Minimum wage calculations begin: Inflation data will be influential

The countdown for the 2025 minimum wage hike has begun. The Central Bank and the Medium-Term Program (MTP) have put 5 figures on the table before the final net figure is reached.

As employees and employers evaluate different building blocks, they will also take inflation into account to reach a common decision. The minimum wage will be calculated as net and gross, and its cost to the employer will also be considered. So, how much will the 2025 minimum wage be?

INFLATION WILL BE INFLUENTIAL

The November inflation rate to be announced by TURKSTAT is being taken into account for the minimum wage hike, just as it is for civil servant and retiree salary increases.

The new rate, which will reveal the 5th data point in the 6-month process, will be announced today, December 3, at 10:00 AM.

FIRST MEETING OF THE MINIMUM WAGE DETERMINATION COMMISSION ANNOUNCED

The first meeting of the Minimum Wage Determination Commission, where representatives from TİSK and TÜRK-İŞ will meet, will take place on December 10. The worker and employer sides, coming together under the leadership of the Ministry of Labor and Social Security, will bring their proposals to the table.

The gross and net figures are expected to emerge after 3 meetings. While determining the minimum wage hike, points such as the worker's cost of living and the employer's costs will be taken into consideration.

Another important point to be considered while determining the hike rate will be inflation.

With the last hike, the minimum wage was set at 20,002 TL gross and 17,002 TL net. The cost of this wage to the employer was 23,503 TL.

MINIMUM WAGE HIKE IS BEING CALCULATED

The figures on the table are being evaluated according to the expectations of the Central Bank and the Medium-Term Program (MTP). The year-end inflation expectation for 2024 was included in the MTP as 41.5 percent.

While the lowest percentage was included in this program, the figures were later revised upwards.

Despite the 41.5 percent estimate in the MTP, Central Bank Governor Fatih Karahan announced in the latest inflation report that their year-end expectation is 44 percent.

Accordingly, the estimated calculations are as follows:

HOW MUCH WILL THE NEW MINIMUM WAGE BE?

If it increases by 41.5 percent according to the MTP, it will be 24,058 TL net; if it increases by 44 percent according to the Central Bank, it will be 24,483 TL net.

The possibility of making an increase based on the average of this year's inflation and the inflation estimated for next year, instead of annual inflation, is also being considered.

While inflation is expected to be around 17 percent in the MTP for next year, the average of this figure with this year's figures reveals rates between 20-25 percent.

Accordingly, the calculations are as follows:

If it increases by 25 percent, 21,253 TL net

If it increases by 30 percent, 22,103 TL net

If it increases by 35 percent, 22,953 TL net