Faruk Erdem announces minimum wage estimate

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SHAFAQNA Türkiye – The news that millions of employees have been waiting for comes from President Recep Tayyip Erdogan. Answering journalists’ questions at the Turkish Grand National Assembly, President Erdogan said that there would be a temporary increase in the minimum wage in July.

. Accordingly, the minimum wage commission will meet again in June and determine a new minimum wage for the second half of the year. President Erdogan recently announced that they have increased the base salary of pensioners from 5,500 TL to 7,500 TL.

Then it was announced that pension bonuses were increased from 1100 TL to 2000 TL. The law on these two ordinances was also passed by the General Assembly of the Turkish Grand National Assembly. Accordingly, in April, the lowest salary for all pensioners, including EYT members, will be TL 7,500, and the vacation bonus, which will be issued until April 20, will be paid in the amount of TL 2,000.

Retirees will also receive a new inflation-related increase in wages in July. July will be a month of growth for both workers and retirees. The minimum wage will be redefined.

Under normal circumstances, the minimum wage is determined by the Minimum Wage Determination Commission, which meets annually in December and is applied throughout the year. However, the minimum wage, which was determined last January, was increased with an interim increase in the commission collected in June, and was increased to TL 5,500 net.

The growth rate was 30 percent. Looking at the annual increase, the minimum wage has increased by more than 90 percent. After last year’s interim increase, the calculation of the minimum wage was as follows:

MINIMUM WAGE TL 6471.00 SSI PREMIUM TL 905.94 UNEMPLOYMENT SIG. PREMIUM TL 4.71 TOTAL CALCULATION TL 970.65 NET MINIMUM WAGE TL 5.500.35

For the minimum wage to apply in 2023, a commission convened in December announced a new minimum wage of TL 10,008 gross and TL 8,500 net. Now, interim growth for 2023 has come to the fore. Taking into account the increase in January, the calculation of the minimum wage looked like this:

NET MINIMUM WAGE ACCOUNT (TL/MONTH) MINIMUM WAGE 10.008.00 SSI PREMIUM 1,401.12 UNEMPLOYMENT SIG. PREMIUM 00.08 TOTAL CALCULATIONS 1,501.20 NET MINIMUM WAGE 8,506.80

To introduce a new minimum wage from July, the Minimum Wage Determination Commission must meet in June. When determining the new size of the new minimum wage, inflation will be the biggest parameter of the commission. Pensioners and civil servants receive allowances in accordance with the 6-month inflation rate, which occurs twice a year. Inflation was also a measure of the interim increase in the minimum wage. 6-month inflation is expected to be the determining factor this year, which is expected to be announced on July 3rd.

Looking at the inflation figures for January and February, there is a reduction in rates. It is expected that thanks to the measures taken, inflation will continue to decline.

Accordingly, it can be calculated that 6-month inflation will be from 20 to 30 percent. However, the determining factor will be inflation in the next 4 months. If a thousand, similar to the 30 percent interim increase in the minimum wage made last year, is implemented, the total minimum wage will reach 13,010 Turkish liras. The net minimum wage will be up to 11,050 TL. If the increase is 20 percent, this time the gross minimum wage will increase to TL 12,010 and the net minimum wage will increase to TL 10,200.

MINIMUM PAYMENTS FOR THE LAST 5 YEARS HAVE BEEN DETERMINED AS:

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