Strongest Expectations for Minimum Wage Hike Marathon
Turkey’s Minimum Wage Determination Commission will begin discussions on setting a new minimum wage figure on June 13th, with the meeting hosted by the Ministry of Labor and Social Security. The delegation of TÜRK-İŞ, representing workers, and the Turkish Confederation of Employer Unions (TİSK), representing employers, will attend the meeting. According to Sworn-In Certified Public Accountant and Economist Muhammet Bayram, the inflation rate in June will factor into the decision, along with other parameters. Previously, inflation plus welfare share was taken into account when determining the minimum wage, but this time the parameters have changed.
It is estimated that if public workers’ 45% raise is taken as a reference, the minimum wage will increase to between 11,500 to 12,500 TL or $500. However, the demands of TÜRK-İŞ and TİSK have not been disclosed. It is assumed that the tax exemptions on the minimum wage will continue, and other incentives given by the government may also be on the agenda. The government may consider increasing the minimum wage supports and insurance premium incentives for private sector enterprises to mitigate the negative effects of the minimum wage on employers.
The salary base for civil servants is set at 22,000 TL, and it is promised that they will not earn less than public workers. Retirees are expected to receive an increase in inflation and welfare shares, with the lowest pension rising from 7,500 TL to 10,000 TL, and a gradual increase for those receiving more than 7,500 TL. The discussions of the Minimum Wage Determination Commission are eagerly awaited by more than 7 million employees and all citizens indirectly affected by the decision.
