The 'minimum wage' detail in base salary and pension hikes! SGK Expert Özgür Erdursun explains

TURKSTAT will announce the May inflation figures on June 3. With the determination of the May inflation difference, where a peak is expected, new calculations will be made for salary hikes. While everyone from retirees to minimum wage earners expects a raise in July, a noteworthy comment came from SGK Expert Özgür Erdursun.

Stating that there will be no interim raise for the minimum wage, Erdursun said, "The government's calculation is clear." He stated that the hike rate for civil servant retirees would be in the 20 percent band, and for SSK and Bağ-Kur retirees, it would be in the 25 percent band. He also noted that the formula of setting the lowest pension equal to the minimum wage is incorrect.

Participating in a Sözcü TV broadcast, Erdursun made the following statements:

"Now, a 20 percent increase will be made for civil servant pensions, and a 25-26 percent increase for SSK and Bağ-Kur. These rates will be determined based on the 6-month inflation difference to be announced on July 3. Since civil servants received a 15 percent increase in advance through collective bargaining, this rate will be deducted, and the second 6-month collective bargaining raise of 10 percent will be added to it. For this reason, civil servants and civil servant retirees will be given 5 points less than the increases made for SSK and Bağ-Kur."

"When the last 6-month inflation is announced on July 3, all television channels will say, 'Yes, inflation has been announced, workers, civil servants, and retirees will receive a raise at this rate.' However, the real process will begin that day. Between July 3 and July 20, we will learn exactly what the government will provide."

CRITICAL DATE BETWEEN JULY 3-20

"When inflation was announced in January 2024, everyone said, 'The pensions of SSK, Bağ-Kur, and Emekli Sandığı retirees will increase by this much.' However, the government changed this three times. So, it is not that easy. The period from July 3 to July 20 will be very critical for retirees. It will be talked about and debated a lot between these dates."

"Proportional increases are of no use. Even if government officials come out and say 30, 35, or 40 percent instead of 5 percent, it will be of no use after this point. Because pension salaries have lost so much value that it is necessary to first bring their value back to a certain figure and then add the inflation difference on top of it."

"In July 2023, a flat increase of 8077 TL was made for civil servants. The value of this figure today should be 12,500 TL. This 12,500 TL needs to be given to civil servants, civil servant retirees, and SSK and Bağ-Kur retirees, and the inflation difference should be added on top. In this case, if a 12,000 TL difference is given proportionally to 16 million people, since widow and orphan pensions are lower, this corresponds to an average of 10,000 TL. Giving a 10,000 TL difference to 16 million people amounts to 160 billion TL per month and 1.9 trillion TL annually."

"This may seem like a high figure to people. Now let's look at another issue: Are the state's revenues fixed? When we look at the state's revenues, the revenue, which was 1 trillion 62 billion 701 million TL in 2023, has become 2 trillion 233 billion 11 million TL in 2024."

"If the government does not provide these figures, as I shared on social media, if there is no increase in the minimum wage in July, if a 20-25 percent raise is given to retirees and the same rate to civil servants, and if the 25 percent limit on rents is lifted and pressure on tradesmen continues, the demand for early elections by the public will increase."

"If inflation does not fall in the coming months and begins to be felt more, the issue of early elections in Turkey will be voiced by everyone. Because tradesmen will not be able to do business and will not be able to pay salaries to those working for them. If the 25 percent fixed rate on rents changes and high raises are not given to civil servants and retirees, most people will not be able to pay their rent. This will drag the country into major difficulties."

"THERE WILL BE NO RAISE FOR THE MINIMUM WAGE"

"I do not think there will be an increase in the minimum wage. There will be a 20 percent increase for civil servant retirees and a 25 percent increase for SSK and Bağ-Kur retirees in pension salaries. The government is clear on this matter. The Minister of Treasury and Finance, the Minister of Labor, and the labor union as well..."

THE BASE SALARY DEADLOCK

"In Turkey, this issue cannot be overcome without eliminating the lowest pension and base salary problem, without making flat increases, and without updating pension salaries. Of course, they say they will ensure price stability. We want that too."

"The lowest pension entered our lives in 2019. This system should be abandoned. The statement that the lowest pension should be completed to the minimum wage is extremely wrong. The lowest pension should be whatever it deserves. The salaries of all retirees should be increased with a common solution."

"Pension salaries need to rise above the minimum wage. Currently, the lowest salary is 6500 TL. If a 12,000 TL flat increase is made to this and a 25 percent raise is added on top, it would rise to around 23,000 TL."

"If the pension calculation system had not been changed, retirees would already be receiving a minimum salary of 25,500-26,000 liras. The government changed the system by foreseeing these days."