The government's salary hike plan has been revealed: How much will the raise be in the new year?

It is alleged that Central Bank Governor Fatih Karahan stated that the salary increases for employees and retirees at the beginning of 2025 will be in the range of 15-20%.

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The government's salary hike plan has been revealed: How much will the raise be in the new year?

It has emerged that the government is planning a maximum raise of 20 percent for employees and retirees at the beginning of the year.

According to an article by Erdal Sağlam from 10 Haber, Central Bank Governor Fatih Karahan, who attended a meeting organized by a foreign brokerage firm in London last month, answered questions from investors following his presentation.

Responding to a question specifically regarding the raise rates for the minimum wage and pension salaries, Karahan emphasized that the raises implemented at the beginning of 2024 were quite high.

For this reason, he stated that the year-end inflation adjustment expectations of the working segment would not be met.

It was reported that Fatih Karahan, in response to questions from foreign investors, said that they have based their own calculations on a 15-20 percent raise at the beginning of the year.

Sağlam continued his article as follows:

(Fatih Karahan) reminded that the inflation target they set for 2025 is 14 percent and the upper limit of the determined inflation corridor is 21 percent, saying, 'We are making our calculations accordingly; the new year raises will be made at a rate of 15 percent, at most 20 percent.' Therefore, it is clear that the 'policy of salary raises based on targeted inflation rather than past inflation,' which emerged under the 'incomes policy' heading within the scope of the new economic program, will be in effect. For some time now, discussions had already begun regarding what the raise rates for employees and retirees at the beginning of the year would be, and reports had emerged that, as required by the program, a 20 percent, or at most 25 percent, raise would be implemented. These remarks by Central Bank Governor Fatih Karahan to foreign investors show that this issue has been discussed and finalized within the economic management.

News Source: 12punto