The Minister of Labor and Social Security, Bilgin, announced in his statement last week that the EYT study is about to be completed and will be brought to the Parliament. After Bilgin’s statement, a remarkable move came from TOBB. Writing a letter to the Ministry of Labor and Social Security, TOBB stated that the business world is uncomfortable with EYT.
After the Minister of Labor and Social Security Vedat Bilgin announced that the work on the EYT was about to be completed, Habertürk columnist Sevilay Yılman wrote an article stating that the regulation on EYT disturbed the business world.
Stating that TOBB wrote a letter to the Ministry of Labor and Social Security, Yılman expressed that the business world is uncomfortable with the regulation. In the letter sent by TOBB; It was stated that when EYT becomes law, heavy severance pay to retirees will increase the financial support of enterprises, the loss of labor in companies will be 20 percent, and there will be a loss of senior and qualified workforce in the 45-55 age group in enterprises. TOBB officials, who also wrote the methods to alleviate the concerns, stated that the EYT retirement dates should be spread over the years, and credit support should be provided to the enterprises for the severance pay to be paid to those who will retire due to EYT.
Yılman wrote:
“Last week, when Minister Vedat Bilgin stated with certainty that the work was almost completed and that he would be brought to the parliament in the coming days, TOBB (Association of Chambers and Commodity Exchanges of Turkey), one of the largest and most influential organizations in the business world, stepped in and sent a letter to the ministry explaining the reasons for his concerns and the methods to address these concerns. forwarded.
I do not know whether Minister Bilgin will step back from this point and take these suggestions of the business world into consideration. I hope he doesn’t because, as they also explained, a total of 1.5 million people have high hopes that the regulation will definitely be implemented.” he wrote.
Publishing the letter in which TOBB conveyed his concerns about the EYT members to the ministry, Yılman stated that the Istanbul Chamber of Commerce also shared its concerns due to a serious severance pay liability due to the regulation.
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The letter sent by TOBB to the Ministry of Labor and Social Security is as follows:
– Depending on the minimum wage increase in 2023, the heavy severance payments to be made to those who will retire will increase the financial needs of the enterprises.
– When EYT becomes law, the workforce loss will be 20% on average, depending on the companies.
In order to reduce the deficit of the Social Security System, it may be on the agenda to increase the insurance premium rates in the coming periods.
– If the employment of the retired continues, the premium burden of the enterprises will increase since the social security support premium rate is high.
– When retired people start working again, unregistered employment will increase due to unregistered work demands.
– Losses in employment incentives may occur due to the resignation of those who will retire due to EYT.
RECOMMENDATIONS FOR REMOVING ADVERSE EFFECTS
The application should start from those who have been unemployed for at least 1 year.
With gradual age reduction and similar models, EYT retirement dates should be spread over years, taking into account the insurance period.
For the severance pay to be paid to those who will retire due to EYT, low-interest and long-term financing should be provided to businesses.
If existing employees will be entitled to retirement, at least 8 weeks notice period must be brought.
Arrangements should be made for those who have completed the number of insurance and premium days and are waiting for their age to receive severance pay once. (15 years – 3600 days)
Arrangements should be made to prevent the losses that may occur in employment incentives due to the retirement of those who will retire due to EYT.
If the employee who is entitled to retirement wishes to continue working, the obligation to leave the workplace should be removed in order to receive a pension.
Social security support premium rates should be lowered so that those who retire can be employed for their business needs.
Depending on the number of premium payment days of retired employees, their pensions should be increased and unregistered work should be prevented.”
