15.11.2017 Ankara
Employers who provide sustainable growth and increased employment with government support following a 48% increase in minimum wage over the last two years are demanding that employment incentives continue. The Union of Chambers and Commodity Exchanges of Turkey and the Turkish Confederation of Employers' Associations, giving a joint statement, pointed out that in addition to the minimum wage increase of 2018, the cessation of state support would negatively affect the competitive power of the enterprises.
The minimum wage, which concerns more than
five million workers, will be re-determined with the new year. The Union of
Chambers and Commodity Exchanges of Turkey (TOBB) and the Turkish Confederation
of Employers' Associations (TİSK) emphasized that the continuation of the
government support for minimizing the employment costs of the increase in
employment rates after the 30% increase in the minimum wage of 2016 is
important for sustainable employment. A monthly subsidy of 100 TL is being paid
to employees to ensure that part of the employment costs incurred as a result
of the minimum wage increase in 2016 is covered by the government. This support
gave positive results in terms of increasing the competitive power of
enterprises and encouraging registered employment in small and medium sized
enterprises, in particular those employing heavily on minimum wage.
TOBB President Rifat Hisarcıklıoğlu stated
that employers mobilized, employing 1.5 million people in the last year with
the employment mobilization initiated under the leadership of President Recep Tayyip
Erdoğan and stated that, “Despite the uncertainties in the world and especially
in our region, 1.5 million new job opportunities is an important success story.
The support we have described as the most comprehensive employment incentives
given to employers in Turkey has contributed positively to the indicators of
unemployment. In this context, it is very important that the support of 100
liras given in the minimum wage is continued so that the employment increases
can be continued.”
Commenting on the issue, TİSK Chairman
Kudret Önen emphasized the importance of continuing the incentive program for
enterprises by the state, which offset part of the employment costs of
approximately 48% increase of the minimum wage of the last two years.
Emphasizing that the lack of continuing government support can negatively
affect businesses' competitiveness, Önen said, “In 2017, companies funded by
the state with premiums to be paid by employers for newly hired employees have
been able to recover on a path to sustainable growth. The long-term benefit of
the largest employment support of our history, which contributed positively to
the unemployment indicators, will be provided by sustaining the incentive. As
Turkish employers, we believe and support every step taken to improve the
competitive environment, employment and the country’s prosperity, the
investment climate and ensure sustainable growth.”