11.03.2008 - Source: US Department of State

Conditions of Work ("Country Report on Human Rights Practices 2007") [ID 22980]

"The national minimum wage of approximately $495 (585 lira) per month did not provide a decent standard of living for a worker and family. All workers covered by the labor law are also covered by the law establishing a national minimum wage. This law was effectively enforced by the Ministry of Labor Inspection Board.

The law establishes a 45-hour workweek with a weekly rest day, and limits overtime to three hours per day for up to 270 hours a year. Premium pay for overtime is mandated but the law allows for employers and employees to agree to a flextime schedule. The Labor Inspectorate of the Ministry of Labor effectively enforced wage and hour provisions in the unionized industrial, service, and government sectors, which covered approximately 12 percent of workers. Workers in other sectors had difficulty receiving overtime pay, although by law they were entitled to it.

The law mandates occupational health and safety regulations; however, in practice the Ministry of Labor Inspection Board did not carry out effective inspection and enforcement programs. Workers have the right to remove themselves from situations that endangered health or safety without jeopardy to their employment, although reports of them doing so were rare. Authorities effectively enforced this right."

Document(s): Open document

06.11.2007 - Source: European Commission

Labour market and employment ("Turkey 2007 Progress Report [SEC(2007) 1436]") [ID 22482]

"Labour force participation rates are low, particularly for women and older people, and increased only marginally in 2006 and 2007. The fast-growing working-age population and the sectoral shift out of agriculture create a strong demand for new jobs, but due to the limited diversity of the rural economy, a skill mismatch and labour market rigidities major imbalances pertain. There have been few systematic efforts to reduce the substantial employment in the informal economy. No significant changes have been made to the labour framework. The legal focus remains on protecting jobs, while less than 4% of the unemployed workforce get unemployment benefits. The non-wage costs of hiring labour remain large. Active labour market policies do not have a broad scope and have had limited success in reducing unemployment. Corporate income tax rates are high and complex, although reductions have recently been introduced. Taxes on labour (personal income tax rates –PITand social security contributions) are also relatively high. This system contributed to creating incentives for self-employed entrepreneurs to remain in the informal part of the economy. In 2006, the top PIT rate was reduced from 40% to 35% and the number of brackets down to four. Overall, the situation in the labour market remains challenging and policy responses have been limited.
[...]
The share of agriculture in employment decreased from 30% of total employment in 2005 to 27% in 2006. Jobs were created in the industrial sector (including construction) and its share in the total labour force rose from 24% to 26.5% in 2006. Employment in the services sector increased from 42% in 2005 to over 47% in 2006. For the first time in five years, job creation in industry and services fully compensated for the reduction in agricultural employment. The relative size of agriculture fell from 10.3% in GDP in 2005 to 9.2% in 2006. The industry (including construction) proportionally remained stable at roughly 31% of GDP. Services increased to about 60% of GDP. The informal economy has remained sizeable, affecting the competitiveness of the economy. Overall, the process of structural transformation of the economy accelerated."

Document(s): Open document

06.11.2007 - Source: European Commission

Employment policy ("Turkey 2007 Progress Report [SEC(2007) 1436]") [ID 22485]

"There is little progress to report with regard to employment policy. In 2006, the unemployment rate fell to 9.9 %, while the overall employment rate – at 43.2% –was slightly down compared to 2005. The labour market is characterised by low labour force participation and low employment rates, in particular for women, and high levels of youth unemployment. The large size of the informal economy and the marked rural/urban divide in the labour market are the main challenges. More than half of those in employment are not registered with any social security institution. The Prime Minister’s circular on combating undeclared work identifies various targets and activities. However, more concrete policies and measures, including greater inspection capacities, are needed in order to tackle the problem together with the social partners. No further progress was made in finalising the Joint Assessment Paper on Employment Policy Priorities (JAP). The Turkish Employment Agency (ISKUR) continued its efforts to improve its institutional capacity."

Document(s): Open document