Millions of retirees face 'zero raise' shock in July: You may not see an increase in your pensions

According to a report in the Cumhuriyet newspaper, keeping pension accrual rates low is affecting the pensions of retirees who entered the workforce, especially after 2008. During this period, even the base pensions of retirees with long years of service remain below 9 thousand liras.

According to data released by TÜİK, consumer inflation (CPI) for the first 5 months of 2024 was 15.09 percent. With the addition of the June data, the 6-month inflation rate is expected to reach approximately 17 percent. However, this increase will not effectively mean a raise for retirees with low base pensions.

A retiree with a base pension of 10 thousand liras will see their pension remain at the 11 thousand 700 lira level even if they receive a 17 percent raise in July. Since this amount remains below the currently applied lowest pension of 14 thousand 469 liras, this retiree will see no change in their pension even if they receive a raise. In other words, they will receive a "zero raise" in July.

IF THE LOWEST PENSION IS NOT INCREASED, GRIEVANCES WILL PERSIST

To avoid this situation, a retiree's base pension needs to be at least 12 thousand 367 liras. Otherwise, millions of retirees whose pensions remain below the lowest pension threshold will not see any increase in July.

So far, no comprehensive reform regarding pensions has been brought to the agenda. However, there is talk in political circles that, just like in January, the lowest pension could be increased by the 6-month inflation rate in July. For this possibility to materialize, a legal regulation must be passed by Parliament.

In January, the lowest SSK and Bağ-Kur pension was increased by 15.75 percent, raising the amount to 14 thousand 469 liras.