The assessments come as millions of retirees rush to July to ask for pay raises. Faced with high inflation and reduced purchasing power, retirees are also asking for increased welfare payments, but Social Security expert Isa Karakas explained the new formula for pension increases as “a one-off.” Karakas said pensions should not be lower than the minimum wage.
Details of minimum wage for retirement benefits
Isa Karakas pointed out that pensions should not be below the minimum wage, saying, “SGK determines the minimum wage based on the workers they employ. SGK tells employers, ‘You cannot pay insurance premiums below the minimum wage.’ Whether you are a grocery store or a merchant, insurance premium payments must be made at the minimum wage. So we need to ensure that SSI practices do not allow the minimum pension to be below the minimum wage,” he said.
Pension pay reduced to 60 percent of the minimum wage
Isa Karakas explained the balance between the minimum wage and pensions using an interesting example from the past few years. Karakas said, “When the AK Party was launched in 2003, the party gave salary increases and pension increases. In 2003, the salary of the lowest SSK retiree was almost 1.5 times the minimum wage. At this point, today pensions have fallen to 60 percent of the minimum wage. Only in June 2023 will pensions be paid that are equivalent to 80 percent of the minimum wage,” he said.
“If we don’t increase our ground pay, it will lead to a leadership election.”
Karakas made the following statement:
“It would cause great anger if the basic salary of retirees was not increased and more than four million retirees continued to receive a salary of TL 10,000. The hunger threshold has already reached 19,000 people. It is not clear what this limit will be in July. “In this case, I would not like to imagine pensions below half the hunger line.”
“First the expected increase, then the proportional increase.”
“The situation of retirees will not improve unless the increase is gradual. The progressive increase is a one-time thing. After the increase, we should go back to the current system and make the system function with proportional increases,” he said.
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