Minimum wage hike indicated by current inflation levels calculated: 'An issue that concerns the entire society'

Sivas Cumhuriyet University Faculty of Economics and Administrative Sciences, Department of Labor Economics and Industrial Relations faculty member Assoc. Prof. Dr. Abulkadir Yüksel stated, “The 2024 inflation is currently at the 47 percent level.

We will drop to the 45 percent levels by the end of December. At this point, if a 45 percent raise is implemented, the 2025 minimum wage will be 24,650 TL."

Emphasizing that the minimum wage is determined through a social dialogue mechanism, faculty member Assoc. Prof. Dr. Abulkadir Yüksel said, “The 2024 inflation is currently at the 47 percent level. We will drop to the 45 percent levels by the end of December. At this point, if a 45 percent raise is implemented, the 2025 minimum wage will be 24,650 TL. According to the statements of recent commentators, it is said that an increase could also be made according to the 2025 inflation target, which I do not find very likely,” he said.

"AN ISSUE THAT CONCERNS THE ENTIRE SOCIETY"

Yüksel stated that the minimum wage is awaited with curiosity, adding, “The latest situation regarding the 2025 minimum wage hike is on the agenda of millions of workers. Following the current minimum wage falling below expectations due to inflation and rent hikes, the new minimum wage amount that will be valid in January is awaited with curiosity.

We can say that the minimum wage is the biggest policy tool the state uses to protect employees against capital. It is clearly stated in the 4th article of the Minimum Wage Regulation. The minimum wage is the minimum wage amount that an employee can use to cover their mandatory needs such as housing, clothing, food, health, culture, and transportation. The minimum wage is determined through a social dialogue mechanism.

It is determined by the 15-person Minimum Wage Determination Commission, which includes the tripartite structure we call the social dialogue mechanism, namely the government, employers, and worker representatives. The minimum wage is finalized within December. TÜİK data indicates that there are approximately 7 million minimum wage earners. Of course, we can say that this is not a situation that only concerns 7 million people, but an issue that concerns the entire society,” he said.

"WE CAN FORESEE THAT AN INCREASE OF AROUND 45 PERCENT WILL BE MADE"

Stating that "December is a very exciting month for both employers and workers," Yüksel noted the following:

“Employers wait with curiosity for the wage to be determined by the Minimum Wage Determination Commission to calculate their costs, and workers wait to learn the wage they will receive. Last year, the minimum wage was set at 17,002 TL. If a 25 percent raise is applied to the minimum wage this year, it will be calculated as 21,250 TL; if a 30 percent raise is applied, it will be 22,100 TL; and if a 35 percent raise is applied, it will be 22,950 TL.

However, when looking at the recent statements made by our President and Minister of Treasury and Finance Mehmet Şimşek, the phrase ‘we will not crush them under current inflation’ is used. The 2024 inflation is currently at the 47 percent level. We will drop to the 45 percent levels by the end of December. At this point, if a 45 percent raise is implemented, the 2025 minimum wage will be 24,650 TL. According to the statements of recent commentators, it is said that an increase could also be made according to the 2025 inflation target, which I do not find very likely.

If an increase is made according to the targeted inflation in 2025, it can be said that it will be around 20,600 TL. Before the minister's statement, my own interpretation was that I estimated an increase of around 30 percent would be made. However, with Minister Şimşek's statement during the TBMM budget negotiations, we can foresee that it will increase by 45 percent.”

News Source: İHA