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The Regulation Regarding the Benefit for Temporary Incapacity to Be Settled From the Employer’s Premium Debts

According to the Art. 18 of the Social Security and General Health Insurance Law, benefit for temporary incapacity is given by the Social Security Institution (“SSI”) to the 4/a or 4/b insured employees with the provision of receiving sick leave report from doctors or health committees authorized by the SSI. Also in the 6th clause of the same article states that: “Benefits for temporary incapacity is paid in the name of the Institution, by the workplaces concluded collective labor agreement and employers of public administrations, to the insurant in accordance with the procedure and principles determined by the Institution, and afterwards shall be collected via net off with the Institution”. It is provided with the 2016/21 numbered Circular that not only the workplaces that conclude collective labor agreements and public administrations but also all workplaces that demand, shall benefit from this practice.

As it is known, it is not obligatory for the employer to pay insurance premiums and salaries during the time that the employee is on sick leave. However, in practice, in order not to create a situation that the employee becomes aggrieved, the employers continue to make full payment or demand for the refund of the benefits for temporary incapacity that are provided to the employee by the SSI. With the amendment (10/7/2018 dated and 2018/26 numbered Circular) mentioned in the clause 6.2. of 2016/21 numbered Circular, the opportunity to settle benefits of temporary incapacity with employer’s premium debts is provided instead of putting the benefits to employee’s account by the SSI. Thus, the benefits that the employees will receive, shall be kept in employer’s fiduciary accounts and shall be settled to the employer’s premium debts automatically.

In order to benefit from this practice, the employers that demand settlement shall sign the “Settlement Protocol” with the SSI; and afterwards, the protocol and the workplace information shall be sent to Short-Term Insurances Head of Department by the SSI. It is not needed to sign more than one protocol for the employers who have more than one workplace, one protocol that mentions workplaces desired to be in this scope, shall be enough.

It is mentioned in the protocol that is attached to the 2016/21 numbered Circular and will be signed between the employer and SSI that the employer may monitor the information and benefit payment amounts via “Notification Entry Regarding Nonemployment” at “Other Applications” menu placed at “E-SGK” link via and also through this display the employer may be obliged to make necessary approval transaction related with the employee after the SSI payment.


Written by Seda Arıcı, Posted in Social Security Law and Legislation

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About The Author

Seda Arıcı

Legal Consultant | Attorney
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