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Government to cover social security premiums for Turkish youth and women

by Anadolu Agency

BOLU, Turkey Apr 15, 2015 - 12:00 am GMT+3
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by Anadolu Agency Apr 15, 2015 12:00 am
The government will be assuming the social security premiums of any female employers or employees between the ages of 18 to 29 to increase declared employment. With new state incentives, it will become easier for companies to hire the labor they require. A series of incentives to increase employment and decrease undeclared labor have been announced. The general manager of the Insurance Premiums of the Social Security Institution (SGK), Ahmet Açıkgöz, highlighted the incentive for the employment of females and young workers. Speaking at the introductory meeting of the "Support Project for Declared Employment through Effective Guidance and Inspection," initiated by the SGK to increase declared labor, Açıkgöz said that incentives would be provided in 10 different areas. "When employers declare the labor they hire, then a certain portion of the social security premiums that are to be covered by employers will instead be paid by the government," said Açıkgöz. With this new incentive, the total share of employers for social security premiums of female workers and workers between the ages of 18 and 29 will be covered from the unemployment fund. This would mean the premium amount, which is TL 450 ($160) for minimum-wage workers, would drop to TL 204.

Açıkgöz said that undeclared labor is both a burden on society and the SGK, and in Turkey, one out of every three workers is undeclared. While undeclared labor was around 52 percent in 2002, it declined to 43-44 percent in 2008, and today, undeclared labor accounts for approximately 33 to 34 percent of total employment. He also noted that the undeclared labor rate is much higher for female workers than males. "According to the averages in 2014, women account for 48.44 percent of undeclared labor, while men account for 29.29 percent," added Açıkgöz. He also said that 81 percent of undeclared labor was in agriculture, 21 percent in the service sector and 20 percent in the industrial sector. Region wise, the eastern parts of Turkey have the highest undeclared labor rates, and the rate declines, as it gets further westward. In addition, the undeclared labor rate decreases as the size of companies increases.
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