3,337 TL of the minimum wage vanished in 5 months, purchasing power dropped to 18,766 TL

In the first five months of 2025, the official inflation rate of 15.09 percent according to TURKSTAT remained far behind the cost of living felt in real life. While market shelves, rent prices, and utility bills are crushing the citizens, the salaries of workers, civil servants, and retirees evaporated before they were even deposited into their accounts. The erosion in wages led to major losses in just five months.

According to reports by Nefes, while the erosion in the minimum wage earner's salary reached 3,337 liras, the loss experienced in the lowest civil servant salary approached 6,600 liras.

THERE IS A CHASM BETWEEN TURKSTAT AND ENAG

There is a serious debate regarding inflation calculations. The rates announced by the Turkish Statistical Institute (TURKSTAT) are half of the data from the independent research group ENAG. This difference shows that even according to official data, the loss of value experienced in salaries is actually much higher.

PURCHASING POWER HAS BEEN DESTROYED

According to the table calculated based on TURKSTAT's 15.09 percent 5-month inflation; the purchasing power of the lowest pension, which was 14,469 TL in January, fell to 12,284 TL as of May. This corresponds to a loss of 2,184 TL in just five months.

The salary of the lowest civil servant retiree fell from 19,616 TL to 16,654 TL. The loss in the minimum wage is also not to be underestimated: with an erosion of 3,337 TL against inflation, the purchasing power dropped to 18,766 TL.

The loss in the lowest civil servant salary, which is 43,698 TL including family allowance, reached 6,598 TL. While the average civil servant salary is calculated as 51,000 TL, the 5-month erosion in this income approached 7,701 TL.

In total, nearly 17 million retirees, over 7 million minimum wage earners, and 3.8 million civil servants are waiting for the difference that will be reflected in their salaries with the 6-month inflation data to be announced in July. However, it has already become clear that the expected increase will not be enough to compensate for the loss experienced.

Economists argue that it is no coincidence that TURKSTAT announces inflation rates that remain well below market expectations. It is claimed that the government is trying to suppress inflation with low raises under the name of 'tight monetary policy,' and therefore official data does not reflect real inflation. Those most affected by this situation are again the fixed-income segments.

RAISES WILL AGAIN CREATE DISAPPOINTMENT

Civil servants and retirees have turned their eyes to June data for salary adjustments to be made according to the inflation difference in the first half of the year. If June also comes in around 1.5-1.6 percent like May inflation, the total 6-month inflation will remain at the 16.5 to 17 percent level.

In January, civil servants and civil servant retirees received a 11.55 percent raise, while SSK and Bağ-Kur retirees received a 15.75 percent raise. In July, it has become almost certain that SSK and Bağ-Kur retirees will have to settle for an increase slightly below 17 percent, and civil servant retirees for an increase below 16 percent.

News Source: 12punto