CHP leader Kılıçdaroğlu proposes dollar-indexed minimum wage in Turkey
Facts about the minimum wage in Turkey
The economic crisis that has raged since 2018, the job and income losses due to the pandemic and the recent surge in prices have reduced the purchasing power of workers, making prices high and making it difficult to make ends meet. one of the most important social problems.
Turkey is one of the countries with the highest number of working hours among the OECD countries; however, workers cannot get their share of economic growth or increased production.
The minimum wage is currently below the famine line in Turkey. There is a huge gap between the net minimum wage (2,825 TRY) and the famine threshold, which currently stands at over 10,000 TRY.
With the depreciation of the TRY, the minimum wage hit its lowest point in the past 15 years when calculated in US dollars.
The minimum wage has also ceased to be the lowest limit of wages and has become an average wage. Compared to European countries, Turkey is the country with the highest minimum wage rate.
In addition, a large amount of taxes and wage reductions are levied on the minimum wage. In 2021, the amount of taxes and reductions exceeded 750 TRY in total. As a result of indirect taxes paid by workers, the net available amount of the minimum wage is becoming increasingly meager.
Minimum wage in Turkey over the years
Following the minimum wage talks last year, the minimum wage was increased by 21.56 percent. With this wage increase, the minimum wage has been raised to TRY 2,825.90 for a single worker.
After the minimum wage talks the previous year, the minimum wage was increased by 15.03 percent, 3 percentage points above the official consumer inflation rate announced by TurkStat.
So, with this wage increase, the minimum wage went from TRY 2,020.90 to TRY 2,234.70 for a single worker.
As for the net minimum wage in Turkey in previous years, it was 1,603 TRY in 2018, 1,404 TRY in 2017 and 1,300 TRY in 2016. While the net minimum wage was 949 TRY in January 2015, it has was increased to 1000 TRY as of July 2015. While the net minimum wage was 773 TRY and 803 TRY in January and July 2013 respectively, it was subsequently increased to 846 TRY in January 2014 and 891 TRY in July 2014.
How is the new salary determined?
The wage increase to be made to the monthly minimum wage next year is decided by the Minimum Wage Determination Commission headed by the Turkish Minister of Labor and Social Security.
The commission consists of 15 members: five members are appointed to represent the government, five people by the Turkish Confederation of Employers’ Associations (TİSK) and five people by TÜRK-İŞ, the largest trade union confederation in the country, to represent the workers.
While the majority of votes of these 15 members is sufficient to determine the minimum wage, the first meeting is held at the Ministry, the second and third meetings are hosted respectively by representatives of employers and workers and the fourth and final meeting is held. back to the ministry.
In the event of a tie in the final vote, the vote of the committee chairman determines the new minimum wage.