TurkStat says minimum wage should be 2,792 lira
* Ministry of Industry and Technology
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The representatives of the government, employers and employees met for the third time today (December 22) to determine the pay rise to be made in the monthly minimum wage in Turkey in 2021.
Held online due to the novel coronavirus (COVID-19) outbreak, the third meeting of the Minimum Wage Determination Commission was hosted by the Confederation of Turkish Trade Unions (TÜRK-İŞ).
While the employers' side was chaired by Turkish Confederation of Employer Associations (TİSK) Secretary General Akansel Koç, the workers' side was headed by TÜRK-İŞ Secretary General for Education Nazmi Irgat.
CLICK - Minimum wage negotiations in Turkey: A brief overview
During the 3-hour closed-door meeting, the TÜRK-İŞ expressed its opinions and demands and Özgül Yardımcı, a minimum wage earner, talked about the problems of minimum wage earning workers in Turkey.
The Turkish Statistical Institute (TurkStat), the state agency commissioned with producing official statistics on the country, also announced the minimum subsistence level of a single worker, as it calculated it.
According to the calculations of the TurkStat, a non-married worker doing hard labor needs a minimum of 2,792.10 Turkish Lira (~366 USD) to make a living in a month. While the minimum subsistence level of a worker doing a medium job has been calculated by the Institute as 2,507.70 TRY, it is reportedly 2,339.10 TRY for a worker doing a light job.
The fourth and last meeting of the commission will be hosted by the Ministry of Family, Labor and Social Services next week.
Confederation: Numbers don't reflect the truth
TÜRK-İŞ, which is the largest labor confederation of Turkey and represents the workers in the commission, has released a written statement for the press after the third meeting of the commission.
The statement of the confederation has criticized the figures shared by the TurkStat, underlining that they do not reflect the truth.
Stressing that the minimum subsistence level announced by the Institute is that of a worker who is not married, the confederation has said, "Both the government and employers already know that one cannot make ends meet with the current minimum monthly wage of 2,324 lira (~303 USD)."
Reiterating that "what they demand is a minimum wage which is compatible with human dignity," the TÜRK-İŞ has underlined that the figures announced by the TurkStat are "below the expectations of employees."
Without expressing an exact number as to the pay rise to be made in the minimum wage, the confederation has announced that it is expecting the offers of the government and employers. "We will reevaluate the situation based on the offer that will be made," it has added.
TurkStat's offer in 2019
Last year, the TurkStat calculated the food expenses of a worker doing hard labor as 2,331 TRY. After the meetings of the commission came to an end, the new minimum wage was set as 2,324 TRY.
Current minimum wage: 2,324 TRY
The current net minimum wage in Turkey is 2,324.71 Turkish Lira (TRY), which is approximately 303 US dollars or 240 Euro.
The gross minimum wage, on the other hand, is 2,943 TRY, which is some 600 liras higher than the net wage earned by workers in a month.
When this gap is examined in detail, it is seen that the following deductions made from the gross minimum wage lead to this difference:
412.02 TRY (14 percent) is deducted for social security premium; 29.43 TRY (1 percent) for the unemployment insurance fund; 375 TRY (15 percent) for the income tax; and 22.34 TRY (7.59 percent) for the stamp duty.
In other words, taken together with the minimum living allowance, a total of 618.29 TRY is cut from the minimum wage of a worker in a month.
Following the minimum wage talks last year, the minimum wage was increased by 15.03 percent, which was 3 points higher than the official inflation rate announced by the Turkish Statistical Institute (TurkStat).
Accordingly, with this pay rise, the minimum wage was increased from 2,020.90 TRY to 2,234.70 TRY for an unmarried worker.
As for the net minimum wages in Turkey in the previous years, it was 1,603 TRY in 2018, 1,404 TRY in 2017 and 1,300 TRY in 2016. While the net minimum wage was 949 TRY as of January 2015, it was increased to 1,000 TRY as of July 2015. While the net minimum wage was 773 TRY and 803 TRY as of January and July 2013 respectively, it was then increased to 846 TRY as of January 2014 and to 891 TRY as of July 2014.
How is the new wage determined?
The pay rise to be made in the montly minimum wage next year is decided by the Minimum Wage Determination Commission headed by Turkey's Minister of Family, Labor and Social Services.
The commission consists of 15 members: Five members are appointed to represent the government, five people by the Turkish Confederation of Employer Associations (TİSK) and five people by the TÜRK-İŞ, the largest labor confederation of the country, to represent the workers.
While the majority of votes of these 15 members is enough in determining the minimum wage, the first meeting is held at the Ministry, the second and third meetings are hosted by the representatives of employers and workers respectively and the fourth and last meeting is again held at the Ministry.
In the event of a tie in the final vote, the vote of the commission chair determines the new minimum wage. (HA/SD)