NEWSROOM

The incentive period, which entered into force with the Law No. 7103 on insurance premium incentives given to employers to increase the number of employees and to strengthen employment, ended as of 31.12.2022. A survey was conducted with the companies affected by the expiration of the incentives. Accordingly, the termination of incentives will negatively affect the budgets of 83% of companies.

Employers benefited from a total of 30 billion Lira support in 2022 within the scope of additional employment incentives. This figure was expected to reach 40 billion Liras in 2023. Providing consultancy services to employers on incentives, Rasyotek conducted a survey on the impact of the additional employment incentives bag law numbered 7103, which expired in December last year, on companies. In the survey participated by companies from 81 provinces of Turkey, 84 percent of employers stated that incentives contributed to the recruitment of new personnel.

“The end of incentives will negatively affect employers' budgets”

Rasyotek Chairman of the Board of Directors Haldun Pak stated that they conducted a survey on the incentive numbered 7103, which came into effect in January 2018, in order to prevent unregistered workers and to increase the employment of women, youth and disabled people, and said, “97% of the 200 companies that participated in our survey in our 81 provinces are from employment incentives. The companies that answered our questions about employment incentives and gave their opinions generally met at the same point. Our employers expect the insurance premium support of up to 10 thousand Lira per month to be extended until the end of 2023, given to workplaces that employ additional employment in the manufacturing and IT sectors. While 79 percent of the companies said that they considered the contribution of employment incentives while making the 2023 budget, the rate of those who stated that their budget would be affected as a result of the end of the incentives resulted as 83 percent.

The termination of incentives may cause a decrease in employment.

Employers who stated during the survey conducted by Rasyotek, a consultancy firm specialized in incentives, that the termination of incentives caused a great increase in their costs underlined that the cost increases in many sectors could not be reflected in the prices, and therefore the employment incentives provided helped to create additional employment and alleviate the burden on the employer. Stating that companies that make full notifications, make their payments on time, increase employment with personnel recruitment, and progress towards growth should be supported with incentives, 64 percent of the employers stated that if employment incentives are terminated, their 2023 recruitment will be adversely affected. In addition, 58 percent of the respondents said that the end of the incentives would cause a decrease in their employment in 2023.