14 percent calculation for July raise for civil servants and civil servant retirees: Expectation for a flat increase is weak

Eyes have turned to June inflation for the salary increase that civil servants and civil servant retirees will receive in July. SGK Chief Specialist İsa Karakaş stated in his calculation based on current expectations that the raise rate could form at the level of approximately 14 percent.

Karakaş, taking into account the data in the Central Bank of the Republic of Turkey's Survey of Market Participants, stated that if June inflation comes in at 1.52 percent, the six-month cumulative inflation will reach 18.37 percent. He noted that in different scenarios, this rate could form in the range of 17.5 percent to 18.5 percent.

According to this picture, as a result of the combination of the inflation difference that civil servants and civil servant retirees will receive and the collective bargaining agreement raise, the July salary increase is expected to take shape at the level of approximately 14 percent. The final rate will be clarified with the June inflation to be announced by the Turkish Statistical Institute (TÜİK).

Karakaş argued that the current collective bargaining system does not fully protect civil servants and civil servant retirees, especially during periods of high inflation. Pointing out that salary increases reflect inflation with a delay, Karakaş said that for this reason, the system continues to be debated.

Making an assessment regarding expectations for a flat increase, Karakaş conveyed that there is no strong preparation in this direction in Ankara's political circles. According to Karakaş, only the salary update to be made within the scope of the collective bargaining agreement and inflation difference stands out on the government front at this stage.

Whatever is in the collective bargaining agreement, that is it. For now, there is no expectation of a new flat increase or an additional raise for civil servant retirees. The only issue on the agenda is the salary update to be made within the framework of the collective bargaining agreement and inflation difference.

Karakaş stated that the 8 thousand 77 lira flat increase implemented in 2023 has risen to over 22 thousand lira today with cumulative calculations. He stated that if this amount were also reflected to civil servant retirees, there would be a serious increase in salaries.

According to Karakaş's calculation, if both the 14 percent July raise and the flat increase were added to the lowest civil servant retiree pension, which is at the level of approximately 27 thousand 877 lira, the salary could have risen to approximately 57 thousand lira. However, it is stated that such an arrangement is not on the agenda in political circles.

News Source: 12punto