Ankara moves to subsidize youth hiring with wage, premium support

Ankara moves to subsidize youth hiring with wage, premium support

ANKARA
Ankara moves to subsidize youth hiring with wage, premium support

A draft bill introducing a targeted wage and social security premium support scheme aimed at boosting youth employment is set to be submitted to the parliament.

 

Prepared by lawmakers from the ruling Justice and Development Party, under the proposed legislation, financial incentives will be provided to private sector employers who hire young people aged 18 to 25 registered as unemployed with the Turkish Employment Agency (İŞKUR).

 

The support will be financed through Türkiye’s Unemployment Insurance Fund, a state-backed mechanism designed to mitigate labor market risks.

 

Eligibility criteria stipulate that beneficiaries must be between 18 and 25 years old, formally registered with İŞKUR, and not currently enrolled in higher education.

 

Additionally, candidates must not have more than 90 days of prior long-term social security coverage. Foreign nationals and individuals employed abroad are excluded from the scheme.

 

The program will apply specifically to private enterprises operating in the manufacturing sector, reflecting a policy focus on strengthening industrial employment capacity.

 

The draft outlines two alternative support models. In the first, employers will receive full wage and premium coverage — up to the net minimum wage — for a period of up to six months.

 

During this period, both the employee’s wages (capped at the minimum wage) and the entirety of employer-paid social security premiums, calculated on the minimum wage, will be covered by the Unemployment Insurance Fund and transferred to the Social Security Institution.

 

In the second model, support is extended over a longer duration of up to 18 months, albeit at a reduced rate. Employers will receive subsidies covering up to half of the net minimum wage, while 50 percent of the corresponding social security premium costs will likewise be financed by the fund.