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Turkey raises minimum wage, falls short of expectations amid deepening economic crisis

The Turkish government has increased the minimum wage to 11,402 liras (~$483) from 8,506 (~$360) liras per month, representing a 34 percent rise. However, this adjustment has failed to meet expectations in a country grappling with a severe economic crisis.

12:12 pm 20/06/2023
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Turkey raises minimum wage, falls short of expectations amid deepening economic crisis
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Turkey has implemented a 34 percent increase in the minimum wage, raising it to 11,402 liras (~$483) from 8,506 liras (~$360) per month. Despite this effort, the adjustment has been met with dissatisfaction in a nation facing ongoing economic crisis.

The recent increase in the minimum wage falls short of addressing concerns expressed by various political figures and organisations. Green Left Party co-spokesperson Çiğdem Kılıçgün Uçar pointed out that the poverty line in Turkey stands at 33,000 liras (~$1398). Challenging the government, Uçar questioned how individuals would be able to make ends meet with the inadequate increase.

The new minimum wage was also criticised by a member of Turkey’s main opposition Republican People’s Party (CHP), Veli Ağbaba. Ağbaba argued that it does not adequately compensate for the losses incurred due to inflation or the depreciation of the currency. He expressed concerns that the minimum wage would remain below the poverty line for the next six months, failing to alleviate the financial struggles faced by workers.

The minimum wage has raised concerns regarding the representation of workers’ interests. The president of the Confederation of Turkish Trade Unions’ (TÜRK-İŞ), Ergün Atalay, faced accusations of favouring the government over the workers’ demands during the commission meetings.

Debates surrounding the ongoing commission meetings between the government, TÜRK-İŞ, and the Confederation of Employer Associations of Turkey (TİSK) to determine the minimum wage increase for the second half of 2023 continued through the last week. Atalay drew criticism for not sharing the wage amount they had requested during the commission meetings with the public.

Prior to Tuesday’s official announcement of the minimum wage and in response to the ongoing discussions, the Peoples’ Democratic Party (HDP) emphasised the impact of inflation. The pro- Kurdish party highlighted that the minimum wage increase would not provide an increase in welfare or maintain current standards of living, stating that “cosmetic improvements will be quickly taken back by inflation” while proposing a minimum net wage of at least 16,250 liras (~$688).

The CHP, on the other hand, emphasised high inflation and the consistently rising poverty line, recommending a minimum wage of at least 15,000 liras (~$635) to prevent the exploitation of workers.

Former Minister of Labour and Social Security, Vedat Bilgin, had previously announced that the new minimum wage would be around 500 dollars ahead of the national elections held in May.

TÜRK-İŞ’s decision to agree to a wage lower than the cost of living determined for individuals has triggered backlash from workers on social media platforms. According to TÜRK-İŞ’s report for May, the monthly cost of living for a single employee has reached 13,440 liras (~$569), with the hunger threshold for a family of four set at 10,360 (~$439) liras and the poverty threshold at 33,750 liras (~$1430).


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