July pension hike becoming clear: New figures on the table for the lowest salary

As we enter the final week of June, more than 16 million retirees are eagerly awaiting the salary increase they will receive in July.

Following the June inflation data to be announced by the Turkish Statistical Institute (TÜİK) on July 3, the 6-month inflation adjustment for members of the SSK, Bağ-Kur, and Emekli Sandığı will be finalized. However, a legal regulation is required for the increase to be applied to the lowest pension.

CURRENT SYSTEM FORESEES HIKE ON BASE SALARY

According to Social Security Institution (SGK) legislation, the inflation adjustment is only reflected in the base salaries of retirees. Therefore, for millions of retirees currently receiving 14,469 TL to receive an increase in July, a legislative proposal must be submitted to the Grand National Assembly of Turkey (TBMM).

AKP HAS BEGUN PREPARATIONS

The AKP will submit a legislative proposal to Parliament in the second week of July to reflect the inflation rate increase in the lowest pension as well. According to the report by Besi Karalar from Ekonomim, two different scenarios are on the table in the ongoing work.

According to these scenarios, the lowest pension will be set at 16,850 TL or 17,100 TL. Both figures point to an increase parallel to the inflation rate.

It is estimated that approximately 4 million retirees will benefit from the legal regulation to be made. The total cost of the 6-month salary increase is expected to be around 60 billion TL. This regulation aims to raise the income of retirees, especially those with low base salaries.

The total inflation difference accumulated in the January-May period was 15.09 percent. If June inflation comes in at 1 percent, the total 6-month difference will rise to 16.24 percent.

In this case, the lowest pension will reach 16,819 TL with a 2,350 TL raise. If June inflation is 2 percent, the difference will be 17.39 percent, and salaries will increase by 2,516 TL to reach the 16,985 TL level.

However, these raises will only be reflected in the base salary. Therefore, a legal regulation is necessary for millions of retirees who have low base salaries and cannot directly benefit from this increase. The proposal to be submitted by the government aims to ensure that these retirees also maintain their level of welfare.