An 'average' formula for the minimum wage from AKP corridors! How much will the minimum wage be?

The final stretch for the minimum wage is approaching. First, the commission's schedule will be determined, and the 2025 minimum wage will be clarified before the new year arrives.

Ahead of the minimum wage negotiations starting in December, which closely concern both minimum wage earners and other employees, evaluations continue within the AKP and the government regarding how much of an increase can be implemented.

It was stated that the minimum wage increase was also discussed at the most recent Economic Coordination Board meeting.

AN AVERAGE OF BOTH RATES WILL BE TAKEN

For some time, there have been discussions regarding whether the minimum wage should be increased based on the inflation rate that will be determined at the end of the year or the inflation rate targeted for 2025. The expectation in AKP corridors is for an increase based on the average of both rates.

The Central Bank's year-end inflation forecast is 44 percent. The 2025 target was announced by the Central Bank as 21 percent.

HOW MUCH WILL THE INCREASE RATE BE?

According to the report in Türkiye Gazetesi, AKP sources state that if these rates are taken into account, there could be a 32-35 percent raise for the minimum wage.

If an increase at these rates occurs, the minimum wage will rise from 17 thousand 2 liras to 22 thousand 500 or 23 thousand liras.

The prevailing view within the AKP is to increase the minimum wage by the inflation rate that will emerge at the end of 2024.

If the Central Bank's forecast holds and a 44 percent raise is implemented at the end of the year, the minimum wage will be 24 thousand 500 liras.

THEY LINED UP FOR RETIREMENT! THE DIFFERENCE IS 30 PERCENT

On the other hand, there has been an expectation for some time for a regulation to address the approximately 30 percent salary difference that will occur between those retiring in 2024 and those retiring in 2025 due to the pension accrual coefficient.

It is stated that the number of people in this situation is around 300 thousand. It was noted that 190 thousand of these individuals work in the public sector, while the others are in the private sector.

It is stated that a large portion of the 300 thousand employees have applied for retirement due to the difference that will occur in pension payments, and that applications will intensify further in December.

HOW MUCH WILL THE LOWEST PENSION BE?

Another agenda item in the AKP is the lowest pension payments. The lowest pension, which is currently 12 thousand 500 liras, will be evaluated after the annual inflation rate is announced on January 3.

AKP officials stated that there will be an increase in the lowest pension, but there is no clarity yet regarding the figure. A legislative proposal will be submitted to the Grand National Assembly of Turkey (TBMM) for the increase to be made in the lowest pension after the start of the year. If the proposal does not become law in time for the January payments, the difference will be deposited into the retirees' accounts later.

Currently, the pensions of more than 3 million retirees, whose base salary is between 7 thousand 500 and 10 thousand 700 liras, are being topped up to 12 thousand 500 liras.

Even if a raise at the rate of the last six months' inflation is applied to retirees in this situation, their pensions will remain at 12 thousand 500 liras. For this reason, a new regulation will be made regarding increasing the lowest pension. It is stated in AKP corridors that the lowest pension could be increased to 13 thousand 500 liras after the start of the year.