Caglayan unveils details of a new incentive system

Economy Minister Zafer Caglayan yesterday provided important details regarding the government's new incentive system to be unveiled this month. Speaking to German reporters at the end of his contacts in Berlin, Caglayan said that net minimum wage would remain the same in the provinces which lag behind the socioeconomic development index and that the state would undertake the payment of some part of Social Security Institution (SGK) premiums in order to decrease employee costs in underdeveloped provinces in Turkey. "We want to establish a structure in which labor costs are minimized in certain provinces of certain regions in Turkey. In order to prevent migration, considerable investments should be made in underdeveloped provinces. We are of the opinion that employment-intensive sectors should be supported," Caglayan said, adding that the Ministry of Labor and Social Security has also been working on an employment incentive package which will be able to be used by enterprises as well.