Law No. 7573 on Amendments to Certain Laws and Decree Law No. 375
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Law No. 7573 introduces significant changes to Turkish public personnel law by tightening candidate civil servant dismissal rules and updating disciplinary statute of limitations. It extends VAT exemption periods until 2030, provides substantial social security premium support to private sector employers throughout 2026 (with daily amounts of TL 42.33 and higher thresholds for collective bargaining workplaces), and waives certain recourse claims for severance payments made by public institutions to subcontractors between 2014 and 2019. The law also expands oversight of shared electric scooters under the Traffic Law, broadens the scope and exemptions of the Turkey Wealth Fund, and makes minor adjustments to media, cybersecurity, and Istanbul Finance Center regulations.
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Key Changes
- Candidate civil servants who fail training or receive multiple disciplinary penalties (warnings, reprimands, salary cuts or grade progression stops) will be dismissed and barred from state employment for 3 years (health reasons excluded)
- Disciplinary penalty statute of limitations set at maximum 2 years from the date of the act; allows re-imposition within remaining time or at least 6 months after court annulment
- Private sector employers receive 2026 social security premium support of TL 42.33 per day per employee (TL 2,600 daily threshold for collective bargaining workplaces), limited to 2025 levels
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Obligations
What this law requires
Civil servant candidates who fail training/internship phases, receive multiple warnings/reprimands, or receive salary deduction/promotion suspension penalties must have their employment terminated upon recommendation of disciplinary superior and approval of appointing authority. Terminated candidates cannot be hired as civil servants for 3 years (except for health reasons).
Disciplinary penalties must be issued within 2 years from the date the disciplinary offense occurred. After 2 years, the authority to impose penalties lapses. If a court annuls a disciplinary penalty, new penalties may be imposed within 6 months if the original statute of limitations has expired or less than 6 months remain.
Traffic authorities must monitor shared electric scooter operations, document violations through administrative fine reports, and issue administrative fine notices to responsible parties for non-compliant shared electric scooter activities.
Private sector employers must apply for social security premium support in 2026 by reporting employees with daily earnings of TL 1,300 or less (TL 2,600 for collective bargaining workplaces) in monthly premium reports or summary premium declarations. Support is calculated at TL 42.33 daily and deducted from employer premiums.
Private sector employers claiming social security premium support must maintain continuous compliance: file monthly premium reports timely, pay insurance premiums on time, not engage in fraudulent transactions, maintain minimum reported insured employee numbers from 2025, and declare accurate wage bases. Failure results in recovery of support amounts plus penalties.