Turkey may do more to protect both workers and businesses from the long-term economic fallout of COVID-19 pandemic restrictions as the country has already taken a host of steps, the chair of Parliament's Health, Family, Labor and Social Affairs Commission told Anadolu Agency (AA) on Friday.
While taking measures to protect public health amid the pandemic, Turkey launched a social assistance program in March 2020 to minimize the fallout of the virus on the labor market, Recep Akdağ said ahead of Saturday's May Day holiday, which honors workers nationwide.
In the months that followed, the country expanded the framework of the program in line with subsequent developments.
The support provided so far by Turkey's Social Protection Shield program to cater to public needs during the pandemic has topped TL 60 billion ($8.1 billion), he said.
The aid includes short-time work allowances, unpaid leave cash support, unemployment benefits and normalization support.
More than TL 30 billion was paid to 3.7 million people under the short-time work allowance, Akdağ stressed, adding that nearly TL 10 billion was given to workers who took unpaid leave.
Turkey also introduced a ban on employee layoffs while encouraging unpaid leave and increased the duration of the compensatory working practice.
Some 22 different insurance premium incentives, support and discounts have been applied to protect and boost employment amid the pandemic measures, according to data compiled by the Turkish Presidency.
The government encouraged businesses to increase employment with an Additional Employment Incentive, Return to Work Incentive and Premium Support for Women, Young People and Vocational Qualification Certificate, the presidency said.
Key support package
Akdağ said the government also announced a relief package to cushion the pandemic's impact on the economy, besides social welfare.
Citing International Monetary Fund (IMF) data released on April 6, Akdağ said that as of March, Turkey's total fiscal support package – including additional health care spending, cash aid and unemployment benefits, loan guarantees to firms and households, loan service deferrals by state-owned banks, tax deferrals for businesses, equity injections into public banks and value-added tax reductions on certain goods such as food and accommodation services – was 12.7% of the country's gross domestic product (GDP).
"When we compare it to other G-20 emerging markets, this ratio is very important and high for an emerging country like Turkey," he noted.
Akdağ stressed that besides the central government, individual city governments also provide support for tradespeople.
Regulations for remote working
As remote working models have been widely used during the pandemic to ensure social distancing, Akdağ said some regulations were changed thanks to prompt action by the Labor Ministry.
"Some regulations were adapted to remote working styles while helping new job creation," he explained, adding that similar actions will be taken in the coming days.
On the country's current full lockdown lasting through May 17, Akdağ said the government may consider introducing additional incentives if needed as the previously announced support packages are still in force.
Speaking as a former health minister (2016-2017), Akdağ said, "I wish it was possible to extend the lockdown period, but the balance between health and the economy had to be considered."