Statement on 'minimum wage' from expert

The Minimum Wage Determination Commission, which held its first meeting on December 11, will convene for its second meeting on Monday, December 18. The new minimum wage must be determined by December 31 at the latest.

NAMES WHO WILL ATTEND THE MEETING

The commission's second meeting will begin on Monday, December 18, hosted by the Ministry of Labor and Social Security. The five-person delegation representing the workers in the commission will be chaired by Türk-İş Deputy Chairman Ramazan Ağar, the five-person delegation representing the employers will be chaired by TİSK Secretary General Akansel Koç, and the five-person government delegation will be chaired by Director General of Labor Mehmet Baş.

At the meeting, representatives from the Ministry of Treasury and Finance, the Ministry of Trade, and the Turkish Statistical Institute (TÜİK) are expected to present economic data and reports, primarily on inflation, purchasing power, and employment.

Furthermore, the cost-of-living indices of the Turkish Statistical Institute are also expected to be on the table at the meeting. The current minimum wage is applied as a monthly gross of 13,414 lira and 50 kuruş for one worker, and 11,402 lira and 32 kuruş net after taxes and deductions.

"MINIMUM WAGE WILL NOT EXCEED 16,000"

Social Security Expert Ali Tezel explained the function of the Minimum Wage Determination Commission's meetings and the possible figures on the table to Sinem Nazlı Demir on Artı TV. Tezel emphasized that employers would be taken into account when determining the new figure:

“Now one person decides everything. The determination commission will not decide on the minimum wage. One person will decide. And he will announce it. According to the picture presented by the government, and according to the statements of Vice President Cevdet Yılmaz and Mehmet Şimşek, it seems they will take the employer into account. Let me tell you what will happen. The minimum wage will not fall below 15,000 and will not exceed 16,000.”

"THERE IS NO INCREASE YET FOR RETIREES"

Speaking about the increases to be made in retirement pensions, Tezel explained his predictions for the raises that could be applied to the current salary:

"Currently, the salaries of SSK and Bağkur retirees have eroded by 34 percent. December is not yet clear; it will be clear on January 4. That will also come in at around 3% as an estimate. In January, an inflation adjustment of 37 percent will be given to SSK and Bağkur retirees. But let's underline this: there is no increase for those whose retirement pension is 7,500. That remains the same because it has nothing to do with inflation. For the retirement pension given as 7,500 lira to increase, a new law regarding the base salary must be passed by the parliament. Therefore, it appears there will be an increase of up to 40 percent for SSK and Bağkur retirees, and around 50 percent for civil servant retirees."

"THERE IS NO POSSIBILITY OF A REGIONAL MINIMUM WAGE"

Touching upon the possibilities of a regional minimum wage, which has been on the agenda more frequently recently, Tezel said that such a development would not be implemented in Turkey yet:

“The probability of having a regional minimum wage in Turkey is close to zero. This issue was debated a lot 20 years ago. The minimum wage will be valid for the entire country. I don't even give a chance for a regional minimum wage to emerge.”

"IT DOES NOT MEAN THERE WILL NOT BE A SECOND INCREASE"

Tezel concluded his speech by mentioning the possibility of a second increase in the minimum wage in 2024, just as in 2023:

“The current regulation says 'one increase per year', but the same regulation existed in 2023. It also said 'one increase per year' there. However, as you know, the government made a second increase in July. It is written that it will be done once a year in 2024 due to the regulation, but this situation does not mean that there will not be a second increase in July 2024.”

POSSIBLE SCENARIOS FOR THE MINIMUM WAGE

The net and gross figures that will emerge according to the raise rates to be applied to the minimum wage are as follows:

- With a 35 percent raise, the minimum wage will be 15,392 lira

- With a 40 percent raise, it will be 15,962 lira

- With a 45 percent raise, it will be 16,532 lira

- With a 50 percent raise, it will be 17,103 lira

- With a 55 percent raise, it will be 17,673 lira