Losses in minimum wage and pensions grow: Purchasing power has steadily eroded

The rise in inflation between January and April has outpaced salary increases. The Turkish Statistical Institute (TÜİK) reported April inflation at 4.18 percent. Thus, the inflation rate announced since the beginning of the year has reached 14.64 percent. According to a report in Sözcü, this rate has completely wiped out the 11 percent raise provided to civil servants and civil servant retirees at the beginning of the year, while also causing a significant decline in purchasing power for other salary groups.

The minimum wage, which was increased to 28 thousand 75 liras at the beginning of 2026, has eroded by 3 thousand 585 liras in four months according to the inflation rates announced by TÜİK, falling to a purchasing power equivalent to 24 thousand 490 liras in real terms. According to data from the independent research group ENAG, the loss in purchasing power during this period reached 5 thousand 87 liras, and the real value of the minimum wage dropped to 22 thousand 988 liras. Thus, the income of minimum wage earners has fallen below 25 thousand liras in a short time.

A similar picture has emerged for pensions. With the raises made in the first months of the year, a 12.19 percent increase was given to worker, tradesman, and farmer retirees, and an 18.6 percent raise was given to civil servant and civil servant retirees. Additionally, the lowest pension was increased from 16 thousand 881 liras to 20 thousand liras. However, the inflation that occurred in four months has taken back a large portion of these gains. According to TÜİK data, the purchasing power of the lowest pension has fallen to 17 thousand 446 liras with a loss of 2 thousand 554 liras, and to 16 thousand 899 liras according to ENAG. The losses in the lowest worker and civil servant retiree salaries reached 2 thousand 636 and 3 thousand 547 liras, respectively.

CIVIL SERVANTS AND RETIREES AWAIT INFLATION DIFFERENCE

Civil servants and civil servant retirees received a 11 percent collective bargaining raise at the beginning of the year. However, inflation reaching 14.64 percent as of the end of April has created an additional inflation difference entitlement of 3.28 percent for this group. July is awaited for the payment of this difference. On the other hand, the purchasing power of the lowest civil servant salary, which was 58 thousand 305 liras at the beginning of the year, has decreased by 7 thousand 446 liras over the four-month period, falling to 50 thousand 859 liras.

While the negative impact of rising inflation on salaries deepens the public's cost-of-living crisis, the continuous loss in purchasing power stands out as one of the main issues on the economic agenda.

News Source: 12punto