Cash and credit support provided to manufacturing enterprises protecting employment

The scope of the program to protect employment in the manufacturing industry, which was launched last year in labor-intensive sectors, has been expanded and its duration extended. With the new regulation, in addition to a monthly cash support of 3,500 TL per worker in the textile, apparel, leather, and furniture sectors, credit support has begun to be provided to manufacturing industry enterprises on the condition of protecting employment.

Duration of the Program Extended

The duration of the employment protection program in the manufacturing industry was amended in parallel with the periods specified in the provisional article 35 of the Unemployment Insurance Law No. 4447. The law envisions support payments to enterprises protecting employment between January 1, 2026, and December 31, 2028.

Sectors Supported and Conditions

Monthly cash support of 3,500 TL per worker continues to be provided in the textile, apparel, leather, and furniture sectors. The support payment will be based on the number of premium days in the reference periods to be determined by the Ministry of Industry and Technology.

Cost Advantage Provided to the Employer

The support is given for the days workers actually work. While the daily support amount is 116.67 TL, providing 3,500 TL per month to the employer for a worker working 30 days reduces the cost of a minimum-wage worker to the employer to 35,723 TL.

Increase in Employment and New Credit Opportunity

The number of workers in the four sectors reached 1 million 209 thousand in June, up from 1 million 196 thousand in December. Credit opportunities have started to be provided to enterprises in all manufacturing industry sectors on the condition of protecting employment.

Credit Conditions and Applications

The credit support can have a principal grace period of up to six months and a maturity of up to 36 months. The portion of the loan interest up to 15 points will be covered by the ministry, and applications have started online as of September 1.

Offsetting for Indebted Enterprises

While credit support is not normally provided to enterprises with debts to tax offices and the Social Security Institution, these support payments can be executed through the offsetting method.