New Minimum Wage for January 2025: What to Expect – Latest Update
Predictions on Minimum Wage Increase in 2025
With the end of the year approaching, discussions and predictions about the new minimum wage in 2025 have started to surface. Unlike previous years, where interim increases were implemented, there has been no such adjustment for the year 2024.
Millions of employees are eagerly awaiting news on the minimum wage increase. The big question on everyone’s mind is whether the minimum wage will be based on the expected inflation rate or the actual inflation rate for the upcoming period. According to the recently announced Medium Term Program (MTP), it is projected that annual inflation will decrease to 41.5% for 2024 and 17.5% for 2025.
Minister of Labor and Social Security, Vedat Işıkhan, has made it clear that the government is dedicated to protecting the welfare of its citizens and ensuring long-lasting solutions. He emphasized that the same approach taken in previous years will be followed for the determination of the minimum wage for 2025.
Three different scenarios regarding year-end inflation have been discussed, with estimates ranging from 39.98% to 48.45%. According to surveys and projections, the year-end inflation rate is expected to be around 45%.
As for the potential increase in the minimum wage, speculations range from 20% to 50%. It is anticipated that there will be an increase between 30% and 40%, with the new minimum wage estimated to be between 22,102 TL and 23,802 TL.
Inflation data from previous years indicate that adjustments have been made above the actual inflation rate. The determination of the minimum wage involves a deliberation process among 15 individuals, including representatives from labor, employers, and the Ministry of Labor.
It is suggested that the minimum wage increase in 2025 will be the last significant adjustment before inflation rates stabilize in the following years. The negotiation process between employees and employers, mediated by the government, is expected to result in a fair and balanced decision.
Overall, efforts are being made to protect low-income and minimum wage earners through various support and incentive programs. The final decision on the minimum wage increase for 2025 will undoubtedly impact millions of workers and their families across the country.
