Labor minister acts as end-of-service compensation plummets due to currency devaluation

With much complaint and sorrow, private sector employees face the loss of end-of-service benefits after many years of struggle due to the collapse of the national currency's value.

For months, the Ministry of Labor, in collaboration with the Social Security Administration and the International Labor Organization, has been working on a comprehensive study to allow all employees benefiting from social security to choose between a "retirement pension" and end-of-service compensation.

Since the "Social Protection Project" in the parliament's General Assembly requires studies and some time to complete, it is mandatory to apply it optionally, based on the law that allows social security to have the right to do so. The matter is being discussed with the economic bodies that have given initial approval.

The Minister of Labor did not reveal the percentage of the final pension, as it is still subject to final touches with those concerned.

He promised to complete it within a week, stating that all increases in the cost of living in the index committee for the private sector and those subject to labor law would be included in the basic salary, raising the value of the pension.

The project, which Minister of Labor Moustafa Bayram received in its semi-final form on Thursday, will be applicable in a few months since it does not require parliamentary approval but rather a decree, as it will be temporary until a final law is completed within three years and becomes mandatory, allowing everyone to receive a retirement pension.

The Social Security Board of Directors should approve the current semi-final form. Then it will be presented to the Prime Minister and then to the Council of Ministers for approval.