Turkey has introduced important changes to its Employment Protection Support Program (İstihdamı Koruma Destek Programı), expanding and restructuring the support available to businesses that maintain employment levels.
The amendments were published in the Official Gazette (Resmî Gazete) No. 33354 dated 28 August 2026 and entered into force on the date of publication.
The changes are particularly relevant for companies operating in Turkey’s manufacturing sector, as they introduce updated employment retention criteria, financial support mechanisms and new rules concerning applications and payments.
What is the Employment Protection Support Program?
The Employment Protection Support Program is designed to encourage companies operating in Turkey to maintain their workforce.
Under the revised rules, eligibility for support is primarily determined by whether a company maintains its employment level during a designated employment protection period.
The reference period and employment protection period will be determined by the relevant authorities. The employment protection period cannot be shorter than six months.
Employment levels are assessed primarily through the average number of social security premium days declared for employees.
For a given month, employment is considered maintained when the total number of premium days declared by the company is equal to or higher than the average monthly number of premium days during the reference period.
A cumulative calculation may also be used when determining whether the employment requirement has been satisfied throughout the protection period.
Businesses that did not employ insured workers or submit the relevant social security declarations during the reference period are not eligible for the program.
TRY 3,500 Support for Certain Manufacturing Sectors
One of the main measures concerns companies operating in selected manufacturing industries.
Eligible businesses operating under the relevant NACE codes in the following sectors may receive financial support:
- Textile manufacturing
- Clothing manufacturing
- Leather manufacturing
- Furniture manufacturing
- Certain manufacturing activities related to fasteners, buttons and zippers
For eligible companies maintaining employment, the support amounts to TRY 3,500 for every 30 social security premium days, calculated proportionally where applicable.
This mechanism is therefore directly linked to the level of employment maintained by the company.
New Credit Support for Manufacturing Companies
The revised program also provides a credit support mechanism for eligible manufacturing companies maintaining employment.
The maximum credit amount is calculated by reference to the company’s average earnings subject to social security contributions during the reference period and the duration of the employment protection period.
Companies meeting additional technical criteria determined by the authorities may benefit from an increased credit limit.
The amended rules also increase the maximum support rate applicable to eligible financing from 10 support points to 15 support points.
Eligible loans may benefit from a principal repayment-free period of up to six months and a maturity of up to 36 months.
Specific Rules for Companies with Investment Incentive Certificates
The revised framework also introduces a specific mechanism for businesses holding an Investment Incentive Certificate (Yatırım Teşvik Belgesi) under the relevant Turkish investment incentive regime.
For these companies, the amount of financing available may be determined according to the additional employment commitment included in the investment incentive certificate.
Companies must comply with the applicable employment requirements and other conditions attached to the investment incentive scheme in order to benefit from the support.
This development may be particularly relevant for international companies planning manufacturing investments or expanding existing operations in Turkey.
Application and Payment Process
Applications under the Employment Protection Support Program will be handled through the designated electronic application system.
The relevant authorities will separately announce the application calendar and detailed implementation procedures.
Depending on the type of support, payments may also be offset against outstanding tax and Turkish Social Security Institution (SGK) liabilities.
The revised rules therefore create a closer connection between employment support, payroll reporting and companies’ social security compliance.
What Does This Mean for Employers in Turkey?
The amendments reinforce the Turkish government’s policy of linking financial incentives to the preservation of registered employment.
For employers, maintaining accurate payroll and SGK records becomes particularly important because eligibility can depend directly on the number of social security premium days reported during the relevant reference and protection periods.
Companies considering the program should therefore review:
- Their applicable NACE activity code
- Their historical employment and SGK declarations
- Average monthly social security premium days
- Earnings subject to social security contributions
- Existing tax and SGK liabilities
- Eligibility for investment incentives
- Employment levels throughout the applicable protection period
International companies operating manufacturing facilities in Turkey should also assess whether the revised program can reduce part of their employment or financing costs.
Employment and Payroll Compliance in Turkey
Employment incentives in Turkey are closely connected with payroll administration, social security declarations and employment compliance.
Companies employing personnel in Turkey must ensure that salaries, social security contributions, employment registrations and statutory declarations are correctly managed in accordance with Turkish legislation.
Azkan Group supports international companies with payroll, employment administration, Employer of Record (EOR) and HR services in Turkey.
For companies without a local entity, an Employer of Record solution can also provide a compliant way to employ personnel in Turkey while managing payroll, social security and local employment obligations.
