2019/07 SSI Circular Regarding the Salary and Premium Support

The Article 8 of the 7166 numbered Law on Amending Social Services Law and Other Laws which is published on the 22.02.2019 dated and 30694 numbered Official Gazette, has made an addition to the Art. 19 of the 4447 numbered Law on Unemployment Insurance as follows:

“In case the ones who are employed between 01/02/2019 – 30/04/2019 as an addition to the number of insurant on a month of which at least insurance declaration is made of the long-term insurance branches under clause 1/(a) of the art. 4 of 5510 numbered Law with monthly premium and service document in 2018 January – December period, shall be employed for nine months period as of the employment date without termination of the labor contract with a valid reason, the amount that is found with multiplying the premium support and premium payment date number for three months period including the date of employment with 67,36-TL, shall be provided to the employer as a support. This salary support to the employer shall be set off from the debts to Social Security Institution.”

The above-mentioned additional clause (clause 14) has entered into force as of 01.02.2019 whilst the 2019/07 numbered SSI Circular has brought some explanations regarding the procedure and principles of the implementation of this regulation, as follows:

• In order to benefit from this salary and premium support provided for the insurant and the employer:
  • The insurant shall be employed between 01/02/2019 and 30/04/2019,
  • The person to be employed shall be registered to İşkur as unemployed,
  • The employee shall be employed as an addition to the total insurant number on a month in which at least declaration is made subjected to long term insurance branches on 2018,
  • The employee should be employed for nine months as of the employment date without employer’s termination of the labor contract (except for the termination with valid reasons).
• In the calculation of the at least working month prompt to long term insurance branches on 2018, the insurants registered in 1, 4, 5, 6, 13, 14, 20, 24, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 52, 53, 54, 55 numbered document types shall be considered. Moreover, in calculating total insurant number to be benefit from salary and premium support the document types with 7, 19, 22, 42, 43, 46, 47, 49, 50 shall not be considered. You may reach the related document types in Turkish here.
• In order to benefit from salary and premium support, the labor contract of the insurants shall not be terminated for 9 months period with the below-mentioned reasons; otherwise the support amount to be benefitted shall be refunded with penalty for delay:
  • 1-Employer’s termination of the labor contract with probation period
  • 4- Employer’s termination of the labor contract of indefinite duration without providing any valid reason,
  • 5- Expiry of the labor contract of definite duration,
  • 15- Collective redundancy,
  • 17- the closure of working place,
  • 19-end of season
  • 20- end of campaign,
  • 22-other reasons
  • 25- labor contract termination by the employee because of employer’s behaviors against moral rules
  • 34- termination due to the transfer of the working place, job or alteration on the job area.
• In case the termination of the labor contract of those employed under this support with “16-the reason of transferring the employee to other workplace of the employer before the end of the labor contract”, the employee shall be complete the nine months period at the other workplace to be transferred as of the date of employment.
• The Deduction of the Salary Support to be Provided from the Unemployment Insurance Fund, From the Debts of the Employer to the Institution;
  • The support amount shall be deducted from the debts to the institution,
  • If there left any amount, this amount won’t be refund and continue to deduct from the debts to the institution.
  • In case the closure of SSI document of the workplace, the support amount to be benefitted shall be cancelled if there is no other registered workplace or debt left.
  • The support amount shall be deducted as of the following month.
• The Transactions related to the Sub-contractors or the Workplaces that have Sub-contractors;
  • Not having any premium debt, administrative fine etc. of an employer because of both its own insured employees and insurants of sub-contractor,
  • Not having any premium debt, administrative fine etc. of a sub-contractor because of its own insured employees,

Shall be evaluated separately in average calculation of the insurants to be employed under salary and premium support for both employers and sub-contractors.

You may reach the related Circular in Turkish here.