SSK and Bağ-Kur retirees' raise rate is clear! Bad news for those whose salary is below that figure

Although AKP Chairman and President Recep Tayyip Erdoğan declared 2024 the 'Year of Retirees', millions of retirees have been condemned to a starvation wage.

Retirees struggling to make ends meet have turned their eyes and ears to the 2025 raise rate.

The raise rates for the new year, which directly concern millions of retirees, will be finalized after the December inflation rate is announced by the Turkish Statistical Institute (TÜİK) in January, and retirement pensions will increase by the 6-month inflation difference rate.

Looking at the 3-month inflation rates announced by TÜİK, monthly inflation was recorded at 3.23 percent in July, 2.47 percent in August, and 2.97 percent in September. The total 3-month inflation was recorded as 8.93 percent.

Chief Social Security Specialist İsa Karakaş, one of the columnists for the Türkiye newspaper, known for its proximity to the government, evaluated the potential retirement pensions within the framework of year-end inflation forecasts.

Stating that retirement pensions can be evaluated within the framework of the Medium-Term Program (OVP) and expectation surveys, Karakaş said, "We currently know for certain the 3-month inflation figures for July, August, and September. As of today, it is certain that our SSK and Bağ-Kur retirees will be given an 8.93 percent raise. When we consider the 8.93 percent inflation difference as of today, an SSK and Bağ-Kur retiree with a base salary of 11 thousand 500 liras will receive a raised salary of 12 thousand 527 liras."

“SSK AND BAĞ-KUR RETIREES WILL RECEIVE A 13.46 PERCENT RAISE”

Reminding that the OVP has been updated and the year-end inflation expectation is 41.5 percent, Karakaş continued as follows:

“When we calculate the 6-month inflation difference according to 41.5 percent inflation, a figure like 13.46 percent emerges. If the 41.5 percent inflation figure foreseen by the government in the OVP is realized, it will be a matter of SSK and Bağ-Kur retirees receiving a 13.46 percent raise.

According to this, when we make a calculation, if a 13.46 percent raise is given to a retiree with a base salary of 11 thousand liras, their salary remains below 12 thousand 500 liras. In summary, if the 41.5 percent inflation difference foreseen in the OVP is realized, a zero raise is in question for those whose base salary is below 11 thousand liras. In this case, these retirees of ours will continue to receive the current 12 thousand 500 liras."

IF INFLATION IS ABOVE 43 PERCENT, THE RAISE RATE IS 15 PERCENT

Sharing the evaluations of inflation expectation surveys, Karakaş stated that in this framework, year-end inflation will be higher than 41.5 percent, saying, “When we look at expectation surveys and the forecasts of international organizations, it is seen that year-end inflation will not be 41.5 percent. It is foreseen that this will be 43 percent and above. When a calculation is made according to this scenario, a raise of at least 15 percent is in question. In this case, if inflation is above 43 percent at the end of the year, a 15 percent raise will be in question for SSK and Bağ-Kur retirees. When we make a calculation according to this percentage, the salaries of retirees whose base salary is below 10 thousand 870 liras as of today will remain at 12 thousand 500 liras. In other words, even if there is a 15 percent raise, retirees with a base salary of 10 thousand 870 liras will face the risk of receiving a zero raise,” he said.

“IT IS A MATTER OF RETIREES BELOW 11 THOUSAND LIRAS RECEIVING A ZERO RAISE”

Reminding that the lowest retirement wage is 12 thousand 500 liras, Karakaş said, “It is foreseen that only that rate of raise will be applied, whatever the 6-month difference that emerges in the calculation to be made by the Social Security Institution. In this case, it is a matter of retirees below 11 thousand liras receiving a zero raise. However, since no raise was given to those with low base salaries in July 2023, nearly 4 million retirees emerged who did not receive a raise. In this case, if the base salary remains fixed at 12 thousand 500 liras, nearly 4 million retirees receiving a salary below 10 thousand 870 liras will face the risk of a zero raise. However, against this rigid stance of the 12 thousand 500 lira base salary, we expect President Erdoğan to step in and increase it to at least 15 thousand liras,” he evaluated.

“THE GOVERNMENT NEEDS TO MAKE A LEGAL REGULATION”

Noting that if inflation is 43 percent as expected, all retirees whose salary is below 12 thousand 500 liras will receive a 15 percent raise, Karakaş said, “There will be no social assistance or treasury aid for them. If the lowest retirement pension is increased from 12 thousand 500 liras to 15 thousand liras, the government needs to make a legal regulation at the latest in December. It is not possible to increase this without a legal regulation. Therefore, it will be a matter of the entire difference coming out of the treasury's coffers, not the SGK's,” he said.

News Source: İHA