Turkey’s Ministry of Labor and Social Security has announced a minimum wage hike effective starting in July. The new wage of 11,402 Turkish Liras per month was announced by Labor and Social Security Minister Vedat Işıkhan at a meeting on Tuesday morning (20 June).
Işıkhan made the following statement regarding the hike:
“The gross [pre-tax] minimum wage amount of 13,414 Liras will be valid for the second half of 2023. The net [post-tax] minimum wage amount has been set at 11,402…Compared to the second half of last year, we have increased the minimum wage by 107 percent.”
This latest minimum wage figure, equivalent to around $480 US Dollars, represents a significant increase from the 8500 TL figure that went into effect in January 2023. However, while the Turkish Lira stood around 18.75 to the US Dollar at the start of the year, its value had depreciated to around 23.5 against the USD today.
Statement from Presidents of TÜRK-İŞ and TİSK
Ergün Atalay, President of Confederation of Turkish Trade Unions (TÜRK-İŞ), made a statement following the minimum wage announcement. Deliberations between TÜRK-İŞ representatives and representatives from the Ministry of Labor and Social Security had been ongoing for 13 days:
“Last July a 30% increase was given halfway through the year. Today, we have made a 34% increase…Hopefully, inflation will be brought under control, there will be no more price hikes, and we will continue to maintain our purchasing power. Wage hikes do not matter unless inflation is brought under control. Our wish is for prices in the market to be brought under control as soon as possible.”
Özgür Burak Akkol, president of the Turkish Confederation of Employer Associations (TİSK), released the following statement about the wage hike:
“Throughout this process, we have worked for a balanced figure that takes into account the expectations of our colleagues and businesses in social dialogue.”
Reactions from Turkish political parties
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Following the new minimum wage announcement, the Turkish Workers Party (TİP) made a statement criticizing the hike as insufficient, saying:
“The new minimum wage hike is insufficient to provide for our vital needs, much less survive. The minimum wage should no longer be our country’s average wage. TÜİK (Turkish Statistical Institute) must announce the inflation of the poverty line. We say no to poverty, no minimum wage!”
The TİP statement referenced predictions from some economists that Turkey’s starvation line may slip below the new minimum wage within months if inflation is not brought under control.
Statements from other political parties prior to Tuesday morning’s announcement also indicated that they had hoped for a higher figure. Republican People’s Party (CHP) Spokesperson Faik Öztrak had announced on Monday evening that the party was hoping for a figure around 15,000 Liras per month. The pro-Kurdish People’s Democratic Party (HDP) had also announced on Monday evening: “The minimum wage must be raised to 16,250!”
Although advocates of the new wage hike have pointed to the fact that the 11,402 TL figure in US Dollars represents the highest minimum wage ever instituted in Turkey, critics contend that runaway inflation and skyrocketing housing prices across the country have rendered such claims meaningless.
The new minimum wage hike is set to take effect at the beginning of July.
