In terms of severance pay, which is one of the most important rights of workers within the working relationship; as a result of the meetings, new regulation proposals have been brought to the agenda. The establishment of a fund for severance pay is one of these regulations planned. So, what about the details and effects of this fund? It should be noted that; regarding severance pay, two separate models are planned as compulsory savings model or supplementary insurance. The mixed model to be established is aimed to become valid in 2022. There is no legislation regarding these proposals yet. The details of the new system planned in terms of severance pay are as follows:
– Compulsory Saving System: While it is possible to earn a month’s seniority in return for one year of work in the current system; a shared model has been developed in the proposed compulsory savings system. In this context; required amount to earn a month’s seniority for one year of working is 8.33%.
In this direction; 3% of the wages of each employee will be deposited by the employer into the fund system account to be established, in return, the obligatory amount to be covered by the employer will be decreased to 5.33%.
In other words; 11 days of every 30-day work or approximately 35% of severance pay will be passed to the public. In terms of the remaining 19 days; regarding the amount up to 5.33% of the gross wage corresponding to this period, the current system will continue and if the employment contract terminates, the employer will be liable to pay within the conditions.
Within the scope of this model; the amount accumulated at the end of the period to be determined together with the advantages of the public accumulation can be received collectively or demanded to be paid as wage.
– Supplementary Insurance System:
– Supplementary insurance system is a system with professional insurance status. In this system, it is planned that the employer and employee pay different rates regarding the severance pay.
– In the planned system; premium rate will be 6%. 1 point will be the state contribution.
– In connection with the wage of the employee; there will be gradual percentage increase.
– The employer will pay 4.5% of the premium for the employee who works in minimum wage and employee will pay 0.5%.
-Employee premium rate will increase by 0.5%, for overcharges of each multiple of the minimum wage.
– For an employee who gets twice the minimum wage, the contribution rates will be 1% for the employee and 4% for the employer, and for an employee who gets four times the minimum wage, the contribution rates will be 2.5% for the employee, and 2.5% for the employer. After this point, even if the wage is higher, the premium rate will remain the same.
Again, according to this system; for severance pay, it is planned that the employer will deduct premium every month and the government will contribute a certain amount to the collected premiums.
In terms of the fund system, it is planned that the retirement age to be 60, and in cases such as marriage, purchase house, illness, death etc. the employee will be entitled to partial drawing cash regarding the money accumulated in the fund.
– How will the existing employees transition to the system?
Detailed information on how the transition process of the existing employees will be in the planned system has not been shared yet. Only; in the supplementary retirement insurance system; it is stated that those who still demand among the employees will be given the right to transition to the fund. Details about whether it can be included in the system for those who are close to the retirement age or whether there will be a limitation on this or whether the previous works of those who want to transit the system can be transferred to the fund with a support model are not shared.
– Advantages and Disadvantages:
– Making certain amounts of payments to the fund by the employer is seen as an advantage in terms of obtaining severance pay.
– It is uncertain what the outcome will be if the necessary premiums are not paid to the fund by the employer; one of the disadvantages of the system is that the employee experiences a possible deprivation in terms of obtaining severance pay.
– There is no clarity regarding the rates and details of the system, yet, it is clear that planned and comprehensive steps should be taken to ensure the balance between the employee and the employer in terms of working order.