Turkey raises minimum wage by 50 percent amid currency crisis, high prices

The government has raised the minimum monthly wage from 2,825 lira to 4,250 lira for the next year.

İstanbul

Turkey raises minimum wage by 50 percent amid currency crisis, high prices

Photo: AA

Click to read the article in Turkish

The monthly minimum wage in Turkey has risen from 2,825 lira to 4,250 lira, President and Justice and Development Party (AKP) Chair Recep Tayyip Erdoğan has announced (1 US dollar = 15.42 Turkish lira).

The 50-percent increase was the highest in the history of the republic, Erdoğan noted during a press conference. They intended to protect workers against price increases, he said.

With the rapid depreciation of the Turkish lira and rising inflation rates, trade unions have been expecting a higher increase. The Confederation of Progressive Trade Unions of Turkey (DİSK) has said that the minimum wage should be 5,200 lira at least.

The minimum wage was worth 380 dollars at the start of 2021 while the next year's minimum wage is worth 275 dollars according to today's exchange rate.

CLICK - Half of all workers in Turkey earn around minimum wage

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.

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