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The hikes in the minimum wage have outpaced inflation rates, Türkiye’s top economy official said on Saturday, days after the announcement of the increase in salaries for next year.
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“The minimum wage is increasing above inflation. In 2023, inflation was 64.8% and the minimum wage increased by 107.3%. While the inflation expectation for 2024 was around 45%, the minimum wage increased by 49.1%,” Treasury and Finance Minister Mehmet Şimşek said in a written post on X.
“While the annual average growth in the 2003-2024 period was 5.3%, the real increase in the minimum wage was 5.6%,” he stated.
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The minister said the price stability “is a prerequisite for the permanent increase in purchasing power and welfare of our workers.”
“The ultimate goal of the program we are implementing is sustainable high growth and more equitable income distribution,” Şimşek said.
Labor and Social Security Minister Vedat Işıkhan announced earlier during the week that the minimum wage in Türkiye for next year was determined as TL 22,104 (around $630), up 30% from the previous year.
Turkish central bank projects inflation to decline to 21% by the end of 2025, with a medium-term inflation target set at 5%.
“We have always stood by our employees during our government’s tenures,” Şimşek further said.
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He went on to explain that the employment figures rose by 13.7 million people in the 2005-2024 period, which he said meant “we provided an additional employment of over 680,000 people on average annually.”
“Since June 2023, when we started implementing our program, employment growth has reached 1.4 million,” he added.
The minister also referred to the increase in minimum wages in dollar terms in 2002, when the ruling Justice and Development Party (AK Party) came into power versus the current amount.
“The minimum wage, which was $112 in 2002, is $196 today according to U.S. inflation. The minimum wage for 2025 is over $620 at the current exchange rate. The dollar equivalent of the minimum wage has increased to 5.6 times the 2002 level and 3.2 times when adjusted for U.S. inflation,” Şimşek said.
“Our current minimum wage level is higher than in developing countries such as Romania, Bulgaria, Mexico, China, Brazil, South Africa, Indonesia, Russia, Egypt and India,” he concluded.
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