Minimum wage and pension hikes have evaporated: Here is the 5-month bill of inflation

Economic indicators in Turkey reveal that salaries have continued to lose value rapidly since the beginning of the year. According to data released by TUIK, consumer prices increased by 16.61 percent in the January-May period. The independent research platform ENAG, meanwhile, calculated inflation at 23.57 percent for the same period. In the face of rising inflation, the majority of the gains obtained from the new year salary hikes have eroded.

According to a report by Erdoğan Süzer from Sözcü, the purchasing power of the minimum wage, which rose to 28,075 liras with the update at the beginning of the year, fell to 24,076 liras within five months based on TUIK calculations. When ENAG data is taken into account, the purchasing power dropped to as low as 22,720 liras. Of the initial 5,971 lira raise, only 1,972 liras remained in the pockets of employees according to TUIK's inflation figures, and only 616 liras according to ENAG.

Retirees were also negatively affected by the loss of value in their pensions. The purchasing power of the lowest pension, which was raised to 20,000 liras in the new year, fell to 17,151 liras in light of TUIK data, and to 16,185 liras according to ENAG's calculations. During this period, retirees faced losses of 2,849 and 3,815 liras, respectively.

Civil servant salaries also eroded in a similar manner against inflation. For example, a teacher's salary, which was 65,358 liras at the beginning of the year, lost 9,310 liras in value over five months, falling to 56,048 liras. The salary of engineers decreased by 12,068 liras in the same period, dropping from 84,721 liras to 72,653 liras. Furthermore, although the lowest civil servant salary rose from 48,487 liras to 58,305 liras, the real value of this salary fell to 50,000 liras at the end of five months.

CALL FOR MID-YEAR RAISE

Economists and unions point out that a mid-year raise for the minimum wage and public employees is inevitable for the remainder of the year. While a 7 percent collective bargaining raise is on the agenda for civil servants and civil servant retirees in July, the inflation difference that has formed in the five-month period has reached 5.05 percent. Thus, the finalized raise rate has been calculated at 12.4 percent. It is projected that worker, tradesman, and farmer retirees could receive a total raise of 16.61 percent over five months.

If June inflation occurs around 1.5 percent as expected, it appears likely that a raise of 14.1 percent will be implemented for civil servants and civil servant retirees, and 18.36 percent for worker and Bağ-Kur retirees in July.

News Source: 12punto