Turkish Government Implements 30% Increase in Minimum Wage, Raising It to 22,104 Liras

Turkish President Recep Tayyip Erdoğan has announced a 30% increase in the minimum wage for the remainder of 2024, raising it to 22,104 Turkish liras. This adjustment moves the wage from approximately $578 to $627 at current exchange rates, an effort aimed at addressing inflationary pressures on households.

Photo: EuroNews

Speaking at a parliamentary group conference last Wednesday, Erdoğan stated, “We kept our promise not to let employees be crushed by inflation.”

Despite the increase, the decision has been met with widespread criticism. Many argue that it falls far short of addressing the severe economic challenges faced by citizens, including skyrocketing inflation and a rapidly devaluing currency. The persistent rise in the cost of living and the poverty line continues to outpace wage growth, leaving many households struggling to meet basic needs.

In November, official reports placed the cost of living at 26,712 liras, while the poverty line surged to 66,976 liras—both figures significantly exceeding the previous minimum wage of 17,000 liras. Türk-İş, the Confederation of Turkish Trade Unions, has called for a minimum wage of 29,583 liras to align better with the economic realities faced by workers.

Turkey’s minimum wage also lags significantly behind that of several European countries, such as Poland (€997) and Greece (€965). Economists attribute this disparity to multiple factors, including the economic advantages gained by these nations through European Union membership and Turkey’s notably low unionization rates, which weaken collective bargaining power.

The leader of the Republican People’s Party (CHP), Özgür Özel, criticized the government’s approach, stating, “The administration pledged to adjust wages in proportion to inflation, but instead, we are seeing no meaningful wage improvement, while inflation has surged by over 50%.”

Public discontent has led to protests across the country, with significant demonstrations in Ankara as citizens demand urgent policy changes to address the growing economic inequality. As inflationary pressures and wage stagnation persist, calls for reform continue to escalate.

Source: BBC and Reuters