The social security institution known as BAĞ-KUR covers tradespeople and artisans as well as those who do not have the opportunity to work in the public or private sectors — in other words, independent workers. By paying the contributions required by BAĞ-KUR, members can both qualify for a pension and access health services at very low costs. In this article we will address the BAĞ-KUR regular payment discount.
Persons not covered by the Social Insurance Institution or the Pension Fund may be subject to BAĞ-KUR. BAĞ-KUR provides services such as disability insurance, survivor’s benefits, and old-age insurance to its members.
In short, BAĞ-KUR is a social security institution established specifically for self-employed workers. Members of this institution pay their own contributions because there is no employer — they are considered employers themselves. Those in this status must pay contributions at least equal to 32% of the minimum wage. After the required period has elapsed, these paid contributions make members eligible for a pension.
BAĞ-KUR operates under the Social Security Institution framework. In addition to the members’ paid contributions, BAĞ-KUR collects various donations, fines, assistance funds, and testamentary funds. It also offers members loans for building homes and workplaces.
BAĞ-KUR applies a tiered system: during the contribution payment period the highest applicable tier is used to determine pension payments according to age, entry date and retirement date. Now let’s move on to the BAĞ-KUR regular payment discount.
Discount for Regular BAĞ-KUR Payments
Under a recently adopted omnibus law, BAĞ-KUR introduced a reward for members who make their contributions regularly in the form of a discount. A five-percentage-point BAĞ-KUR regular payment discount was approved by the legislature. Monthly contributions became approximately 82.35 TL cheaper. However, voluntary insured persons are excluded from this application and are not eligible.
To benefit from the BAĞ-KUR regular payment discount, contributions must be paid consistently and on time. Approximately two million people have benefited from this discount. Thanks to the discount, a monthly premium that would normally be 568.21 TL is reduced to 485.86 TL.
Since 2008, those who paid BAĞ-KUR contributions regularly had already benefited from a five-point contribution discount; extending the same reward to BAĞ-KUR members pleased many contributors. A large number of BAĞ-KUR members can benefit from the regular payment discount.
Which BAĞ-KUR Members Can Benefit from the Regular Payment Discount?
- Company partners
- Horse trainers and jockeys
- Village heads (muhtars)
- Agricultural BAĞ-KUR contributors
- Tradespeople who are taxpayers
The groups listed above are eligible for the BAĞ-KUR regular payment discount.
Voluntary SSK Insured Persons
Voluntary SSK insured persons also wonder whether they can benefit from a similar discount. Unfortunately, voluntary SSK insured persons cannot take advantage of this regular payment discount currently in force.
Conditions for Benefiting from the Discount
- BAĞ-KUR contributions must be paid regularly
- There must be no outstanding contribution debt past the final payment date
Certain conditions apply to benefit from the BAĞ-KUR regular payment discount. Those who choose to restructure BAĞ-KUR contribution debts can benefit if they consistently pay their installmented and current contributions. People who have been paying contributions regularly for a long time automatically receive the discounted rate and do not need to apply. However, creditable periods such as maternity, military service, or foreign service debt, and BAĞ-KUR revival discounts are outside the scope of this regular payment discount.
The introduction of the regular payment discount also aims to incentivize BAĞ-KUR members. It encourages timely contribution payments so that people prefer to pay regularly rather than only when health services are interrupted. At the same time, the incentive increases the total contribution pool for the Social Security Institution while reducing the out-of-pocket expense for BAĞ-KUR members, helping to alleviate hardship. Additionally, it contributes to reducing informal employment and better protecting workers’ rights. This is the BAĞ-KUR regular payment discount in summary.