Looking for Insured Caregivers

The rush for caregivers for working mothers has started again. Many working mothers are currently looking for caregivers, and I am one of them. Every working woman with a child (and some means) has faced the caregiver problem at some point in her life. While finding a good caregiver is certainly very difficult, finding one who will work with insurance is nearly impossible. According to the laws, caregivers also need to be insured, which is indeed a legal right, but the candidates do not want insurance. 

In the last month, I have spoken with 20-30 caregivers, and since we are obliged by law and because insurance is a social right, we want to insure the person we will employ. But for some reason, we have not yet encountered anyone who accepts insurance. As soon as everyone hears the word insurance, they say, "No, no, we do not want insurance, I am retired or I pay externally or my spouse has insurance or I am a disabled retiree," and then the question comes, "How much do you pay if there is no insurance?" No matter how much you say, "But we want to insure," you get the response, "But I do not want insurance" from the other side. 

Only one of them was barely convinced to talk to her spouse about insurance, but later said she found another job. Most likely, she is working for someone who does not insure and pays the money that would be paid for insurance to the employee.

The premium is very high
Let’s say you will employ a child caregiver at home, the gross minimum wage as of 01.07.2015 is 1,273.50 TL. When you pay a 37.5% premium (including unemployment insurance), the total premium you will pay is 477.56 TL. Although the amount coming out of your pocket may be around 1,500 TL, since the amount entering the caregiver's pocket will be the minimum wage, no one wants to work for the minimum wage. They state the amount they want, for example, 1,500 TL, and they look at you as if it does not matter whether you insure or not. If you say, "Let me pay 1,500 and also insure," the total amount you will pay exceeds 2,000 TL. 
Of course, this is if you can find someone who is not retired or does not have their own insurance and who 'accepts' insurance. If the person is retired (in case of re-insurance), the regime for benefiting from health services may change. In this case, when they hear the word insurance, their hair stands on end. On the other hand, if the person is insured elsewhere, they may find it beneficial to obtain this work as completely unregistered, uninterrupted income. 

Cüneyt Alihan Danar, an expert in labor and social security law and an expert lawyer, states that including workers in the scope of SGK (Social Security Institution) in home services is actually harmful to these individuals in terms of social security: "Those who work at least 10 days a month are now considered as insured under the 5510 law, just like a factory worker under 4/a. The effects of this can be explained as follows: If they are retired, their pension will be cut as long as the Social Security Support Premium is not paid. If they receive disability pension, their pension will be cut in any case. This means a decrease in the earnings of the domestic worker. If they benefit from their spouse's insurance, they will no longer be able to benefit from their spouse's insurance when they start working; they will be insured themselves. As a result of these effects, some domestic workers prefer to work uninsured. However, if you employ them uninsured, you will have to pay administrative fines related to working uninsured from SGK, as well as premiums with late fees and penalties.”

There is no obligation for contracts
Sometimes employers try to obtain a written statement from the domestic worker saying, 'I do not want insurance' in hopes of avoiding a possible fine. Prof. Dr. Erdem Özdemir from Marmara University Faculty of Law warns everyone that these contracts have no legal basis: "Because the provisions of the law are mandatory, and most importantly, the right to social security is a constitutional right that cannot be waived (AY m.60). The caregiver has no option to accept or reject insurance. Such contracts have no validity and will not save you from penalties.”   

10-day limit
It is certain that a serious regulation and correction in the legislation is necessary to encourage both caregiver candidates and families to insure. 
This regulation was made for those working less than 10 days in home services. 

According to the information provided by Prof. Dr. Erdem Özdemir, if your caregiver works more than 10 days, the premiums at a rate of 34.5% will be paid by real person employers. 20% of this premium is for long-term insurance branches, 12.5% is for general health insurance, and 2% is for occupational accident and disease insurance premium. Employers will also pay a 3% unemployment insurance premium along with the insured and employer share. 

Those working less than 10 days in home services will be considered insured under occupational accident and disease insurance. In this way, those who employ insured workers will not be considered employers for the insured they employ for up to 10 days (excluding 10). In this context, for each day they employ insured workers, they will pay occupational accident and disease premiums at a rate of 2% of the daily earnings lower limit subject to premium. Accordingly, when comparing the amounts to be paid when employing a caregiver for more than 10 days, there is a significant difference in premiums. Prof. Dr. Erdem Özdemir states that there are studies to support those in the position of employers in this regard: "Employment incentives can also be applied in terms of home services. In addition, with the project prepared by SGK, it is planned to provide financial support to ensure that mothers with small children who will enter or return to the workforce can employ child caregivers for the care of their children. This project aims to increase the registered employment of unregistered child caregivers and facilitate the processes of working mothers returning to their jobs after childbirth. We believe that the dissemination of these pilot projects and focusing on similar studies could be beneficial.”

Employers face multiple penalties
Prof. Dr. Erdem Özdemir lists the penalties that will be imposed on employers who employ uninsured caregivers as follows: 
- If the 'Declaration Regarding Those to be Employed for 10 Days or More in Home Services' is not submitted by the employer by the end of the month in which the work started, an administrative fine equal to the minimum wage will be imposed (1,273 TL). 
- If employers submit declarations outside the legal period, an administrative fine equal to one-fifth of the minimum wage will be imposed for each month. However, if it is determined through administrative and judicial inspections and findings that this declaration should have been submitted, the penalty will increase.
- If the insured who has been employed for 10 days or more in home services leaves the job, if the 'Declaration Regarding Those to be Employed for 10 Days or More in Home Services' is not submitted on time, a penalty equal to one-tenth of the minimum wage will be imposed. 
- However, in addition to penalties, there are also legal consequences. Especially if insured employments are detected as a result of administrative and judicial inspections and decisions, the premiums for these employments will also need to be paid to the Institution with high late fees.      
- Insured individuals can apply to the labor court within five years, and if they can prove their claims with the court decision, the total monthly earnings specified in the court decision and the number of premium payment days will be taken into account. 
- If a foreign worker is to be employed, a work permit is also required. Those who employ foreign domestic workers illegally are fined 8,381 TL according to Article 21 of Law No. 4817.

How to insure?
The notification of those working as insured for less than 10 days in home services is made with the 'Application Form for Those to be Employed for Less than 10 Days in Home Services'. Those who employ insured workers can notify by selecting the 'Home Services' section under the 'e-services' menu at www.turkiye.gov.tr .

The notification of insured workers who work for 10 days or more in a month in home services and the payment of insurance premiums must be done by filling out the 'Declaration Regarding Those to be Employed for 10 Days or More in Home Services' and submitting it to the units after being signed together with the insured worker. 

It is necessary to explain the benefits to the caregiver well
Vural Şeker, President of the Istanbul Private Employment Agencies Association, also states that they have difficulties regarding insurance, but habits do not form immediately, and the benefits of insurance need to be explained well: "Previously, domestic workers were covered by optional insurance and entered into negotiations by adding insurance costs to the price they requested. This was the difference that caused their wages to be higher among similar occupational groups. The total cost of a standard worker in a factory is not equal to the net minimum wage, but the worker does not evaluate based on the cost calculation; they measure the value based on the money that goes into their pocket. The new situation for workers in domestic services has led them to evaluate based on cost calculations. With the inclusion of costs in the work, the insurance, which benefits them in the long term and in many ways, has started to be perceived as a disadvantage since it takes away from the ready cash that goes into their pockets every month. We face these problems frequently... We often explain to them that being insured is beneficial and provides many benefits that can be measured in money. The health aspect of the job is evident. In addition, applications can be made for unemployment insurance. Insured work will also bring a level of institutionalization in work and relationships.”