New scenario for minimum wage: The figure being discussed has emerged

As the buzz surrounding the minimum wage intensifies, a new figure has emerged for the minimum wage that will affect everyone from 7 to 70. Former Central Bank Chief Economist Prof. Dr. Ali Hakan Kara has explained when the negotiations will begin and what the rate might be.

As statements have begun to come from the government regarding the minimum wage, the behind-the-scenes talk has also increased. The opposition has joined the discussions and stated what the base rates for the minimum wage should be.

Former Central Bank Chief Economist Prof. Dr. Ali Hakan Kara has explained at what rate the negotiations will begin at the table where many possibilities are being considered.

THE CALENDAR WILL BE ANNOUNCED FIRST

All eyes are on the commission for the minimum wage, which closely concerns minimum wage earners, their families, and private sector employees.

It was stated that the calendar will be determined first, and then workers, employers, and unions will sit down for negotiations. It was reported that the 2025 minimum wage will be determined and deposited into accounts starting from February 1.

WHAT DID ERDOĞAN SAY ABOUT THE MINIMUM WAGE?

President Erdoğan had said regarding the minimum wage, "Look, last year we gave our minimum wage-earning brothers and sisters a 107.5 percent raise. Last year, inflation was 65 percent. This year, we gave a 49 percent raise.

''As of October, inflation is below 49 percent. In other words, we will complete the year with a figure around 44 percent according to our Central Bank's estimates. In short, we will not let our retirees, our civil servants, our minimum wage earners, or any segment of society be crushed by inflation."

IŞIKHAN: WE WILL ANNOUNCE THE PROCESS

Minister Işıkhan, after the last cabinet meeting, said, "We will carry out the process just like last year. We will come together with the parties in the first or second week of December; we are ready. We will announce the process once the minimum wage calendar is clear."

WHAT ARE THE SCENARIOS BEING DISCUSSED FOR THE MINIMUM WAGE?

If an increase is made at the rate of the Central Bank's 44 percent target for the 17,002 lira minimum wage, it will be 24,483 lira,

If a raise is made at the 21 percent rate, which is the CBRT's 2025 inflation target, it will be 20,572 lira,

If a 26 percent raise, which is the 2025 upper band, is realized, it will be 21,422 lira.

The minimum wage

will rise to 22,102 lira if a 30 percent raise is given,

to 22,502 lira if a 35 percent raise is given,

and to 23,802 lira if a 40 percent raise is given.

WILL IT EXCEED 24 THOUSAND?

The inflation target in the Medium-Term Program is 41.5 percent. If a raise is applied at this rate, the minimum wage will exceed 24,000 lira.

If a raise is made at the 17.5 percent rate, which is the 2025 inflation target in the MTP, the wage will reach levels of 19,977 lira.

The statement came from former Central Bank Chief Economist Prof. Dr. Ali Hakan Kara. Making a statement on social media, Kara drew attention to the minimum wage negotiations while reminding of the gap between it and the hunger threshold.

KARA'S MINIMUM WAGE ESTIMATE

In the comparison he made, Kara said, "I estimate that as of the end of the year, the minimum wage will remain 28 percent below the hunger threshold. This rate will be the base when determining next year's wage increase."