Famous economist reveals how much the AKP will set the minimum wage: Listed the formula, gave a figure!

With only days left until the 2025 minimum wage is determined, the corridors of power are buzzing over the figure that concerns millions of citizens. 

Economist Murat Sağman shared some noteworthy insider information regarding the minimum wage hike, relaying his observations from Ankara.

Here is that statement:

HOW MUCH WILL THE 2025 MINIMUM WAGE BE?

"I expect a raise of around 30 - 35 percent. This would mean the minimum wage, which is currently 17,002 lira, would come to approximately 23,000 lira. I think it will happen like this. This is a very important issue.

According to my impressions from Ankara, Mr. Cevdet Akçay spoke about a minimum wage based on future inflation expectations. He even said this: 'The impact of the minimum wage on inflation may not be as significant as it used to be,' he said.

Now the problem is this; on the Central Bank front, the more the minimum wage increases, the more it will impact inflation. Now, you are going to set a minimum wage increase based on expectations. However, those expectations are not being met. That is why another formula is being considered. It might not be that irrational. We will take both past inflation and future inflation expectations. The average of these will be reflected as a raise."

THE 45 PERCENT DETAIL FOR 2024 INFLATION

"Now, if we do a calculation like this, we will finish this year at around 45 percent. Inflation of around 45 will come this year. For next year, I am taking the Central Bank's upper band. I am taking 26, not 21, from the graph I showed.

I find 70 by adding 45 + 26. I divide this by 2 to get 35. It could be that it comes out to 30, and the President adds 5 on top to finish at 35, I think. We would be closing the minimum wage, which is 17,002 lira, at 23,000 lira.

What Mr. Özgür Özel said is a very distant request. He said it should be 30,000 lira. 30,000 means a 76 percent raise. I don't think such a thing will happen.

When we look at real life, the minimum wage has of course remained low. It has remained at the hunger threshold, but unfortunately, the goal is to lower inflation.

When we increase the minimum wage, because price hikes follow and costs rise, companies reflect this directly in their prices. 

So there is a spiral here. We need to break this spiral."