Government to grant loans to firms expanding workforce

Government to grant loans to firms expanding workforce

Hacer Boyacıoğlu - ANKARA
Government to grant loans to firms expanding workforce

Within the scope of a new economic reform package, micro and small-sized businesses that increase the number of employees on their payrolls will be granted loans between 100,000 and 500,000 Turkish Liras ($13,200 and $66,100).

State-backed loans with a two-year term and a grace period of six months will be offered to small businesses that will hire additional employees, according to the 89-page text revealed by Turkish President Recep Tayyip Erdoğan on March 12.

Employers will also be able to apply for the Credit Guarantee Fund loans if they take back employees who were on compulsory leave.

The Unemployment Insurance Fund is paying a daily allowance of 47.70 liras ($6.26) to workers forced to take unpaid leave since a layoff ban was introduced on April 17, 2020. Nearly 1.4 million workers were paid compulsory leave allowances last month.

The economic reform package includes regulations about working on part-time jobs as well. Labor laws will be adjusted to specify paid leave days, weekly working hours and severance allowance rights of part-time workers.

Meanwhile, employment incentive schemes will be simplified as part of a Youth Employment National Strategy Document, which will include pay raises for vocational trainees.

The package also announced the formation of a bond guarantee fund to support company bond auctions.

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