Expectations for a minimum wage hike in July are rising: Social Security expert shares insider information

Recent relentless price increases and inflation data have put a strain on low-income groups while also raising expectations for July. Social Security Expert İsa Karakaş made significant statements regarding the minimum wage and retiree holiday bonuses during a live broadcast where he evaluated current economic data.

As of the new year, the minimum wage was set at 28 thousand 75 TL. However, Karakaş pointed out that with the January inflation rate recently announced by TUIK, the minimum wage has effectively eroded in real terms. "When we look at January inflation, the purchasing power of the minimum wage has dropped significantly. Before workers even received their minimum wage, 1,358 TL of it had evaporated," he stated.

House rents, meanwhile, did not relinquish their record in price hikes. According to the announced data, the rent increase rate reached 33.98 percent. Karakaş emphasized that this rate is even higher than the minimum wage increase.

The picture is similar, especially in private sector salaries. It is observed that raises in the private sector, including large enterprises, have largely remained at the minimum wage level. Karakaş said, "This situation has seriously shaken not only minimum wage earners but all salaried employees."

NO LEGAL OBSTACLE TO AN INTERIM MINIMUM WAGE HIKE

With the inflation of recent months, the expectation in the public eye that an interim raise could be made in July has gained strength. Regarding this, İsa Karakaş stated, "Even though the January raise was just made, the negative reactions are known by the government. For this reason, an interim raise in July now seems inevitable." He pointed out that there is no legal obstacle to this raise in terms of legislation.

According to Karakaş, the fact that the issue of a 3 percent deduction from the minimum wage has come to the agenda within the scope of plans for a supplementary pension system makes it necessary to evaluate all developments together. "My expectation is that there will definitely be a development in July," he said.

RAISE FORMULA FOR HOLIDAY BONUSES

Expectations for an increase in holiday bonuses for retirees have also risen. Sharing information he received from Ankara's political circles, Karakaş said, "The 25 percent increase formula is currently gaining weight." Reminding that there are approximately 17 million retirees and beneficiaries, Karakaş said that it is not possible for the bonus amount to be very high, and therefore the figure could be at the highest level of 5 thousand TL. He stated that if the President intervenes, this figure could rise up to 6 thousand TL, and that similar amounts are expected to be paid for Eid al-Adha.

SGK DEBTS AND HOPE FOR RESTRUCTURING FOR TRADESPEOPLE

Innovations that serve as good news for citizens with debts have also come to the agenda. Karakaş announced that the 10 percent down payment condition previously required for debts to the Social Security Institution (SGK) has been eased. "With the new regulation, this condition has been removed and the amount to be paid in cash has been reduced to only one installment," he said. Stating that an installment opportunity of up to 36 months is offered for debts, Karakaş underlined that those experiencing credit record problems could find relief with this regulation.

Tradespeople and artisans, on the other hand, are in expectation of a new restructuring regarding tax debts. Emphasizing the demands coming from the provinces, Karakaş expressed that they expect steps to be taken in the near future that will alleviate the debt burden, especially for small tradespeople.

While developments in the economy and rising costs bring new decisions to the agenda for employees and retirees, the possible raises to be announced in July are being closely followed.