Unemployment Insurance Fund Usage Rises to 50% Amid Criticism

The Turkish government has increased the utilization rate of the Unemployment Insurance Fund from 30% to 50%, as stipulated in a Presidential Decree dated July 13, 2025 (No. 10072). Published in the Official Gazette, the decree states that a larger portion of the fund’s income will now support employment-enhancing measures and labor market services.

The regulation refers to Article 48 of Law No. 4447, allowing the fund to be directed toward broader objectives such as upskilling workers, mitigating unemployment risks, and strategic labor market planning. The Ministry of Labor and Social Security is responsible for implementing the changes.

However, the decision has sparked strong criticism from economists, particularly İnan Mutlu, who voiced concern over the fund being diverted from its core purpose. Sharing his thoughts on social media, Mutlu stated:

 “The Unemployment Insurance Fund has turned into a feeding trough. It keeps being used for everything but the unemployed. Only 48% of applicants received unemployment benefits in the first five months. Instead of easing access to aid, look what they’re doing…”

Mutlu emphasized that the fund’s resources are increasingly allocated to areas beyond unemployment support, reinforcing concerns about transparency and fund management. The latest move adds fuel to ongoing public debate about whether the Unemployment Insurance Fund still serves its original purpose or has become a financial backstop for unrelated policies.

The topic continues to stir discussion, especially regarding the percentage of applicants who actually receive unemployment benefits versus the broader policy agenda tied to the fund.