Employment Incentive of the Act No. 6111, is one of the most important social insurance premium incentives applied in Turkey. The incentive has started to be implemented in the year 2011 in order to increase the participation and employment of women, youth and people with vocational training in the workforce, to encourage the creation of new employment, to encourage vocational and technical education, and to increase the employee’s quality and effectiveness. The incentive in question is implemented with the Provisional Article 10 added to the Act No. 4447 and with the Article 74 of the Act No. 6111 adopted on 13.02.2011.
With the Employment Incentive of Act No. 6111, private sector employers have been provided the opportunity to cover the entire insurance premium employer’s share calculated over their earnings based on insurance premiums for the insurance holders they hired between the dates of 01/03/2011 and 31/12/2023. The premiums calculated in this way will be covered by the Unemployment Insurance Fund of Republic of Turkey.
This incentive is only for the private sector and public institutions and organizations cannot benefit from this incentive. Likewise, employers undertaking procurement and construction works with public tenders and employers undertaking procurement and construction works pursuant to international agreements cannot benefit from this incentive during the work period subject to the tender.
Conditions for Benefiting from the Employment Incentive of the Act No. 6111
It would be correct to evaluate the conditions required to benefit from the Additional Employment Incentive of the Act No. 6111, both for the employer and for the insured.
Benefit conditions for the employer are as follows:
- The Concise and Premium Service Statement must be submitted to the Social Security Institution within the legal period.
- Premiums must be paid within the statutory period.
- Unregistered insured should not be employed in the workplace.
- The employer should not owe premiums, administrative fines, and related late fees and penalties.
- If the employer has debts to the Social Security Institution, these debts must be structured or committed to be paid in installments.
- The duration of benefiting from the incentive varies according to men and women, documents held and age of the insured.
The conditions for the benefiting from the incentive for the insured person are as follows:
- The insured must have been employed between 01/03/2011 and 31/12/2023.
- The insured must be over 18 years old.
- The insured should not be employed as unregistered.
- The recruited insured must be unemployed in the 6-month period preceding the date of employment.
- The insured should be employed as an addition to the average insured number of the workplace (within the last six months period).
While the condition of being older than 18 years of age is primarily sought for female insured persons, the age requirement of 18-29 is sought for male insured persons who will benefit from the incentive. Although there is no requirement to be registered with the Turkish Employment Agency for male insured persons over the age of 29, there is an additional 6 months incentive opportunity for this insured if he is registered.
The Amount of the Incentive of the Act No. 6111
The insurance premium incentive introduced by the Temporary Article 10 of the Act No. 4447 is calculated over the earnings of the insured subject to premium. All of the employer’s share of the insurance premium calculated over the premium earnings of the covered insured is within the scope of the incentive. 5 points of the employer’s share will be covered by the Treasury of the Republic of Turkey and the remaining parts will be covered by the Turkish Employment Agency.
The implementation period of the Employment Incentive of the Act No. 6111 has been extended until 31/12/2023 by the President’s Decision published in the Turkish Official Gazette dated 29 December 2022 and numbered 32058.
Thus, the period of benefiting from the Employment Incentive of the Act No. 6111 has been extended until the last day of the calendar year of 2023.
