Incentives Management
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Incentives Management

Considering the costs of companies, one of the most important cost item is the personnel cost. The state has been developing a number of implementations to increase the participation to employment and towards the sustainability of the employer’s costs that will occur when a new employment is needed.

Since the most important cost instrument in this area is the insurance premiums paid to the social security institution; a large number of insurance premium discounts has been put into practice by legal regulations as an incentive which are conditioned like youth employment, women employment and employment increase.

Below are the explanations of some of the most frequently used incentives in which we also provide service.

 

Additional Employment Incentive (17103 and 27103)

It is applied within the scope of Provisional Articles 19 and 21 of the Law No. 4447.

  • In order to benefit from the incentive, the requirements for the insured are as follows;
    Not having an insurance for more than 10 days during the period of three months before the month they are employed in,
    Being unemployed as registered to İş-kur,
    They have to be employed in the private sector between 01.01.2018 and 31.12.2020.
  • In order to benefit from the incentive, the requirements for the workplace are as follows;
    Being a private sector employer,
    The insured should be employed as an addition to the average of the monthly premium and service documents or withholding, premium and service returns submitted by the employer of the insured in the calendar year prior to the year of the insured’s employment,
    Notification of monthly premium and service documents to SSI within the legal period,
    Payment of insurance premiums within the legal period,
    Not having any insurance premium, unemployment insurance premium, administrative fine that are legally overdue and any delay fine or late fee related to these,
    There should not be any finding that the employed personnel is not notified as insured or the notified insured is not working virtually,
  • Incentive Amount
    The amount of the incentive is calculated with 2 different methods according to the sector in which the business is operating.
    In the case where the private sector workplaces operate in the manufacturing or information sector, all the premiums to be paid for the gross income amount shall be covered within the scope of incentive, provided that it does exceed the amount calculated by multiplying the daily gross minimum wage and the number of days that the insured is going to pay premium.
    In the case where the company operates in other sectors, all the premiums to be calculated on the gross minimum wage of each insured that is additionally employed, shall be covered within the scope of the incentive.
  • Duration of the Incentive
    The duration of the incentive is 12 months for each insured that is employed between 01.01.2018 and 31.12.2020. However it shall be applied for a period of 18 months in case the insured is a man older than 18 and younger than 25 years of age, a woman older than 18 years of age or a disabled person registered to İşkur.
  • Additional Rules
    The workplaces that are included in the scope of the law between 01.01.2018 and 31.12.2020 and the ones that were registered before but did not employ insured within the year in which the average number of insured is calculated, can benefit from this incentive for 12 or 18 months from the third month following the month in which the first insured’ statement is given after 01.01.2018.
    One shall not benefit from the other premium incentives, support or discounts for the same insured within the same month that benefited from the incentive.
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Additional Employment Incentive with No. 6111

Article 74 of Restructuring of Certain Receivables and Amendments in the Law of Social Insurance and General Health Insurance and Certain Other Laws and Decree Laws With No. 6111 have been rearranged with the provisional article 10 that is included in the Law No.4447.
 
  • In order to benefit from the incentive, the requirements for the insured are as follows;
    Having found a job between 01.03.2011 and 31.12.2020,
    Being older than 18 years old,
    Being unemployed during the six-month period prior to employment,
    Being employed as an addition to the average number of insured personnel
  • In order to benefit from the incentive, the requirements for the workplace are as follows;
    The insured should be employed as an addition to the average of the monthly premium and service documents or withholding, premium and service returns submitted by the employer of the insured in the 6 months prior to the insured’s employment,
    Notification of monthly premium and service documents to SSI within the legal period,
    Payment of insurance premiums within the legal period,
    Not having any insurance premium, unemployment insurance premium, administrative fine that are legally overdue and any delay fine or late fee related to these,
    There should not be any finding that the employed personnel is not notified as insured or the notified insured is not working virtually,
  • Duration of the Incentive:
    For 6 additional months if those that have vocational qualification certificates or completed a workforce training course are employed while registered as unemployed at the Turkish Employment Organization,
    For 12 months for those who, while working within the scope of paragraph (a) of Article 4 of Law no. 5510, obtain a vocational qualification certificate or complete a secondary or higher education degree program after the coming into force of this article,
    For 6 months for those older than 18 years of age who does not have vocational qualification certificates or not completed a workforce training course and who are employed while registered as unemployed at the Turkish Employment Organization.


The incentive provided by this article shall be applied by taking into account the principles stated in this article, over the employer shares’ rate to the insurance premiums that remains after the subparagraph (ı) of Article 81 of Law No. 5510 is applied.


The 2 incentives included here are the ones that are most advantageous and have the most frequent application areas.
There are many incentives and regulations towards employee costs like 6645, 5746, 14857 etc.
Our company evaluates the conditions of the companies that it provides service and carries out consultancy and practices regarding all these incentives.
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