Turkey’s minimum wage of 17,002 lira is below even the hunger limit. The AKP government, which abolished the interim increase in July last year, has already announced a single increase in the minimum wage in 2025.
The Minimum Wage Determination Commission will begin its work in December to determine the minimum wage. However, President and AKP Chairman Recep Tayyip Erdoğan will have the final say.
Figures for the minimum wage have also started to be discussed.
According to the news of Besti Karalar from Ekonomim, the figure of 23 to 25 thousand has started to be discussed in the lobbies.
Target inflation or backward indexation?
Minister of Treasury and Finance Mehmet Şimşek is in favor of raising the minimum wage at the rate of expected inflation, not actual inflation. This means a raise even below the official inflation rate.
The ministry’s inflation expectation for 2025 is 17.5 percent. If the minimum wage is increased by the 17.5 percent inflation rate for 2025, the minimum wage will be 19,977 liras.
If the minimum wage is increased by the actual inflation rate (42 percent), it will be 24 thousand 142 liras.
If the minimum wage is increased to 25 thousand liras, the rate of increase will be 47.04 percent, and if it is increased to 23 thousand liras, it will be increased by 35.27 percent.