MÜSİAD President Mahmut Asmalı explains: Is 22,500 Lira the 2025 minimum wage figure employers want?

With only days left until the Minimum Wage Determination Commission meets, the first signal has come from the employer side. 

Independent Industrialists and Businessmen's Association (MÜSİAD) President Mahmut Asmalı made statements regarding the minimum wage and interest rate policies during a program broadcast on CNBC-e.

Stating that the increase in the minimum wage sets a baseline for all wage groups, Asmalı noted the following:

Our proposal is to transition to a minimum wage application by adding a welfare share on top of the expected inflation figure. 

A middle-ground formula can be agreed upon. A minimum wage can be found through a correlation between expected inflation and last year's inflation. Some social support can also be provided. In this way, the balance in between can be maintained."

'WE MUST CLOSE 2024 WITH A SYMBOLIC INTEREST RATE CUT'

Stating that high costs cause inflation to rise, Asmalı said, "Doing business with 50 percent interest for 7-8 months is extremely costly. This is felt significantly in the market. As businessmen, we want to see the days when interest rates start to be lowered as soon as possible. Fighting inflation with only monetary policy remains insufficient. This needs to be supported by structural reforms and tight fiscal policy; we are late on this. Talking about an inflation decline dependent solely on monetary policy has not been successful."

Asmalı stated, "We must close 2024 with an interest rate cut, even if it is symbolic. There needs to be an interest rate cut in December. I think this is important both politically and socially. It has a psychological and political impact."

HOW MUCH IS THE MINIMUM WAGE EMPLOYERS WANT?

While Asmalı used the phrase, "Our proposal is to transition to a minimum wage application by adding a welfare share on top of the expected inflation figure," the expected inflation forecast has also become a subject of curiosity. 

According to the final inflation report of the year announced by the CBRT, the 2025 forecast was 21 percent. 

When a welfare share of around 5 percent, between 3 and 5, is applied as in previous years, the increase in the minimum wage corresponds to a figure between 24 and 26 percent.

If it is 24 percent, the minimum wage: 21,082 TL

If it is 26 percent, the minimum wage corresponds to 21,422 TL.

Asmalı also used the phrase, "A minimum wage can be found through a correlation between expected inflation and last year's inflation. Some social support can also be provided. In this way, the balance in between can be maintained"; the average was also calculated. 

Accordingly; while the 2024 CBRT year-end inflation forecast was 44 percent, the 2025 inflation forecast is 21 percent.  

Thus, there is a possibility of a 32.5 percent raise for the minimum wage.

If there is a 32.5 percent raise, the minimum wage becomes: 22,527 TL.