Minimum wage announced: Prof. Dr. Serap Durusoy: An increase above inflation should have been made

The minimum wage that will be valid for 2024 has been announced as 17 thousand 2 TL. Prof. Dr. Serap Durusoy evaluated the new minimum wage of 17 thousand 2 lira for 12punto.

Prof. Dr. Durusoy emphasized that when determining the minimum wage, an income increase of at least above the year-end inflation rate should have been made. Durusoy wrote the following:

"The minimum wage is the hottest topic of every December. There was almost chaos regarding what the minimum wage, which concerns 50 percent of employees and is eagerly awaited by thousands of laborers and employers, would be.

It is certainly not easy for the Ministry of Labor and Social Security and the Minimum Wage Determination Commission to make a decision that can meet the expectations of workers, employers, and the public.

The commission held its first meeting this year on December 11 and its second meeting on December 18. No raise rate was mentioned in the statements made after the meetings.

After the final meeting, the minimum wage that millions were waiting for was announced. Minister of Labor and Social Security Vedat Işıkhan announced that the net minimum wage for 2024 is 17 thousand 2 TL. However, Türk-İş President Ergün Atalay, who stated that they placed a dissenting opinion on the decision, noted that their own demand was 18 thousand TL. However, the final word was, of course, to be said by the President.

To prevent the decrease in the purchasing power of minimum wage earners caused by inflation, an income increase of at least above the year-end inflation rate is required. Moreover, while controlling purchasing power is considered important in preventing inflation, the loss of welfare it causes is an undeniable reality. Indeed, according to the December results of the United Public-Labor Confederation's hunger-poverty line research, the fact that the hunger threshold is approaching 16 thousand 483 lira and the poverty threshold is approaching the 47 thousand lira limit reveals the gravity of the situation.

In his statement, Mr. Işıkhan said that the minimum wage increased by 49 percent compared to the previous period and by 100 percent compared to the previous year. From this statement, one could actually infer 'what more do you want'.

It is certain that the figure will not satisfy the labor segment. However, the fact that pensions remain below the minimum wage and the gap is widening further carries the problem to another level.

In addition, any change in inflation forecasts must definitely be compensated for when determining the minimum wage. This naturally shows that there should be new increases within the year. However, Mr. Işıkhan, in a previous statement, emphasized that the minimum wage was well above inflation, stating that a 114 percent raise was given to the minimum wage in 2023, and that the cost of tax exemption for wages up to the minimum wage to the budget was 500 billion lira, and emphasized that 'work is being done for a single raise in 2024'.

In this context, it appears that the wind of inflation, which has turned into a storm, will continue to devastate the wage-earning segment until it falls to single digits, and wage earners will not be able to be protected against inflation."

News Source: 12punto