“Anticipation Grows: Two Criteria for Minimum Wage Increase Awaited by Millions”
Certified Public Accountant Ahmet Kurtuluş has made a prediction on how much the minimum wage will increase for workers in Turkey. He stated that two main criteria will be taken into account: inflation rate and exchange rate. Kurtuluş believes that the inflation rate announced by the Turkish Statistical Institute at the end of the sixth month will be the determining factor for the minimum wage increase.
Currently, the minimum wage is around 454 dollars, and the exchange rate is approximately 19.50 Turkish liras to one dollar. If the exchange rate rises to around 22 liras and inflation remains at 20 percent in the sixth month, Kurtuluş predicts that the minimum wage will be determined to be 10,000 Turkish liras. However, if the exchange rate and inflation increase, he estimates that the minimum wage will be around 11,000-11,500 Turkish liras.
President Erdogan has also announced an increase in the welfare share for workers between 250-500 Turkish liras, above the inflation rate announced in previous periods. This increase in welfare share is expected to continue for the upcoming minimum wage increase as well.
As for civil servants and retirees, Kurtuluş predicts an increase of 30 percent for both groups. Minister of Labor and Social Security, Vedat Bilgin, has also stated that they will make a new regulation regarding the minimum wage in July due to the cost of living eroding wages.
When asked if the minimum wage will rise to 5 digits, Bilgin did not give a specific number but stated that they evaluate parameters such as price increases, general level of prices, and real purchasing power of wages.
Overall, many workers in Turkey are eagerly awaiting the upcoming minimum wage increase and hoping for a significant raise to keep up with the rising cost of living.
