Claims of minimum wage and pension hikes in Erdoğan-Şimşek meeting
It has been claimed that as part of the AKP's preparations for a possible early election planned for 2027, the government is preparing for significant hikes in the minimum wage and pensions.
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AKP Chairman and President Recep Tayyip Erdoğan and Minister of Treasury and Finance Mehmet Şimşek reportedly held an important meeting in recent days. It is alleged that during the meeting, despite the current tight monetary policies in the economy, new steps regarding salary increases for pensioners and minimum wage earners were discussed.
Minister Şimşek, who took office after the May 2023 elections, has implemented tightening policies against high inflation and has for some time limited salary increases to inflation adjustments. In particular, while pensioners have only received salary increases at the rate of inflation for the last few years, the minimum wage increase has continued to remain below inflation.
POSSIBILITY OF EARLY ELECTION AND PREPARATIONS FOR HIKES
However, according to information conveyed by sources within the party, some state that the option of an early election is on the table so that President Erdoğan can be a candidate again. In this context, the economic management has accelerated its work on the rate of the increase to be given to minimum wage earners at the end of the year. According to what is being discussed in economic circles, a formula of a 20 percent flat-rate increase in addition to the inflation rate for the minimum wage at the end of the year is coming to the fore. In this way, it is stated that the government aims to provide relief to minimum wage earners before the election and increase support.
WELFARE SHARE ON THE AGENDA FOR PENSIONERS
Furthermore, it is planned that the "welfare share" practice for pensioners could be brought back to the agenda at the end of the year and that total increase rates will be raised. It is claimed that implementing the hikes in the second half of the year is part of the election preparations.
IRAN WAR BRAKE ON FLAT-RATE HIKES
According to the report by Hilal Köylü, another detail conveyed from economic circles is that the flat-rate increase, which was previously planned to be made in June, has been postponed to the end of the year due to the developments in Iran and the changing conditions in the region. Thus, it is noted that it is planned to provide additional support to wage earners without harming the policies to combat inflation.