Unemployment fund turned into employer fund


The Unemployment Fund, which was established to enable the unemployed to make ends meet until they find a job, turned into an incentive fund for employers. The payment made to the employer in 5 years has reached twice the payment made to the unemployed in 21 years.

Deniz Bilici IMMIGRANT

Release: 05:30 – 13 November 2023 Updated:

Unemployment fund turned into employer fund

Paid Unemployment Insurance Fund, which employees see as security in case they become unemployed, continues to flow to employers. In the first 10 months of the year, approximately twice the amount paid to the unemployed was paid to employers. According to the October 2023 Unemployment Insurance Fund Bulletin of the Turkish Employment Agency (İŞKUR), a total of 17 billion 723 million TL was paid to the unemployed in the first 10 months of the year, while incentive and support payments to employers reached 31 billion 949 million TL in the same period. According to the data for the January-September 2023 period included in İŞKUR’s monthly bulletin, even half of those who applied for unemployment benefit could not access the benefit. While 1 million 226 thousand 253 people applied for unemployment benefits, only 551 thousand 116 were eligible to receive the benefit. In the 21 years that the fund has been in effect, the amount paid to those who became unemployed fell approximately 61.4 billion lira behind the payments made to employers in the last 5 years. While 10.3 million of the 18.8 million unemployed people who applied since March 2002 were able to receive the benefit, the total payment made was 65.7 billion lira. Incentive payments made to employers in the last 5 years reached 127 billion liras.

INCENTIVES FOR EMPLOYERS ARE INCREASING

Working life experts point out the difficulty of the conditions for receiving unemployment benefits and demand that regulations be made. Incentive payments made to employers are constantly increasing. While the minimum wage support provided to employers in 2022 was 100 lira, it was increased to 400 lira for the first 6 months of this year and to 500 lira for the July-December period. This shows that the incentive payments to be made to employers at the end of the year will double.

The total ets of the fund exceeded 148 billion lira

According to the Unemployment Insurance Fund Bulletin of the Turkish Employment Agency (İşkur), the total et of the fund was 148.4 billion lira as of October 2023. In the 10-month period covering the January-October period, 63.9 billion lira of the income consisted of employee and employer premiums, 21.3 billion lira of state contribution, 34.4 billion lira of interest income, and 28.8 billion lira of other items. While total income was 24.2 billion lira in October, total expenses were 10.9 billion lira.

‘Wages are the first priority when changing jobs’

Making evaluations regarding employment, Michael Page Turkey General Manager Fatih Cömert stated that the economic situation affects employment greatly. In his statement to Bloomberg HT, Cömert said, “There is the Netherlands and Germany, which are technically in recession. They have been in recession for two quarters and Turkey has also been affected by this.” Stating that work-life balance is gaining importance, Cömert said, “In Europe, work-life balance is now above salary, and the number 1 factor is now changing jobs. In other words, workplaces that provide work-life balance and are more flexible are preferred. In Turkey, wages are still the first priority with 52 percent, but this is normal, we are in an inflationary environment. But in Europe, wages have now become secondary. “It is now very difficult to retain talent, it is already difficult to find it and it is also difficult to keep it,” he said.



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