Social municipalism in the context of minimum wage, poverty, and hunger thresholds

1. Current Minimum Wage and Hunger-Poverty Threshold Data

The minimum wage to be applied throughout the 2025 fiscal year has been announced. As we enter another new year where the minimum wage has become the average wage, and millions of our citizens struggle to survive on an insufficient income below the hunger and poverty thresholds amidst high inflation, income inequality, and a constant decline in purchasing power, they are demanding stronger social and economic policies and solidarity from both central and local governments.

The 2025 minimum wage level has unfortunately been set far below expectations, despite high inflation, the revaluation rate, the decline in real wages and associated purchasing power, and distortions in income distribution. The net minimum wage, which was 17,002 TL in 2024, has increased by 30% to 22,104 TL in 2025.

According to data published regularly every month for 37 years by the TÜRK-İŞ Confederation to reveal the living conditions of workers and determine the reflections of price changes in basic necessities on family budgets:

• The monthly food expenditure amount required for a family of 4 to have a healthy, balanced, and adequate diet (HUNGER THRESHOLD) has risen to 20,562 TL,
  
• The total amount of mandatory monthly expenditures for food, clothing, housing (rent, electricity, water, fuel), transportation, education, health, and similar needs (POVERTY THRESHOLD) has risen to 66,976 TL,
• The 'cost of living' for a single worker has risen to 26,712 TL per month.

In this situation, the net minimum wage is currently only 7.5% above the hunger threshold for November announced by TÜRK-İŞ, while reaching only 33% of the poverty threshold. The minimum wage is only 1,543 TL higher than the November 2024 hunger threshold announced by TÜRK-İŞ.

The gravity of the situation increases further when we consider that this minimum wage will be applied throughout the 2025 fiscal year. It is expected that the net minimum wage will fall below the hunger threshold in the first quarter of 2025.

This situation shows that low-income segments still face serious difficulties in meeting their basic living costs. Especially in an environment where food inflation is at high levels such as 63%, the purchasing power of minimum wage earners is quite limited. These conditions make the policies implemented by local governments within the framework of social municipalism even more critical.

2. Social Municipalism and Food Security: The Role of City Restaurants

The life and economic arrangements focused on individual interests brought about by the free market economy are increasingly exacerbating the problems of segments described as "disadvantaged," "social risk groups," and "socially excluded groups." In this case, while the concept of the social welfare state, which imposes obligations on the state regarding social assistance, social services, and social policy, comes to the fore, SOCIAL MUNICIPALISM is evaluated as a reflection of the social state concept at the local government level.

Projects developed by local governments with the understanding of social municipalism provide support to the poor, children, the disabled, the elderly, women... and disadvantaged, vulnerable groups. "City Restaurants" (Kent Lokantaları), which have recently become widespread, have become even more important in this conjuncture as an important support mechanism for meeting the healthy, secure, and scientifically necessary food needs of low-income citizens by offering healthy meals at affordable prices.

Scientific research reveals that food security is critical in mitigating the effects of economic crises. For example, the World Health Organization (WHO) emphasizes that low-income individuals experience health and labor force participation problems due to malnutrition.

By providing affordable meal services, city restaurants not only ensure food security but also increase social solidarity and allow household budgets to be allocated to other basic needs.

Projects like the Bursa Metropolitan Municipality's City Restaurant reach thousands of citizens by offering low-cost daily meals and constitute a concrete example of the social municipalism approach.

Let us assume that the sample family of 4 in the Türk-İş calculation lives in Bursa, and they eat two meals a day at our municipal subsidiary BURFAŞ cafes—where water is 5 TL, tea is 10 TL, coffee varieties sold in the market for between 90 and 120 TL are 30 TL, and dill and kashar cheese pastries are offered for 20 TL—and at the Bursa Metropolitan City Restaurant where the people of Bursa can eat a 4-course meal for 60 TL.

In these facilities of the Bursa Metropolitan Municipality, the monthly food expense of our family of 4 will be 18,000 TL:

• For lunch and dinner (2 meals), the daily cost for a family of 4 is 60*2*4=480 TL, and the monthly cost is 480*30=14,400 TL.
• For breakfast, the daily cost for a family of 4 for tea and pastry is 30*4=120 TL, and the monthly cost is 120*30 = 3,600 TL.
• Thus, by meeting the criteria for a healthy, balanced, and adequate diet for a family of 4 living in Bursa, thanks to these services of the Bursa Metropolitan Municipality, the Türk-İş hunger threshold for citizens in Bursa will have been pulled down by 2,562 TL, or 12.46% ((20,562-18,000)/20,562).

At this simple level, we can also name the financial impact created by municipalities solely through city restaurant projects the "SOCIAL MUNICIPALISM INDEX." This index, which will be measured with different dimensions and indicators by taking into account the financial effects of other social assistance, social services, and SocioEconomic policies of municipalities, should be calculated for all municipalities, and the level of social municipalism of the municipalities should be revealed. This index, which will take into account simple, understandable dimensions and indicators, should be calculated and updated at certain periods. Thus, the social policy performances of municipalities and their rankings in the social municipalism index will also be revealed based on data-driven, objective criteria.

3. Women's Labor and Equality: The Social and Economic Impact of Daycare Centers

Daycare services offered by local governments to increase women's participation in the workforce and support children's development are an indispensable part of social municipalism. According to 2024 TUIK data, the labor force participation rate of women is 34.6%. This rate is quite low compared to the 50–60% levels in developed countries, and the inadequacy of daycare services is one of the main reasons for this.

Daycare services increase women's participation in the workforce and business life, support children's cognitive and social development, ensure the child's participation in educational life and social life, save children at a young age from underground places under different names under the management of sects and cults, and also alleviate the economic burden on families.

Free or low-cost daycare centers offered by municipalities act as an economic lifeline, especially for families living on minimum wage.

4. The Economic and Psychological Impact of Social Assistance

Social assistance, social services, and SocioEconomic policies offered by municipalities have a critical importance in reducing the social costs created by economic crises. Social and economic support such as food, fuel, scholarships, clothing aid, and direct income support to retirees, farmers, and those in need play a vital role in meeting the basic needs of the most vulnerable groups.

While social assistance provides a direct contribution to household income, it also reduces the feeling of poverty and social exclusion and strengthens social solidarity.

5. Conclusion and Recommendations

A new year awaits us where the minimum wage has become the average wage, and millions of our citizens struggling with high inflation, an increasing hunger-poverty threshold, and low purchasing power are demanding stronger social and economic policies and solidarity from central and local governments.

Social municipalism projects and practices play a critical role in mitigating the effects of SocioEconomic inequalities and strengthening social solidarity. To make such projects of local governments sustainable; practices such as City Restaurants should be expanded, free or low-cost daycare services should be increased, social assistance should be planned to reach wider audiences, and more financial and administrative support should be provided to local governments by the central government.

Within the framework of the Social Municipalism approach, more shares should be allocated to social expenditures in municipal budgets, and more comprehensive and diverse projects should be carried out to improve the situation of the poor, children, the disabled, the elderly, women... and disadvantaged, vulnerable groups, and to develop urban culture and the city's development.

The SOCIAL MUNICIPALISM INDEX, which will be measured with different dimensions and indicators, should be calculated for all municipalities, and the level of social municipalism of the municipalities should be revealed. This index, which will take into account simple, understandable dimensions and indicators, should be calculated and updated at certain periods. Thus, the social policy performances of municipalities and their rankings in the social municipalism index will also be revealed based on data-driven, objective criteria.

Social municipalism practices should be evaluated not only as temporary solutions to mitigate the negative effects of economic crises but as long-term strategies that ensure social solidarity and social justice.

In this process, cooperation and coordination between local governments and central government have become a necessity, not an option. This approach will also play an important role in Turkey's achievement of a fairer and more egalitarian society and its sustainable development.