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Labour and Social Security Minister Süleyman Soylu has announced that a proposal for the law amendment regarding the state covering 40% of the costs of the net minimum wage rise to 400 euro has been submitted.
According to the information Soylu gave, the regulation would only be in effect for the year 2016.
Making a statement on the press conference in Ankara, Minister Soylu has noted that a commission meeting would be held today (December 30) in which they hoped the commission would come to a mutual agreement on the net minimum wage in the amount of 400 euro.
He has noted that the drafts regarding the matter had been submitted to the Grand National Assembly of Turkey (TBMM) as of yesterday (December 29) evening and Republican People’s Party (CHP) and Nationalist Movement Party (MHP) have promised to support the draft.
“Prime Minister has ordered to announce the amount of the minimum wage as 400 euro today (December 30). The law draft will be prepared to be effective as of January 1 starting from the first week of the new year.
Burden to the budget
Soylu has also noted that the burden emerging from the rise of the minimum wage would not be compensated by Social Security Institution (SGK) but by the Treasury directly.
“Of course the rise of minimum wage is a burden to the treasure, there will be a tax increase even if just a bit. According to the impact analysis it might have an effect between 0,5-0-8 on inflation. The burden emerging from the rise will not be compensated by SGK but by the Treasury directly.
“The regulation will have a positive effect on growth; it might have an effect of minimizing the employment between 0,5-0,9 but we will reduce this effect with measures we take. Our reforms to reduce this negative effect are ready. These are decisions taken in the financial discipline”. (YY/DG)
