21 October 2022
What is Incapacity to Work? Under Which Conditions is Temporary Incapacity Allowance (Report Money) Granted?
What is Incapacity to Work?
Incapacity to work; It is the term given for the temporary incapacity to work cases during the rest periods specified in the health reports given by the health institutions authorized by the Social Security Institution (In Turkish), in cases of illness, work accident and maternity of an employee.
What is Incapacity Allowance?
Incapacity to work allowance, it is the allowance paid by the SSI in order to prevent loss of income in cases of work accident, occupational disease, illness and maternity.
In addition, a settlement protocol can be arranged between the Social Security Institution and workplaces. The employee's wage is paid fully by the employer during the period of his sick leave. Then, the temporary incapacity allowance to be paid to the employee by the SGK would be deducted from the premium debts to be collected by the SGK. The related regulation is included in the sixth paragraph of Article 18 of the Law No. 5510 (In Turkish).
What are the Conditions for Temporary Incapacity Allowance?
To receive temporary incapacity allowance, the employee must meet the following conditions:
- The employee, who states that he is incapacitated due to illness, occupational disease, maternity and work accident, must report this situation with a health report issued by doctors authorized by the Social Security Institution.
- The employee who applies for temporary incapacity allowance must have 90 SSI premium days before the report date. This condition is not required for the work accidents.
How and When the Temporary Incapacity Allowance can be obtained?
According to SSI; “The employers must declare electronically if the employees work at the workplace during their rest period. However, for employees to receive temporary incapacity benefits, a declaration by their employer that they are not working at the workplace is not required. After the declaration period has passed, the employees temporary incapacity allowance is paid regardless of whether the declaration is made or not. As of the end of the rest period, the temporary incapacity allowance that the employee is entitled to is transferred to the account in such a way that it can be withdrawn from any branch of the contracted bank.
Social Security Institution makes the temporary incapacity allowance payment to the employee as of the 3rd day of the report. There is no regulation in the law that the payment of the first 2 days of the report will be paid by the employer. In addition, the employees who receive a report due to a work accident are paid by the Social Security Institution for each working day. At the same time, there is no requirement to pay a premium for 30 days and to work for 90 days backwards for these employees.
How is the Temporary Incapacity Allowance Calculated?
Temporary incapacity allowance is calculated by dividing the total earnings subject to premium / SSI base for the last 3 months in the last 12 months period prior to the receipt of the report, by the number of premium days of this last 3 months. While payment is provided for the entire reporting period in occupational accidents, the first two days are not paid in illnesses.
For example:
If an employee has a monthly wage amount / earnings subject to social security premium / SSI base amount of 10,000 TRY and 90 premium days;
10.000,00 × 3 = 30.000,00 TL (3 months SSI Base)
30.000,00 / 90 = 333 TL (Daily SSI Base)
Accordingly, the daily temporary incapacity allowance amount of an employee is calculated as below:
Inpatient treatment payment: 333 / 2 = 166.50 TL (Daily)
Outpatient treatment payment: 333 / 3 = 111.00 TL (Daily)
Should you have any queries or need further details, please contact your customer representative.
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