Millions of minimum wage workers are anxiously awaiting a possible temporary increase in July. Despite the government’s announcement, living conditions are becoming increasingly difficult.
As a result, the minimum wage remained below the hunger line only for the fourth month of this year. According to the Türk İş report, the hunger ceiling announced in April was 17,725 TL, while in May this figure increased to 18,969 TL.
Inflation also peaked in May, with annual inflation rising to 75.45% in May, according to TUIK data.
With declining purchasing power and a worsening inflationary environment, economic inequality will only deepen unless the current minimum wage is temporarily raised.
So what is the current status regarding a temporary minimum wage increase? What scenarios are being considered and what are the possibilities?
Equalization formula for civil servant and retired employee increases
In July, more than 5 million civil servants and over 16 million retirees will receive salary and pension increases in line with the six-month inflation gap.
The net increase will be confirmed in June’s Consumer Price Index (CPI) report. The five-month inflation gap so far has been announced as 22.72 percent.
A similar increase is also being discussed for 7.5 million minimum wage workers due to hunger, poverty and high inflation.
The expected average increase rate is expected to be around 20-25%.
CHP demands first minimum wage in 18 years from President Erdogan
AKP Chairman and President Recep Tayyip Erdogan, who has repeatedly called for a new constitution, has also recently sought support for the opposition.
In this regard, President Erdogan met with CHP leader Ozgür Özer at the AKP headquarters on May 2. The following day, President Erdogan visited the CHP headquarters, revisiting Özer for the first time in 18 years.
The successive meetings between the two leaders were called the beginning of a period of political softening and normalization.
Economic issues were also discussed at the meeting, with CHP leader Ozgür Özer saying he had tabled a proposal for a temporary increase in the minimum wage.
At the meeting, which concerns millions of minimum wage workers, President Erdogan may welcome Özgül Özer’s request to lay the groundwork for an agreement with the CHP, in which case measures could be taken to raise the minimum wage.
Minister Şimşek and İşihan’s attitude towards the minimum wage is clear
The government continues to implement austerity measures to curb inflation and sees rising wages as one of the main causes of inflation.
In this regard, Finance Minister Mehmet Şimşek, who aims to achieve both the end-of-year target and the single-digit inflation target, has clearly taken a negative stance towards wage increases.
Moreover, the central bank’s report said efforts toward the goal were being made assuming there would be no interim increase in the minimum wage.
Minister of Labor and Social Security Vedat Ishkhan has also repeatedly stated that there are no plans to raise the minimum wage.
Finally, an assessment conducted by the AK Party’s Kızılçahmaş camp was reported to have concluded that there would be no tentative increase in the minimum wage.
There is another possibility
Some are saying the mid-term minimum wage hike will come at the end of the year, not later.
According to the information provided, it was confirmed that there will be no provisional increase in the minimum wage in July.
However, it has been claimed there could be an agreement in September.
