A new study by Prof. Dr. Aykut Kibritçioğlu, an economist from the Turkish-German University, has revealed that salaries and wages in Turkey are rapidly approaching the minimum wage level, leading to serious problems in income distribution.
The research emphasizes that the minimum wage has been raised in recent years due to rising inflation, but other salary and wage groups have not been able to adapt to this increase. This situation causes real income loss and financial difficulties for a large segment of the population. Prof. Dr. Kibritçioğlu’s research examined the relationship between the minimum wage and national income per capita (GDP) for different income groups such as public employees, academics, manufacturing industry workers and SSI pensioners.
The results show that since the 2000s (especially since 2014), salaries have generally fallen to the minimum wage level and in some cases even below this level. In particular, the study reveals that pensions of pensioners and salaries of manufacturing and public sector employees have fallen below the minimum wage as well as GDP per capita.
This negative development covers approximately 20 million active and inactive SSI insured whose pensions are taken into account in the study. “Multiple minimum wage systems” can be implemented Prof. Kibritçioğlu argues that the current social security and minimum wage system should be reformed in favor of employees. In his study, he suggests the implementation of innovative policies such as a “multiple minimum wage system” to ensure a fairer distribution of income.
Convergence of Selected Pensions to Minimum Wage (1974-2024)
This system envisages setting different minimum wages for different titles and required qualifications and regularly updating these wages in line with inflation and per capita economic growth rates. For example, a pilot salary scale based on academic titles at public and foundation universities in Turkey could serve as a model for the applicability of this system across the economy. Union rights should be strengthened The study also draws attention to the need to strengthen union rights. It is emphasized that unions should be strengthened and existing barriers should be removed in order for employees to negotiate fairer wages.
Fundamental changes are needed to improve income distribution In conclusion, this study reveals that fundamental changes are needed to increase the economic welfare of a wide range of people in Turkey and to improve income distribution. The steps to be taken to ensure that minimum wage earners, as well as other income groups, are able to earn the level of income they deserve are of great importance for the construction of a more sustainable economic structure throughout the country.