The anticipated minimum wage for 2025 is a matter of curiosity for all employees across Turkey. Prior to the new minimum wage increase which will be valid in January 2025, expectations for the minimum wage raise according to inflation have started to be researched. Minister of Labor and Social Security, Vedat Işıkhan, addressed the expectations regarding the minimum wage raise in his recent statement. So, how much is the expected minimum wage increase for 2025, what percentage will it be? When is the first meeting? The state of the 2025 minimum wage raise is on the agenda of millions of employed laborers. Following the current minimum wage falling below expectations due to inflation and rent increases, the new minimum wage amount that will be valid in January is eagerly anticipated. Economists and the private sector are currently diverged on the topic of minimum wage raise. So, how much will the minimum wage be in 2025, what percentage will it be? When is the first meeting? Minister of Labor and Social Security, Vedat Işıkhan, made new statements on the minimum wage issue in the past days. Minister Işıkhan stated the following; “The minimum wage is not a matter determined solely by us as the government. Hopefully, the Minimum Wage Determination Commission will start their work in the first week of December. We have to finalize and publish it in the Official Gazette by December 31 within a certain time frame. We will have the opportunity to share it with the public in December. The most important thing is the inflation rate. Inflation is tending to decrease. Economic growth and sector-based workforce needs will be determinant for the wage here. This commission will evaluate how the living standards of our citizens can be improved. While doing this, we aim for the wage level to be at the maximum point where the workers and employers partners can agree without disturbing the general stability of our economy. Hopefully, after discussing, we will determine a common minimum wage and implement it in January.” Economists are currently diverged on the minimum wage raise. Whether the minimum wage raise will be based on the end-of-year inflation rate or the target inflation rate has been a subject of debate for a while. Some economists argue that the minimum wage increase could be over 30 percent. It is also among the estimations that the wage raise in the private sector will remain around 20 percent. If a 41.5 percent raise is made as per the inflation target in the Medium-Term Program (MTP), it will exceed 24,000 Turkish Lira. If a raise is made at the rate of 17.5 percent, the expected 2025 inflation rate in the MTP, it will increase to 19,975 Turkish Lira. When the Central Bank’s end-of-year inflation expectation of 44 percent is applied, it will reach 24,483 Turkish Lira. If a raise of the upper limit of 21 percent is implemented, it will be 20,570 Turkish Lira. With a 30 percent raise, the new minimum wage will rise to 22,102 Turkish Lira. If a raise of 40 percent is implemented, the new minimum wage will reach 23,802. With the market expectations of a 45 percent raise, it will be 24,650 Turkish Lira. Minister of Labor and Social Security, Vedat Işıkhan, answered questions on the 2025 minimum wage raise. Minister Işıkhan stated that they will start the wage raise marathon in December and determine the minimum wage that will be valid in 2025. Accordingly; the first meeting on the 2025 minimum wage increase will be held in December.
Comments are closed