What is the Ahilik Fund Application?
In Turkey, unemployment benefits are currently only given to people who are unemployed in certain circumstances while working under a service contract attached to an employer. On the other hand, it is not possible for the self-employed insured to receive “unemployment benefits” if they become unemployed for any reason.
The Tradesmen Ahilik Fund application was introduced in 2017 so that self-employed people can receive an allowance in the nature of “unemployment allowance” if they become unemployed for economic reasons. Accordingly, with the Law No. 6824 dated February 23, 2017, the Unemployment Insurance Law No. 4447 was amended (with the Additional Article 6 added to the Law No. 4447), and the Tradesmen Ahilik Fund was being established in order to make payments for a certain period of time to tradesmen who closed their workplaces due to their difficult financial situation. In this regard, legal regulations regarding the Tradesmen Ahilik Fund establishment have been made.
The Tradesmen Ahilik Fund application is carried out by charging an additional 3 percent social insurance premium, including 2% insured share and 1% State contribution, based on the daily earnings of the insured subject to premium specified in the Articles 80 and the Article 82 of the Code No. 5510. However, the daily premium amount to be received cannot exceed the amount calculated based on twice the lower limit of daily earnings subject to premium.
The Tradesmen Ahilik Fund application covers insured people working on their own behalf and account, excluding optional insured people, jockeys and trainers subject to the Law on Horse Racing No. 6132, village and neighborhood headmen and those engaged in agricultural activities.
Tradesmen Ahilik Allowance is an allowance that was introduced to prevent income losses that would occur if those insured in this way close their businesses or go bankrupt due to their economic difficulties and it is essentially in the same nature as “the unemployment allowance”.
If the insurance status is terminated for any reason, the Tradesmen Ahilik Fund premiums and the State share deducted from the insured up to that point will not be refunded. Premiums paid by the insured to the Tradesmen Ahilik Fund are considered as expenses in determining earnings and can be deducted from taxe basis.
The Amount of the Tradesmen Ahilik Fund Allowance
For Tradesmen Ahilik Fund insured people who have worked continuously for the last 120 days before the end of their insurance, Tradesmen Ahilik Fund allowance is given for a certain period of time due to their social insurance payment within the last three years:
- Those who continue their activities for 600 days and have paid the Tradesmen Ahilik Fund premium are given 180 days of allowance.
- Those who continue their activities for 900 days and have paid the Tradesmen Ahilik Fund premium are given 240 days of allowance.
- Those who continue their activities for 1080 days and have paid the Tradesmen Ahilik Fund premium are given 300 days of allowance.
Postponement of the Effective Date of the Tradesmen Ahilik Fund Application
Although the Tradesmen Ahilik Fund application was introduced in 2017, its implementation was postponed by various legal regulations. The postponement is made for avoiding extra social insurance premium load to the tradesmen. The Tradesmen Ahilik Fund, which was last planned to come into force on January 1, 2024, has been postponed to January 1, 2025 with the Law No. 7491.
If there is no postponement again, the Tradesman Ahilik Fund application will be implemented as of January 2025, and an additional 2 percent social security premium will be deducted from insured people working independently on their own behalf and account as tradesmen.
