Little time left for the July pension hike: New figure for the lowest salary

As July approaches, discussions continue in political circles regarding how much of a raise pensioners will receive. Among the topics being discussed, there are 3 formulas for the raise.

According to a report by Faruk Erdem from Yeni Asır, the AKP government, which suffered a blow from pensioners in the local elections, is working on 3 formulas for pensioners.

The countdown continues for the second raise of the year that millions of pensioners and civil servants will receive. With the April inflation announced at 68.80 percent, the 4-month rate has also emerged. The 4-month inflation rate between December and May was calculated at 18.72 percent.

May and June inflation figures will be added to this rate, and the second raise of the year that pensioners and public employees will receive in July will take shape. At this point, three separate formulas—inflation adjustment, welfare share, and base salary increase—will be in effect.

6-MONTH RAISE RATES WILL BE DETERMINED

For SSK and Bağ-Kur pensioners, who receive an increase based on the 6-month inflation rate that occurs every year in January and July, the 4-month rate of 18.72 percent has been finalized. Accordingly, the 4-month inflation increase for SSK and Bağ-Kur pensioners is currently 18.72 percent. May and June inflation figures will be added to this rate.

Thus, the 6-month rate will emerge, and the 6-month raises for pensioners will be finalized.

Estimates here point toward a 6-month inflation rate of around 25-30 percent by the end of the year. When this happens, the inflation adjustment for SSK and Bağ-Kur pensioners will be in the 25-30 percent band. Together with the welfare share that is being considered for addition, the raise rate is expected to be in the 35-40 percent band.

PUBLIC EMPLOYEE PENSION SALARY

Another group that receives a raise twice a year is public employees and Emekli Sandığı (Retirement Fund) pensioners. Civil servants and retired civil servants receive raises at the rates signed in the collective bargaining agreement every year in January and July. The 6-month inflation difference that occurs above this is also added to the raise rate.

Civil servants and retired civil servants, who received a 49.25 percent raise in January with the 15 percent collective bargaining increase and the resulting inflation difference, will receive a 10 percent collective bargaining raise in July. The inflation that occurs above the 15 percent January raise will be paid as a difference.

Considering the 18.72 percent 4-month inflation, it has been finalized that a difference payment will be made for civil servants and retired civil servants. Assuming that May and June inflation figures are also added, this difference will increase even further. According to 6-month inflation estimates, it is expected that the salary raise for civil servants and retired civil servants will emerge in the 25-30 percent band, with an inflation difference of over 15 points.

Here, if a welfare share application like the one in January is implemented, equalization with the 35-40 percent raise for SSK and Bağ-Kur pensioners could also be on the table.

HOW WILL SOCIAL ASSISTANCE BE AFFECTED?

Social payments such as old-age pensions, disability pensions, and home care allowances also increase every year in January and July. The increase rate here is the same as the raise rates for civil servants and retired civil servants. The rate that will emerge after the 10 percent collective bargaining and inflation difference for retired civil servants will also be applied to social assistance.

If a welfare share is implemented, this additional rate will increase social assistance in the same way.

HERE ARE THE BASE SALARIES...

Another expectation for July is regarding base salaries. The lowest pension, which was increased from 7,500 TL to 10,000 TL in January, will be redetermined in July. The increase to be made to the base salary will also increase the flat-rate support provided to pensioners with lower monthly incomes. The increase here is expected to be equal to the 6-month inflation. Or, the year-end inflation rate could also be applied.

In both formulas, base salaries are expected to rise to the 14-15 thousand TL band.

According to the report, the July increases will be applied to the base (root) salaries.

After these increases, pension payments that remain below the determined base salary will be topped up to the base salary with flat-rate payments.

News Source: 12punto