Critical warning from Social Security expert regarding July salary increases: 'The increase will not be a raise'

Important assessments have come from Social Security Expert Özgür Erdursun for millions of civil servants and retirees who are eagerly awaiting the salary increases to be implemented in July 2026.

Stating that losses due to inflation are the primary agenda, Erdursun expressed that the salary increase will not improve purchasing power but will only partially compensate for the value lost in the past.

Touching upon the effects of ongoing geopolitical tensions in the region, particularly on energy prices, Erdursun said, "There is a war right next to us. With the United States and Israel attacking Iran, energy costs are expected to rise further. In all likelihood, there will be another hike in fuel prices. As the cost of energy increases, this rise is not limited to pump prices; it reflects on the goods and services we buy and the overall cost of living. This pushes inflation upward. On the other hand, the value of the money in our pockets continues to fall."

The rise in energy costs is not limited to fuel prices; it creates inflationary pressure across many areas, from production to transportation, and this situation causes general inflation to remain consistently high. Erdursun criticized the government's policy choices, arguing that those on fixed incomes are not being supported during this process.

Erdursun stated, "Government officials say they are fighting inflation, but there has been no increase in holiday bonuses. While prices are rising and the costs of goods and services are constantly increasing, the amount received by those living on fixed incomes remains unchanged. In Turkey, we have seen market price tags change almost weekly or even daily in recent years."

'PURCHASING POWER HAS ERODED SERIOUSLY'

Pointing to the inflation figures of the recent past, Erdursun noted that the inflation rate, which approached nearly 8 percent in the first two months of the year, rendered the planned raises ineffective in a short time. Erdursun assessed, "This rate shows that a significant portion of the salary increases has already eroded. The minimum wage was increased at the beginning of the year, but there has been a serious loss in purchasing power within two months. A similar situation applies to retirees, civil servants, and others on fixed incomes. Although the money entering the pocket appears the same in nominal terms, the amount of goods and services that can be purchased with that money is decreasing."

Emphasizing that the appearance of rising incomes does not provide an improvement in purchasing power, Erdursun said, "Everyone living on a fixed income is facing similar difficulties."

Pointing out that the increases to be made in July will be calculated based on the inflation difference, Erdursun stated, "The July 2026 salary increase will essentially be determined by reflecting the inflation difference. This situation will not be a real raise for employees and retirees, but merely a way to cover a portion of the loss that has occurred against inflation in the recent period."