Minimum wage statement from Minister Işıkhan

Minister Vedat Işıkhan attended the deliberations for the 2025 Central Government Budget and the 2023 Final Account Law Proposal, which are being discussed in the Grand National Assembly of Turkey (TBMM), and delivered a presentation to the deputies.

Stating that the goal is to carry achievements further and offer a better future to every member of our nation with the vision of the Century of Turkey, Işıkhan said, "Our 2025 budget is a budget prepared to serve this purpose. We stand before you with a plan that meets the needs of the labor market, strengthens the social security system, and accelerates our country's economic development. As a Ministry, 2024 has been a year we are proud of in terms of serving our nation through the programs and projects we have implemented. These successes are a concrete reflection of the steps we have taken to make our people's working life safer, more peaceful, and fairer."

Işıkhan spoke as follows:

"As the Ministry, I would like to provide you with information about the work we have done for the earthquake zone. As you all know, immediately after the disaster of the century, we took rapid action to protect our employers and employees in the region and implemented comprehensive measures. To briefly recall, with a budget exceeding 21 billion liras in total, we activated the Short-Time Work Allowance to ensure our employees do not lose their jobs, and the Cash Wage Support for our citizens who could not benefit from short-time work or unemployment benefits. We allocated a budget for the Community Benefit Program (TYP) for approximately 66 thousand people to ensure that important public services in the region continue without interruption. Thanks to this and dozens of other efforts I cannot list here, we see that recovery has been achieved rapidly in the 11 provinces most affected by the earthquake. Before the earthquake, in December 2022, the number of insured workers in these provinces was recorded as 1 million 889 thousand, while as of September 2024, this number has reached the level of 1 million 872 thousand."

Stating that the National Employment Strategy was prepared with a goal that will form the cornerstones of working life in the new period, Işıkhan said, "With this strategy, while evaluating the opportunities brought by digital and green transformation, we aim to ensure skill alignment in the labor market against emerging challenges, further strengthen the link between education and employment, restructure social protection systems in a way that encourages employment, and create sustainable employment opportunities by increasing economic diversity in rural areas."

Stating that "As of October, our labor force has increased by 1 million 232 thousand in the last year, reaching the level of 36.1 million," Işıkhan continued:

"Our employment has increased by 1 million 31 thousand in the same period, rising to 33 million people. The number of unemployed has been recorded as 3.1 million, and the unemployment rate has declined to 8.8 percent. Our unemployment rate, which has been in single digits for the last 18 months, is progressing in full compliance with the Medium-Term Program (OVP) targets. This success reinforces not only economic growth but also social justice and social welfare. In the next three-year period, we aim to increase employment by an average of 758 thousand people annually and permanently pull the unemployment rate down to single-digit levels despite the expected increase in labor force participation rates. We are also taking significant steps regarding the inclusion of our young population in the labor market. According to TUIK data, the youth unemployment rate has decreased by 8.6 points in the last 5 years, falling to 16.6 percent as of October 2024. The rate of young people who are neither in education nor in employment is also decreasing remarkably. Compared to 2020, this rate, which has fallen to 26.3 percent with a 2.1-point drop, is concrete proof that we are bringing our youth together with more education and job opportunities. We have carried out important projects in women's employment: We have strengthened the place of women in working life with the Positive Discrimination in Women's Employment Project, the Women's Hand in Every Profession Project, and other projects. With the Job Positive Program, we brought 750 thousand women into employment in 2024."

Regarding the minimum wage, Işıkhan said, "The minimum wage not only determines the living standards of our employees but also plays a critical role in ensuring social justice and economic growth. As the Ministry, we act with the awareness of this fact, and we are making the utmost effort to ensure that the minimum wage is determined in a balanced manner for both our employees and our employers. In the previous period, as a result of the work of the Minimum Wage Determination Commission, we increased the minimum wage to the level of 17 thousand 2 liras net. As you know, the Minimum Wage Determination Commission began its work on December 10, 2024, and held its first meeting to determine the minimum wage to be applied in 2025. The second meeting will be held on Monday, December 16. Furthermore, we have strengthened the Minimum Wage Support where necessary, which we initiated to increase the income of our workers. As of 2024, we increased this support to 700 liras per month. In the first nine months of the year, we provided a total of 38 billion liras in minimum wage support to approximately 1.5 million workplaces."

Stating that some municipalities changed hands in the elections held on March 31, 2024, Minister Işıkhan said, "After the local elections held on March 31, 2024, notifications/complaints have been received by our Guidance and Inspection Presidency from unions and workers regarding municipal employees whose administrations have changed, concerning the non-implementation of collective bargaining agreement provisions, mass layoffs, obstruction of trade union freedoms, and issues contrary to the principle of mobbing/equality. In the examinations conducted, steps were taken to impose a total of 26 million liras in administrative fines, primarily on the Van and Iğdır municipalities and their affiliates. Criminal complaints have also been filed with the Public Prosecutor's Offices regarding the identified violations of legislation that constitute crimes."

Providing some information regarding the Social Security Institution (SGK), Işıkhan said, "For a comprehensive and sustainable social security system, the collection of SGK's premium revenues is very important to us. When I announced it in the first months of this year, municipalities had a total premium debt of 96 billion liras. Unfortunately, because some municipalities persistently do not pay their premium debts, the premium debt of municipalities has risen to approximately 160 billion as of today. SGK's premium revenue in the first nine months of 2024 is 2 trillion 15 billion liras. Look, by not paying on time and referring to enforcement; approximately 46.6 billion liras have been collected in an 11-month period, the majority of which are from private sector employers. 11 billion 750 million of this collection is municipal premium debt. In the worker and civil servant insurance branch, 24.3 percent of the total SGK receivable is the debt of municipalities."

News Source: 12punto