Report: Minimum wage meeting delayed due to lira's rapid slide

The minimum wage commission was expected to convene at the start of the week.

İstanbul

Report: Minimum wage meeting delayed due to lira's rapid slide

Türk-İş trade unions confederation Chair Ergun Atalay (Photo: AA/File)

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After the Turkish lira's massive loss of value yesterday (December 13), meetings to determine the country's minimum wage for next year have been reportedly delayed.

The Ministry of Labor and Social Security hasn't yet sent an invitation to the parties for a meeting that was supposed to be held at the start of this week, according to a report by daily Cumhuriyet.

President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan had a meeting with Central Bank Governor Şahap Kavcıoğlu and head of public banks yesterday, due to which the meeting of the Minimum Wage Determination Commission was delayed, said the report.

How is the minimum wage determined?

According to the relevant laws, the commission comprises 15 people, five representatives each from employers, employees and the government.

The commission holds four meetings with the participation of at least 10 members and takes decisions by a majority vote. In case of equality of votes, the commission head's vote determines the outcome.

Currenliray, the gross minimum monthly wage is 3,577 lira. A single minimum wage worker with no children receives a net amount of 2,825 lira (1 US dollar = 14.27 Turkish lira).

Minimum wage by years:

1. 2019: 2020 lira
2. 2018: 1603 lira
3. 2017: 1404 lira
4. 2016: 1300 lira
5. 2015: January 1-949lira, July 1: 1000 lira
6. 2014: January 1-846 lira, July 1: 891 lira
7. 2013: January 1-773 lira, July 1: 803 lira

Minimum wage in Turkey

The economic crisis that has been continuing since 2018, the loss of income and jobs caused by the Covid-19 pandemic and the excessive price increases over the past few months have reduced the purchasing power of the working class, making high living costs one of the most important problems of the country.

Turkey is one of the countries with the highest number of weekly working hours among OECD countries. However, workers cannot get their share of economic growth and increased production.

The minimum wage is currently below the starvation and poverty lines.

Due to the rapid depreciation of the lira, the minimum wage is at its lowest level of the last 15 years in dollar terms.

Also, the minimum wage has nearly become the average wage in Turkey over the last few years. Among the European countries, Turkey has the highest share of workers with wages around the minimum wage.

(HA/VK)

Origin

BIA News Desk