Unemployment Fund assets applied for incentive payments during the pandemic period also melted.
The government, on the other hand, is looking for ways to strengthen the fund, where expenses doubles the income due to payments made to workers and incentives given to employers due to the pandemic.
Accordingly, the government is expected to double the premium deduction from both the worker and the employer over the gross figure of the minimum wage.
Established for the employee… Employer incentives were also met from the fund
One of the most important expenditures in the fund created for workers to become unemployed or to help them in extraordinary conditions was also the incentives given to employers. Although billions of TL incentives are given to employers from the fund every year by the workers' front, the practice continued this year as well. According to the Turkey's Employment Agency (ISKUR) bulletin, 18.3 billion TL was paid to employers during January-November 2020.
On the one hand, pandemic support, on the other hand, incentives given to employers increased expenses and decreased incomes in the Unemployment Fund. The fund, which was created to help employees come to their rescue when they were unemployed, began to be alarmed by melting in 2020.
EXPENSE IS TWICE OF INCOME
According to the November 2020 bulletin of İşkur, the asset of the fund was recorded as 102 billion 373 million 116 thousand TL as of December. However, during the pandemic period, the expense of the fund, which was opened to short-time work allowance and unpaid leave payments, doubled its income. Between January and November 2020, 34.5 billion TL was transferred to the fund, while the amount released from the fund was 60.9 billion TL.
25 BILLION TL EXPENDED FOR SHORT WORKING PAYMENT
The biggest item of the expenditure was Short Work Allowance (KÇÖ). The taps of the fund were opened when the wage required to meet the needs of the worker in the days he was not working could not be provided by the employer. KÇÖpayments, which were millions of last year, were 25.6 billion TL in 2020. However, despite all these payments, a significant portion of the workers could not benefit from this. Workers who received KÇÖ payments had to earn a living with wages well below the minimum wage.
5 BILLION TL EXPENDED FOR UNPAID LEAVE
While some of the workers were included in the scope of the KÇÖ during the pandemic, some were taken on unpaid leave due to the prohibition of dismissals. These workers were paid 39 per day and so one thousand 177 lira per month. 5 billion 802 million TL was spent from the coffers of the Unemployment Insurance Fund for these payments.
AN IMPORTANT PART OF EXPENDITURES HAS BEEN RETURNED TO THE EMPLOYER
One of the most important expenditures in the fund created for workers to become unemployed or to help them in extraordinary conditions was also the incentives given to employers. Although billions of TL incentives are given to employers from the fund every year by the workers' front, the practice continued this year as well. According to the İşkur bulletin, 18.3 billion TL was paid to employers during January-November 2020.
BONUSES ARE EXPECTED TO DOUBLE TO STRENGTHEN THE FUND
As a result of the increase in expenditures and the decrease in revenues, the cash assets in the fund are gradually decreasing, while the government is expected to increase the premiums in order to strengthen the fund again. In the current system, 1 percent of the employee's gross wage is paid to the Unemployment Insurance Fund, and 2 percent of the employer's premium is paid. The government is expected to temporarily double these premium rates in 2021.
According to the November 2020 bulletin of Turkey's Employment Agency (İŞKUR), the asset of the fund was recorded as 102 billion 373 million 116 thousand TL as of December. However, during the pandemic period, the expense of the fund, which was opened to short-time work allowance and unpaid leave payments, doubled its income. Between January and November 2020, 34.5 billion TL was transferred to the fund, while the amount released from the fund was 60.9 billion TL.
Going back to the beginning… Applying to the employee and employer again… The premiums will be doubled
As a result of the increase in expenditures and the decrease in revenues, the cash assets in the fund are gradually decreasing, while the government is expected to increase the premiums in order to strengthen the fund again.
* In the current system, 1 percent of the employee's gross wage is paid to the Unemployment Insurance Fund, and 2 percent of the employer's premium is paid. The government is expected to temporarily double these premium rates in 2021.