Minimum wage, pension hike, and severance pay forecast! The figures are becoming clear...

Vice President Cevdet Yılmaz spoke yesterday regarding the regulation on pension salaries. Yılmaz stated, "We will continue to stand by our retirees by completing the work by the end of the year. We will have an approach that supports those receiving lower amounts."

Regarding the severance pay regulation, Yılmaz said, "We do not have any work on this at the moment. We have a policy that we always state. We have a principle on these issues that concern broad segments of the working population. We have never taken steps on these matters without reaching a consensus with the unions, and we will not do so. Everyone should be assured in this regard."

HOW MUCH WILL THE LOWEST PENSION BE?

According to a report by Milliyet, millions of retirees have their eyes and ears turned to the raise rates. So, how much of an increase will be made to the lowest pension? Economist Muhammet Bayram announced the strongest estimate on the table.

Bayram stated the following in his explanation:

"As of the beginning of the year, an increase of at least 40-45 percent, including the inflation adjustment, will be provided to our retirees. However, the regulation in question concerns whether an increase will be made in October. The lowest pension remained at the same level. The 7,500 TL level is truly a low level. Mr. Binali Yıldırım had also pointed to October. This will absolutely be discussed in the Cabinet.

In the previous period, Mr. Devlet Bahçeli also had a call for a flat-rate raise for the lowest pension. I believe that an interim regulation will be made for the lowest pension within the month of October.

Following the statement that the main regulation will be at the end of the year, as indicated by Mr. Cevdet Yılmaz, I believe the primary regulation will take place at the beginning of the year. The regulation to be made in October could be an interim raise aimed at those receiving the lowest pension."

SEVERANCE PAY DEBATE

Developments regarding the severance pay fund have been widely discussed. The first spark was ignited by TÜRK-İŞ President Ergün Atalay. Regarding severance pay, Atalay stated, "This is the worker's right; it cannot be associated with retirement." This was misunderstood. The real reason for the statement was the question of whether the Supplementary Pension System (TES) would be introduced during the announcement of the Medium-Term Program (OVP). TES was a matter where the employer could also deposit premiums on behalf of the employee. I do not believe it is possible for severance pay to come to an end with the introduction of TES.

Severance pay is a worker's right; a worker becomes entitled to receive severance pay based on their gross salary including benefits for each year they have worked. I do not think there will be any attempt to abolish severance pay from here on out.

The Supplementary Pension System is a regulation aimed at being more supportive of employees and workers. Perhaps a portion of the severance pay that employers do not actually set aside could be transferred to the Supplementary Pension System, paving the way for this. It is currently being considered to deposit funds for the worker under the name of severance pay. This must be provided to the employee by the employer. In Turkey, except for companies that do their job correctly, no severance pay fund is set aside.

I do not expect a regulation regarding severance pay in the near future, but since the employer does not set aside the amount of severance pay they are actually required to, a certain share of this could be entered into the Supplementary Pension System, paving the way for premiums to be effectively deposited. This is very important for the worker. It will be a second-tier pension for employees.

MINIMUM WAGE EXPECTATION

Our year-end minimum wage expectation is currently based on the fact that Minister of Labor Vedat Işıkhan stated there would be a 50 percent increase for civil servants. A six-month inflation rate of between 40 and 45 percent is expected by the end of the year. I believe there will be an increase of at least 40 percent, and that the net minimum wage will start from 15 thousand liras.

TÜRK-İŞ has research on the hunger and poverty line. Previously, a 'What should the minimum wage be?' survey was conducted by the Minister of Labor. I think it would be beneficial to conduct such a survey during this period as well. I believe the minimum wage will exceed the psychological threshold of 15 thousand TL.”