGK system.
Insurance Premium Incentive for the Employment of Persons within the Scope of Law No. 2828:
This incentive provides insurance premium incentives to private sector employers who employ individuals falling within the scope of Article 1 of Law No. 2828.
To benefit from the incentive, the individual must fall within the scope of Article 1 of Law No. 2828 and be hired after February 19, 2014.
For the employer, the conditions include being a private sector employer and submitting the monthly premium and service document within the legal period and paying the premiums within the legal time frame.
Employers can apply through the e-SGK system.
Unemployment Insurance Employer Contribution Incentive for Workplaces in the Highly Dangerous Class
This incentive provides a discount in the unemployment insurance employer contribution for workplaces in the highly dangerous class with more than ten employees, according to the Occupational Health and Safety Law No. 6331.
The workplace must be classified in the highly dangerous class, the employer must have more than ten employees nationwide, and no fatal or permanent disability work accidents should have occurred within the past three years.
The workplace must have an approved and ongoing occupational health and safety service registered with ISG-KATIP and employ an occupational safety specialist and a workplace physician.
The incentive provides a 1% discount in the employer contribution for the unemployment insurance, starting from the following calendar year, for a period of three years.
Applications for these incentives are usually made through the e-SGK system. However, it is important to follow the current regulations and check the official website of the Social Security Institution for the application process and details.
Minimum Wage Support
based on temporary article 93 of Law No. 5510, the amount to be determined by multiplying the daily rate of 13.33 Turkish liras for the months/periods of January to June 2023, subject to meeting the necessary conditions specified in the law, is offset against the social security premiums to be paid by these employers to the Institution, and this amount is covered by the Unemployment Insurance Fund. The support amount is 13.33 TL per day, totaling 399,90 TL per month. Conditions for benefiting from the support:
- Submitting the monthly premium and service document/tax declaration within the legal period to the Institution and paying the premiums within the legal time frame.
- Making declarations above the number of insured individuals in the month of support utilization for long-term insurance branches covered by Article 4, Paragraph 1 (a) during the months/periods of January to December 2022, with the monthly premium and service document or tax declaration.
- The employer should have no outstanding debts or the debts should be structured or installment payments should be made in accordance with various laws, and this structuring/installment plan should be ongoing.
Restrictions
Based on the article 14 of the Supplementary Provision of Law No. 5510, Employers who are found, through court decisions or inspections, to have not reported their employees as insured or to have reported insured individuals without actually employing them, are subject to the following restrictions:
Initial detection results in a one-month restriction, while subsequent detections falling under the prohibition scope result in one-year restrictions for each detection.
They are ineligible for premium incentives, support, and discounts specified in Article 81, Paragraph 1 (ı) and (i) of Law No. 5510, Article 81, Paragraph 2, Article 2 of the Supplementary Provision of Law No. 5510, Temporary Article 10 of Law No. 4447, Temporary Article 15 of Law No. 4447, Temporary Article 19 of Law No. 4447, and Article 5 of the Supplementary Provision of Law No. 3294.
Calculation of the Total Number of Insured Individuals for the Determination of Prohibited Workplaces:
If the number of individuals found to have been unreported or not employed as insured by the employer, as determined by court decisions or inspections, exceeds 1% of the total number of insured individuals employed at the same workplace, or if it is below 1% but exceeds five individuals, a one-month/one-year restriction will be imposed on the respective workplace.
