SGK incentives underwent changes for 2021 with Law No. 7256 on the Restructuring of Certain Receivables and Amendments to Some Laws, and provisions of the Unemployment Insurance Law No. 4447. The new employment incentives began to be applied as of 17.11.2020.
SGK incentives are offered both to employees and employers. People receiving unemployment benefits and employers encouraged to create additional employment are the primary focus of the designated SGK incentives. Employers who hire people who lost their jobs between 1 January 2019 and 17 April 2020 receive premium support. Those who have been unemployed for longer than 12 months receive a support payment of 1,324 TL per month.
What SGK incentives are given if people receiving unemployment benefits are employed and work continuously for 12 months?
This incentive is explained under Article 5 of Law No. 7256. When a person receiving unemployment benefits is re-employed, the Unemployment Insurance Fund provides support for the employee. The duration of support corresponds to the remaining period of unemployment benefit the insured had prior to starting the new job.
The eligibility conditions for this incentive are as follows:
- The insured person must be receiving unemployment benefits.
- The person must start work within 90 days after leaving their previous job.
- The insured must work continuously for 12 months after starting the new job.
What are the conditions for SGK incentives for those who started work after 01.10.2020 or who were previously employed informally?
The duration of the incentive described in Article 12 of Law No. 7256 lasts until the ban related to the employer’s termination of the employment contract ends; that date is 30.06.2021. An insured who benefits from this incentive cannot simultaneously benefit from another support or discount for the same period.
Conditions to benefit from this incentive are:
- Applicants must not have been listed among insured persons reported to SGK as of October 2020.
- Those whose employment contract ended for reasons other than Article 25/II of Law No. 4857 between January 2019 and 17 April 2020, or those who were employed without social insurance, may qualify.
- The employee must apply to their employer within 30 days after the relevant provision of the law comes into force.
- Those receiving old-age or retirement pensions from SGK are not eligible for this incentive.
- This incentive is not available to foreign nationals.
What is the Additional Employment Incentive?
This incentive is provided under Article 13 of Law No. 7256. When the hired person is actively employed, the incentive is calculated by multiplying the number of premium payment days by 44.15 TL.
The monthly incentive amount is calculated based on a maximum of 30 days. If the employee is placed on unpaid leave after being hired, a daily support payment of 39.24 TL is provided for the unpaid leave period.
Conditions to benefit from this incentive are:
- The insured must not have been reported to SGK with their name after October 2020.
- The person must have been hired after this provision came into effect.
- Those receiving retirement or old-age pensions from SGK cannot benefit from this incentive.
- This incentive is not granted to foreign nationals.
Which incentive applies for hiring young people, women, or insured persons with vocational certificates?
Young men older than 18 and younger than 29, and women older than 18, can benefit from these SGK incentives. Those with a vocational qualification certificate can receive incentives for 48 months. Graduates of vocational and technical education institutions can benefit for 36 months, and those without vocational qualifications or prior training can benefit for 24 months.
Conditions set for the incentives available to young people and women are:
- The employment must have started between 03.2011 and 31.12.2020.
- Applicants must be older than 18.
- Applicants should not have records in monthly premium and service declarations submitted to the Social Security Institution for the six months preceding the hiring date.
- This incentive applies to young people and women who are actively working.