Turkey bans layoffs, launches Salary support scheme in earthquake zone

On Wednesday, Turkey launched a temporary wage support scheme and banned layoffs in 10 cities to protect workers and businesses from the financial impact of the massive earthquakes that hit the country's south earlier this month.

The initiatives are part of the Turkish government's efforts to mitigate the economic consequences of Turkey's biggest earthquake in recent history, which killed tens of thousands.

Employers whose workplaces were "heavily or moderately damaged" would benefit from support to partially cover the wages of workers whose hours had been cut, the country's Official Gazette said on Wednesday.

In addition, layoffs have been banned in the ten earthquake-hit provinces that have declared a state of emergency.

The Turkish Parliament imposed a state of emergency for three months on Feb. 7, after a request by President Tayyip Erdogan.

The government also offered salary support and imposed a layoff ban in 2020 in an attempt to mitigate the economic blow of COVID-19. Business groups and economists have said the earthquake could cost Ankara up to $100 billion to rebuild housing and infrastructure and shave one to two percentage points off economic growth this year.