President Erdoğan holds 'election economy' meeting with Mehmet Şimşek: Minimum wage instruction

As the AKP accelerates preparations for an early election reportedly planned for 2027, it has been claimed that a meeting was held between Erdoğan and Şimşek regarding 'election economy' measures. It is alleged that, in line with Erdoğan's instructions, a plan is in place to provide a flat-rate increase of around 20 percent to the minimum wage at the end of the year, in addition to the inflation adjustment.

Since taking office after the May 2023 elections, Treasury and Finance Minister Mehmet Şimşek has initiated tight monetary policies to combat high inflation while suspending the 'welfare share' adjustments previously applied to the salaries of retirees and minimum wage earners. 

For years, retiree pensions have only been increased by the rate of inflation, while the minimum wage hike has continued to remain below the annual inflation rate. 

While it is claimed that the AKP is accelerating efforts for an early election planned for 2027 to allow AKP Chairman and President Recep Tayyip Erdoğan to run for office again, the claim that has stirred up economic circles came from journalist Hilal Köylü. 

ERDOĞAN'S 'ACCELERATE' INSTRUCTION TO ŞİMŞEK

Köylü stated that a flat-rate increase had been planned for June for a potential election next year, but that changing economic balances due to the war in Iran led to the postponement of these wage scenarios until the end of the year. 

It is noted that during a recent meeting between President Erdoğan and Minister Şimşek, the President gave instructions to accelerate the process for economic policies to be implemented before the election, and details of the regulation planned for minimum wage earners at the end of the year have emerged. 

The economic management plans to implement a 20 percent flat-rate increase in addition to the inflation-level hike for the minimum wage, aiming to prepare the AKP strongly for the election. Furthermore, there are plans to return to the 'welfare share' practice for retiree raises at the end of this year, in addition to the inflation adjustment, and to increase the overall raise rate.