What will the raise rate be for the minimum wage and pensions?

The rate of the raise to be applied to the minimum wage and pensions concerns millions of citizens. The CPI forecast in the Central Bank's Survey of Market Participants has provided a clue for the pension raise. Accordingly, the year-end inflation expectation, which was 67.22 in September, reached 68.01 in this survey.

As the CBRT's inflation forecast changed, the rate of the raise to be applied to the new minimum wage and pensions became a matter of curiosity.

According to a report by Milliyet; Sworn-in Financial Advisor and Economist Muhammet Bayram stated, "I believe that a salary increase of nearly 50 percent will again be provided to SSK and Bağ-Kur retirees and civil servants." Regarding the minimum wage, Bayram assessed, "I think an increase of at least the inflation difference can be made for minimum wage earners."

Bayram's statements are as follows:

"The Central Bank announced the October Survey of Market Participants. Accordingly, year-end inflation has been revised upwards to the 68 percent level. For the period covering the second half of the year, inflation was 9.49 in July and 9.09 in August. In September, the rate of increase in inflation fell by almost half to the 4.75 level.

Along with this, the inflation difference for civil servants and retirees for the first 3 months was determined as 25.11 percent. Following the Central Bank survey, our year-end inflation expectation is around 75 percent. We believe we could close the year with inflation around 75 percent.

3-MONTH INFLATION DIFFERENCE EXPECTED

There is 3 more months of inflation data to come. October inflation data will be announced on the 3rd of next month. The first 3-month inflation announced after the second half of the year was 25.11 percent. This will increase with the incoming inflation data, but we will wait for two more months of data.

The year-end inflation difference will be around 38 percent, as announced by Minister Vedat Işıkhan. The reason the Minister said that a raise of around 50 percent would be given to civil servants and civil servant retirees is because the collective bargaining raise in June was at the 6 percent level. In January, the collective bargaining raise to be given is at the 15 percent level. There is a 9-point difference in between. Therefore, civil servants and civil servant retirees will be given a 9-point difference above inflation.

Although the raise to be made as of the end of the year is considered to be 38 percent for SSK and Bağ-Kur retirees, in recent periods, increases have always been made in the form of inflation difference + welfare share. I believe that a salary increase of nearly 50 percent will again be provided to SSK and Bağ-Kur retirees and civil servants.

HOW MUCH WILL THE MINIMUM WAGE RAISE BE?

An increase of at least the inflation difference will also be made for minimum wage earners. A 35 percent raise was made in the interim period. With the interim raise, a higher raise was given compared to SSK and Bağ-Kur retirees. Therefore, I think an increase of at least the inflation difference can be made for minimum wage earners."

News Source: 12punto