Many people in our country are eagerly awaiting the announcement of the minimum wage rates at the end of the year, as they do every year. When the minimum wage is announced, several allowances and payments may increase or decrease accordingly. Changes to the minimum wage also affect unemployment benefits. In short, the impact of the minimum wage on unemployment benefits is significant.
The minimum wage is the amount paid to workers for a day’s work that is intended to cover basic needs such as food, housing, clothing, transportation and healthcare at a minimal acceptable level. Unemployment benefits are payments made to cover basic needs while a person is between jobs. There are specific conditions to receive unemployment benefits. If an employer terminates an employee’s contract, the employee can apply for and receive unemployment benefits. If a workplace closes and employees lose their jobs, they are also eligible for unemployment benefits. A person who worked under a fixed-term employment contract and is left without work when the contract expires may be entitled to unemployment benefits. However, if a worker resigns voluntarily, they are not eligible to apply for or receive unemployment payments.
The minimum wage for 2016 was announced at the start of that year. A 300-lira increase in the minimum wage brought relief to many families. That raise had a noticeable effect on unemployment benefits. With this increase, unemployment benefit amounts changed as follows: the lowest unemployment benefit rose from 509 TL to 659 TL, and the highest benefit rose from 1019 TL to 1318 TL.
As shown above, the minimum wage had a clear effect on unemployment benefits. But what exactly are unemployment benefits and how does one apply?
How to Apply for Unemployment Benefits
To apply for unemployment benefits, a person must submit an application to İŞKUR no later than 30 days after the termination of their employment. When an unemployment application is submitted, the person is registered as a job seeker. This registration enables access to services such as counseling, placement in suitable positions when available, and vocational training opportunities.
Amount of Unemployment Benefits
The unemployment benefit, which increases when the minimum wage rises, is calculated based on the insured person’s gross earnings subject to premiums over the last four months. The daily average gross earnings are taken and 40% of that daily average forms the basis for the benefit. Consequently, the monthly unemployment benefit cannot exceed 80% of the monthly gross minimum wage.
Duration of Unemployment Benefit Payments
The duration of unemployment benefit payments varies according to the length of time social insurance premiums were paid. Workers who have paid unemployment insurance premiums for 600 days over their insured employment are entitled to 180 days of unemployment benefit. Those who have paid premiums for 900 days are eligible for 240 days of benefit; those who have paid for 1,080 days are eligible for 300 days of benefits.
Where Unemployment Benefits Are Collected
Unemployment benefits are paid out at local PTT branches in the beneficiary’s place of residence.
Circumstances That Lead to Termination of Unemployment Benefits
There are several situations in which unemployment benefits may be terminated. If a beneficiary accepts a job offered by İŞKUR that closely matches the duties of their most recent employment, their unemployment benefits will be stopped and will not be restarted. If, during inspections by authorized personnel, it is discovered that a person receiving benefits is working in an unregistered job, their payments will be terminated and not reinstated. If a beneficiary begins to receive an old-age pension or similar payment from any social security institution while receiving unemployment benefits, those benefits will be stopped. Another reason for termination is failure to participate in vocational development or training programs offered by İŞKUR, or failure to respond to calls for participation; in such cases unemployment benefits are discontinued.