BRTK Warns Against Quarterly Minimum Wage Increases for Businesses
The Turkish Cypriot Women’s Entrepreneurial Association (GİKAD) has recently issued a statement addressing concerns about the impact of frequent minimum wage increases on businesses and the economy. According to GİKAD, setting a new minimum wage every four months can make it challenging to combat inflation and may even jeopardize the existence of some businesses.
The statement highlighted the potential consequences of a high minimum wage, suggesting that employers might resort to hiring unregistered, low-cost workers to offset the increased labor costs. While recognizing the importance of fair wages for qualified personnel, GİKAD emphasized the necessity of a more strategic and balanced approach to minimum wage adjustments.
One of the key points raised in the statement was the potential negative impact on foreign workers and international labor standards. GİKAD pointed out that neighboring countries often pay foreign workers significantly less than the proposed minimum wage in Turkey, which could result in an influx of unregistered workers and further exacerbate the issue of informal employment.
Moreover, GİKAD highlighted the link between minimum wage increases, rising costs, and inflation. The association warned that frequent wage hikes could lead to a cycle of inflation, where businesses are forced to increase prices to cover their rising expenses, ultimately affecting consumers and triggering more inflation.
Overall, GİKAD stressed the importance of a more measured and sustainable approach to minimum wage adjustments, urging for a strategy that considers the needs of businesses, prevents informal employment, and supports entrepreneurship, especially among women and small business owners. By finding a balance between fair wages and economic stability, GİKAD believes that businesses can thrive and contribute to the overall growth of the economy.
