Turkey expands employment protection program to manufacturing sector

Turkey is expanding its Employment Protection Support Program to include the manufacturing sector. Under new regulations published in the Official Gazette, manufacturers that maintain their employment levels will gain access to advantageous credit packages.

To qualify, businesses must maintain an average employment level from the first half of 2026 during the second half of the year. Eligible companies can access loans with a financing cost of 25 percent instead of 37 percent, representing a 12-point support. These credits offer up to 36 months in maturity with a 6-month principal grace period. Credit limits are set at 50 million lira for SMEs and 150 million lira for large-scale enterprises. The total financing support allocated for the manufacturing sector is 250 billion lira.

The program, which previously focused on labor-intensive sectors like textiles, leather, and furniture, has already provided 15.5 billion lira in support. According to official data, these measures helped maintain registered employment levels, which rose from 1.196 million at the end of 2025 to 1.209 million by June 2026.