Business world is uncomfortable with EYT: ‘Similar practices should be stopped’

Vedat Işıkhan, Minister of Labor and Social Security, attended the August parliamentary meeting at the Ankara Chamber of Industry (ASO). Minister Işıkhan said that they aim to close the second quarter of 2023 with growth.

ASO Chairman Seyit Ardıç, who spoke about the regulation of Aged Pensioners (EYT), which benefits about two million beneficiaries, expressed his discomfort.

“APPLICATIONS LIKE EYT SHOULD BE ENDED”

Stating that the EYT-like practices should be ended, Ardıç said:

“Our request to provide a loan guarantee fund loan on favorable terms in order not to disrupt the financing structure of our enterprises for the severance pay amount of approximately 300 billion TL paid and to be paid to our approximately 1 million 750 thousand employees who will retire due to the EYT regulation, has not been met by the banks. “The compensation must be paid immediately. Considering this legal obligation, credit should be provided to our businesses under appropriate conditions. Practices like EYT that will disrupt the actuarial balance of the social security system and the workforce structure of our businesses should be stopped.”

“INCREASE MINIMUM WAGES FORCES BUSINESSES”

Seyit Ardıç stated that they found the minimum wage increases valuable in terms of the inclusiveness of growth and demanded that the minimum wage support given to the employer should be made permanent.

Ardıç said that the minimum wage that has been increased recently has put pressure on businesses. “We support the increase in the welfare of our employees. On the other hand, it is an important issue that our state will bear some of the burden on the employer. Because the minimum wage, which has been increased above the inflation rate in the last period, is pushing our businesses. Wage support should be made permanent by taking this rate into account.At the beginning of the problems mentioned by our industrialists regarding employment at every opportunity is the reduction of non-wage items such as taxes, SSI and unemployment insurance to lower levels. In particular, the Income Tax levels applied to wage earners have been significantly increased. The first step of Income Tax has decreased from 22 times the gross minimum wage in the past to 6 times in the current situation. The applied Income Tax rates increase labor costs, but significantly reduce the net wages received by our employees. Income Tax steps are re-evaluated every year. should be increased by said.