In the first week of January, as we started a new year, the new minimum wage numbers were announced for the Republic of Türkiye by the Ministry of Labor and Social Security. Minister Vedat Işıkhan announced the decision that came from the Minimum Wage Determination Commission’s discussions with the participation of delegations sent by both various employers and workers. The decision of increasing the minimum wage by 30% was made.
The previous net minimum wage was 17,002 Turkish Liras, it is now 22,104, this number is achieved when we subtract the unemployment insurance and the Social Security Institution (SGK) premium from the gross amount of 26.005 Turkish Liras.
The Minister Işıkhan expressed his opinions, the council he is a part of, and the government as hopeful towards future actions. Işıkhan stated that the amount was decided after meticulous calculations, and in order not to disrupt the economic plans of any business while also providing support to workers and employees amid inflation. He also mentioned that the main goal is to secure and increase purchasing power without discriminating against classes of society and to make the welfare achieved through this change permanent as people struggle with over-priced goods. He depicted a desire to achieve a state of balance, with less volatility and fewer externalities caused by the underconsumption of goods.
Despite these hopeful and positive words from the government executives, it is possible to say that the Turkish society was neither happy nor satisfied with this increase. As inflation levels remain very high in Türkiye, which were announced to be 44.38% as of the change between December 2023 and December 2024, many do not believe that these are the actual numbers, believing instead that the actual rate is even higher—more than 80%, as stated by the Inflation Research Group (ENAGrup).
The rise in the minimum wage, 30%, is less than the inflation rate, which is thought to be at least 44%, and thus is insufficient to cover all the burden that this high rate creates on society. Every day, in any place, city, or street in Türkiye, we see the negative impacts of this rate; we read news articles about people searching for food in trash cans, being unable to consume meat, or access quality healthcare, among many other problems. This state of economic imbalance is not normal and is completely unwanted by all, but these increases in minimum wage do not fully address this.
Prior to 2025—in 2006, 2008 and 2016—the minimum wage increases were less than the announced inflation amounts, and in other years, the increase in the base pay was either the same or higher than the inflation. In the declaration that Mehmet Şimşek, the minister of Treasury and Finance, made on his X account, he stated some statistics that support this point. Starting his statement with the words, “Price stability is a prerequisite for a permanent increase in the purchasing power and welfare of our employees. The ultimate goal of the program we are implementing is sustainable high growth and fairer income distribution. We have always stood by our employees during our governments," he expressed the most significant goal of these economic reformations, plans and programs. He continued by stating that as of 2023, the inflation was 64.8%, and the increase in the lowest wage level was 107.3 percent. He added, “While the 2024 inflation realization expectation was approximately 45 percent, the minimum wage increased by 49.1 percent.”
Şimşek also explained that, in the 2005-2024 period, employment increased by 13.7 million people, meaning that more than 680 thousand jobs were provided annually. Since June 2023, as the ministry started implementing new programs, the growth has reached levels of 1.4 million.
Furthermore, he mentioned that “the minimum wage, which was 112 dollars in 2002, is now 196 dollars according to US inflation. For 2025, the minimum wage is over 620 dollars at the current exchange rate.” This statement reinforced that the dollar equivalent of the price floor implemented for the wages of workers has grown more than 5 times since 2002.
The current base payment level of Türkiye is higher than that of other developing countries, including Romania, China, Russia, Egypt and Bulgaria, according to Mehmet Şimşek.
Another issue is the position of the minimum wage relative to the hunger and poverty thresholds. The monthly food expenditure of a four member family was estimated to be around 19,235 Turkish Liras to maintain a healthy, balanced and adequate diet; and this was based on July 2024 data, when the minimum wage was 17,002 TL. Despite the base payment being increased to 22,104 Turkish Liras and exceeding the hunger limit, it is still extremely lower than the poverty limit, which is the total compulsory monthly expenditures set at 62,652 TL. Additionally, the cost of living for a single employee was declared to be 24,901 TL, a level still not reached.
We can say that although there have been efforts to make the minimum wage grow more than inflation, this year these efforts have failed. Facing society’s negative reactions, the year did not start optimistically from an economic perspective.
Edited by: Ömer Gökce, Yağmur Ece Nisanoğlu