Danger in Turkey's income distribution: Salaries have converged toward the minimum wage

A new study conducted by Economist Prof. Dr. Aykut Kibritçioğlu from the Turkish-German University has revealed that salaries and wages in Turkey are rapidly converging toward the minimum wage level, and that this situation is causing serious problems in income distribution.

The research emphasizes that while the minimum wage has been raised in recent years, particularly under the influence of rising inflation, other salary and wage groups have not been able to keep pace with this increase.

This situation is causing real income loss and financial difficulties for a large segment of the population.

The statement noted the following:

"In Prof. Dr. Kibritçioğlu's research, the relationship between the salaries of different income groups—such as public employees, academics, manufacturing industry workers, and Social Security Institution (SGK) retirees—and the minimum wage as well as GDP per capita was examined. The results show that since the 2000s (and particularly since 2014), salaries have generally regressed toward the minimum wage level and, in some cases, have even fallen below it.

'CONCERNS 20 MILLION ACTIVE AND PASSIVE SGK INSUREES'

The research reveals that, in particular, the monthly pensions of retirees and the salaries of manufacturing and public sector employees remain below both the minimum wage and GDP per capita. This negative development covers approximately 20 million active and passive SGK insurees whose monthly incomes were considered in the study.

Prof. Kibritçioğlu argues that the current social security and minimum wage system should be reconsidered and reformed in favor of employees. In his study, he proposes the implementation of innovative policies such as a "multiple minimum wage system" to ensure a fairer distribution of income. This system envisions setting different minimum wages for different titles and required qualifications, and regularly updating these wages based on inflation and per capita economic growth rates.

For example, it is stated that a pilot salary scale to be established based on academic titles at public and foundation universities in Turkey could serve as an example for the applicability of this system across the economy.

'OF GREAT IMPORTANCE FOR BUILDING A SUSTAINABLE ECONOMIC STRUCTURE'

Furthermore, the research draws attention to the need to strengthen trade union rights. It is emphasized that unions must be empowered and existing obstacles removed so that employees can engage in fairer wage bargaining.

In conclusion, this study demonstrates the necessity of fundamental changes to improve income distribution and increase the economic welfare of a large segment of the population in Turkey. The steps to be taken to ensure that not only minimum wage earners but also other income groups can earn the income they deserve are of great importance for building a more sustainable economic structure across the country."