03 October 2023
Unemployment Benefit Calculation and Amount for 2023
What Is Unemployment Benefit (Unemployment Allowance)?
Unemployment benefit," or as specified in the law, "unemployment allowance," is a payment provided to individuals who have previously worked as insured and meet all the conditions specified in Law No. 4447 (In Turkish) to financially support them to prevent income loss when they become unemployed. Unemployment benefit is provided to insured individuals for a specific duration and amount during the period of their unemployment, based on certain conditions as specified in the law. The purpose of providing unemployment benefits is to ensure that the individual who becomes unemployed can sustain their own and their family's livelihood during the period of unemployment.
What are the Conditions to Benefit from Unemployment Allowance?
To be eligible for unemployment benefit (unemployment allowance), certain conditions outlined in the Unemployment Insurance Law must be met:
- Being unemployed involuntarily and not at fault,
- Having been employed for at least 120 days prior to the termination of the employment contract,
- Having paid unemployment insurance premiums for at least 600 days within the last three years before the termination of the employment contract,
- Applying to the nearest İŞKUR (Turkish Employment Agency) office in person or electronically within 30 days after the termination of the employment contract.
How to Apply for Unemployment Benefit (Unemployment Allowance)?
To be eligible for unemployment benefits, a person must submit their application within 30 days of their employment contract ending. Applications can be submitted either in person at the closest Turkish Employment Agency (İŞKUR) location or online at www.iskur.gov.tr. If the application is not submitted within 30 days, the amount of time that passes before submission will be deducted from the total period in which the person is eligible for benefits, unless there are extenuating circumstances.
How Long is Unemployment Benefit (Unemployment Allowance) Paid?
If the conditions specified in the Law are met, unemployment benefits are paid for the following periods within the last three years prior to the termination of the employment contract:
- 180 days for the insured unemployed who have worked for 600 days and paid unemployment insurance premiums,
- 240 days for the insured unemployed who have worked for 900 days and paid unemployment insurance premiums,
- 300 days for the insured unemployed who have worked for 1080 days and paid unemployment insurance premiums.
What Services Are Offered to Those Eligible for Unemployment Benefit?
The services offered to insured employees who are eligible for unemployment benefit are as follows:
- Unemployment benefit ( unemployment allowance)
- Payment of Health Insurance Premiums
- Job search support based on qualifications
- Opportunities for vocational development and skill enhancement training
How Much is the Amount of Unemployment Benefit for 2023?
Unemployment benefit (unemployment allowance) is calculated as 40% of the daily average gross earnings, taking into account the monthly prime earnings of the insured individual in the last four months of work. The amount of unemployment benefit (unemployment allowance) cannot exceed 80% of the gross amount of the monthly minimum wage. Unemployment benefit (unemployment allowance) is not subject to any tax or deduction other than stamp tax.
Calculation of the Monthly Unemployment Benefit (Unemployment Allowance) for 2023:
How much is the unemployment benefit as of July 2023?
|Monthly Average of Prime Earnings for the Last 4 Months||Amount of Unemployment Allowance Calculated||Stamp Tax Rate||Amount of Unemployment Allowance|
|Minimum Wage Employee for the last 4 months of 2023||13,414.50 TRY||5,365.80 TRY||0,00759||5,325.07 TRY|
|Employee with 15,000.00 TRY for the Last 4 Months||15,000.00 TRY||6,000.00 TRY||0,00759||5,954.46 TRY|
|Employee with 30,000.00 TRY for the Last 4 Months||30,000.00 TRY||10,731.60 (*)||0,00759||10,650.15 TRY|
(*) This is how the amount of monthly unemployment benefit to be paid to the insured unemployed was calculated because the unemployment benefit amount cannot exceed 80% of the gross amount of the monthly minimum wage.
When Is Unemployment Benefit Paid?
Individuals who apply for unemployment benefits (unemployment allowance) can expect their applications to be processed by the end of the month following their application month. Payments for unemployment benefits are made to the individual on the 5th day of each month. It is important to note that receiving benefits earlier than the scheduled date is subject to the discretion of the Minister of Labor and Social Security.
Insured unemployed individuals receive their payments through bank accounts provided to the Turkish Employment Agency (İŞKUR) using the International Bank Account Number (IBAN). However, if the provided account numbers are incomplete or incorrect, payments will be made through the nearest PTTBank (In Turkish) branch.
Under What Circumstances is Unemployment Benefit Suspended?
The circumstances under which unemployment benefits are suspended are governed by Article 52 of the Unemployment Insurance Law No. 4447. As per the law, when insured individuals receive unemployment benefits:
- The individual who refuses a job offered by İŞKUR that matches their occupation and is closely aligned with the wages and working conditions of their previous job and is located within the boundaries of their municipality of residence without any justifiable reason,
- The individual who is found to be employed in a wage-earning employment or receiving an old-age pension from the Social Security Institution (pensioner) while receiving unemployment benefit,
- The individual who declines vocational development, acquisition, and training offered by İŞKUR without a justifiable reason or does not continue after acceptance,
- The allowances of insured unemployed individuals who, without any justifiable reason, fail to respond to İŞKUR calls on time and do not provide the requested information and documents within the deadline are cut off.
However, the payments are resumed once these conditions expire. The payment duration cannot exceed the initial entitlement period.
What are the Points to Consider When Receiving Unemployment Benefit (Unemployment Allowance)?
Individuals who are entitled to unemployment benefit (unemployment allowance) should pay attention to the following situations during the period of receiving the allowance:
- Change of residence address,
- Receiving an old-age pension from any social security institution,
- Being granted sick leave or being drafted into military service by an authorized healthcare institution,
- Traveling abroad,
- Starting in a new job,
- Reinstatement to work by a court order.
In such cases, it must be reported to the nearest İŞKUR unit or Alo170 within 15 days.
Unemployed insured individuals who benefit from unemployment benefits must repay overpayments caused by their own fault or incomplete/incorrect information, along with legal interest.
Can Individuals Benefit From Healthcare Services While Receiving Unemployment Benefit?
An individual who receives unemployment benefit (unemployment allowance) can benefit from General Health Insurance for the duration of the unemployment benefit. Additionally, any dependents of this person who is entitled to receive unemployment benefit are also covered by the General Health Insurance.
What Documents are Required When Applying for Unemployment Benefit (Unemployment Allowance)?
The documents required when applying for unemployment benefit are as follows:
- Notification of Termination of Employment (eligible through e-Devlet)
- Unemployment benefit letter
- Unemployment benefit application form (eligible through e-Devlet)
- National ID card
Can Unemployment Benefit be Restarted?
Under Article 50 of Law No. 4447 on Unemployment Insurance:
"An insured individual who returns to work before completing their entitlement period for unemployment benefits and becomes unemployed again without meeting the conditions required by the law to receive benefits will still be entitled to their previous benefits. However, if they become unemployed again while meeting the conditions specified by the law, they will only receive benefits for the duration of the new entitlement."
Should you have any queries or need further details, please contact us.