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Will the pension gap for 2024-2025 be closed? Formulas on the table

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The attention of retirement candidates has turned to the adjustment to be made regarding the pension gap for 2024-2025. It is noted that the economic management is accelerating its efforts while focusing on alternative solutions. The finalization of the adjustment is expected within the month of October. Here are the formulas on the table for eliminating the gap in retirement allowances. The adjustment regarding the pension gap for 2024-2025 has become the focus for retirement candidates. It is calculated that those who retire in 2024 will receive approximately 34% more pension than those who retire in 2025. Due to the difference in pension allowances, it is stated that making retirement applications for private sector workers until December 31, 2024, and for public sector workers until January 14, 2025, is more advantageous compared to the year 2025. Discussions have started between ministries regarding the difference in pension allowances. Minister of Labor and Social Security Vedat Işıkhan, in his statement after the cabinet meeting, said, “Our teams are working. We are working with the Ministry of Treasury and Finance.” It is expected that the work will be finalized within the month of October and then presented to the Turkish Grand National Assembly. According to a report in Sabah Newspaper, alternative studies are being conducted for the work. Among these formulas, there are changes in premiums and the number of days, a flat raise, and an adjustment in the update coefficient. The highlighted formula is said to be related to the update coefficient, and if an adjustment is made in this regard, the 2024 update coefficient will be changed from 1.4255 to 1.8616. It is stated that the cost of the adjustment on the budget is being worked on. Salary gaps are calculated through the update coefficient method. The update coefficient is determined by adding the sum of 30% of the growth rate announced by TURKSTAT for the month of December of each year to the total of the consumer inflation and rounding the result to the nearest whole number. In years with high inflation, significant differences in salary gaps emerge. While the 2024 update coefficient is calculated as 1.8616, it is expected to be 1.4255 in 2025.

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