3 options on the table for pension payments
The Minimum Wage Determination Commission is set to meet in December. While the minimum wage for 2025 is expected to be between 23,000 and 25,000 TL, three different options are on the table for the lowest pension payment. Changes to tax brackets are also on the agenda.
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Negotiations to determine the minimum wage for 2025 will begin with the Minimum Wage Determination Commission's meeting in the first week of December. Following discussions between unions, employer representatives, and the government, the final decision will be presented to President Recep Tayyip Erdoğan.
While expectations that the minimum wage will be between 23,000 TL and 25,000 TL are being discussed in AKP corridors, Erdoğan is not expected to make a surprise decision.
THREE ALTERNATIVES FOR PENSION PAYMENTS
For the lowest pension payment, which is currently 12,500 TL, the government has options of 14,000 TL, 15,000 TL, and 16,000 TL on its agenda. According to impact analyses, after evaluating financial conditions and budget balances, the lowest pension is projected to be set between 14,000 TL and 16,000 TL. While 14,000 TL is considered a low probability, expectations are concentrated on 16,000 TL.
TAX REGULATION ON THE WAY
Income tax brackets are updated every year with the revaluation rate. However, economic conditions lead to injustices by causing those earning incomes close to the minimum wage to enter higher tax brackets at an earlier stage.
Seeking to resolve this situation, the government is working on a legal regulation to prevent employees from entering the second tax bracket. At the center of the discussions is the reduction of the 15 percent income tax rate. The government is expected to announce its final decision on this matter in the coming days.