Civil servant and retiree salary hikes and rent increase rates determined

October inflation data, which concerns millions of civil servants, civil servant retirees, and SGK and Bağ-Kur retirees for the remaining months of the year, has been announced.

In October, monthly inflation was 3.43 percent. Accordingly, SGK and Bağ-Kur retirees have already qualified for an inflation adjustment of 9.49 percent for July, 9.09 percent for August, 4.75 percent for September, and 3.43 percent for October. Thus, the cumulative hike rate they have earned in just 4 months reached 29.40 percent. However, since this hike will be reflected in January salaries, it will be calculated cumulatively based on the monthly inflation announced each month. The inflation data for November and December are still pending.

DIFFERENT FOR CIVIL SERVANTS AND CIVIL SERVANT RETIREES

In the 7th Term Public Collective Bargaining Agreement negotiations, where financial and social rights for 2024-25 were determined, it was finalized that civil servants and civil servant retirees would receive a 15 percent raise for January 2024. Due to October inflation coming in at 3.43 percent, civil servants and civil servant retirees have also already qualified for a raise above the rate stipulated in the collective agreement. For civil servants and civil servant retirees, the raise is determined in January as a result of the cumulative monthly calculation of inflation rates. For this, the inflation data for the remaining months of October, November, and December are awaited.

(Note: If the inflation rate is announced as negative, there may be a decrease in the calculated cumulative rate; the difference to be reflected in salaries will be determined according to the inflation data to be announced in the coming months)

ALSO DETERMINING FOR MINIMUM WAGE

The increase in the inflation rate is also a determining factor for the raise to be applied to the minimum wage. Although it is not a binding figure, inflation rates are brought to the agenda during the Minimum Wage Determination Commission meetings as purchasing power parity is discussed, and raise rates based on inflation are announced by the commission.

RENT INCREASE RATE FOR COMMERCIAL PROPERTIES DETERMINED

With the announcement of October inflation, the rent increase rate for commercial properties has been determined. The Turkish Statistical Institute announced the inflation rates for October. Inflation was 3.43 percent monthly and 61.36 percent annually.

The rent increase rate for commercial properties stood at 54.26 percent. Thus, business owners whose lease contracts expire this month will make payments by applying a 54.26 percent increase to their rent. Last month, the increase rate was 55.30 percent.

The rent increase rate for residential properties will be 25 percent until July 2, 2024.

News Source: 12punto