Millions turn their eyes to Parliament: There is a pension raise, but not for everyone!

The Grand National Assembly of Turkey (TBMM) was scheduled to go on summer recess as of July 1. However, the fact that the pension raise regulation, which concerns millions of retirees, would not be ready by this date caused great reaction and panic. If Parliament were to close without a pension raise regulation being enacted, the prospect of approximately 4 million retirees receiving a “zero raise” in July had come to the agenda.

Following these developments, the recess of Parliament was postponed to July 31 with a decision published in the Official Gazette. Thus, the legal basis for enacting the regulation for retirees was preserved. With Parliament continuing to work during this period, new legislative proposals for the raise regulation are expected to be submitted.

THERE IS A RAISE, BUT NOT FOR EVERY RETIREE

The TÜİK data to be announced on July 3 will be critical for pension salaries. With the June inflation to be announced, the 6-month inflation difference will be finalized. This rate will be directly reflected in the salaries of SSK and Bağ-Kur retirees.

However, there is an important detail here: According to SGK legislation, inflation differences are only applied to base salaries. This means that millions of people who still receive the lowest pension may not experience any increase in their monthly payments. A legislative change is required for this group to receive a raise.

NO RAISE WITHOUT LEGISLATIVE CHANGE

Sources close to the government suggest that the inflation rate will be reflected exactly in the lowest pension as well, and that a legal regulation will be submitted to Parliament for this purpose. Thus, it is aimed to prevent approximately 4 million retirees from facing a zero raise.

However, this regulation has not yet been submitted to Parliament. Although this possibility is kept alive with the postponement of the recess, millions of retirees are still waiting for a clear decision.

HOW MUCH WILL THE LOWEST PENSION BE?

It is stated that the government does not plan any welfare share increase and that only the 6-month inflation difference will be reflected in the salaries. According to calculations made by economists taking into account the first 5 months of inflation data, retirees are expected to receive a raise of approximately 16% in July.

If this rate is directly reflected in the lowest pension, which is currently 14,469 TL, it seems possible that the lowest monthly salary will rise to 16,784 TL as of July.

For this increase, a parliamentary decision is required again. Otherwise, only those receiving base salaries will benefit from the increase, and those receiving the lowest salary will have to settle for a “zero raise”.