Turkey's minimum wage hike may reach 50% in January, expert claims

Speculation is mounting in Turkey regarding a potential minimum wage increase of up to 50% in January, according to SGK expert İsa Karakaş. Karakaş suggested that the timing and magnitude of any hike could be influenced by the upcoming election schedule.

Speaking on a live broadcast, Karakaş outlined scenarios discussed in political circles. If elections are held in November, he posits that a minimum wage increase of approximately 50% could be implemented in January. This substantial raise might occur in a single adjustment or be divided into staggered increases, such as 30% followed by 20%, depending on the political climate.

Karakaş emphasized that the current minimum wage is inadequate to cover the basic living expenses of workers, particularly in the private sector where interim raises have not been provided. He pointed out that the poverty line has already surpassed 37,000 Turkish Lira, while the current minimum wage stands at 28,000 Lira. He argued that it would be unacceptable to start January with a minimum wage below the poverty line.

An alternative scenario discussed involves a more gradual approach. If a single 50% increase is not feasible in January, Karakaş suggested that a raise of around 30% could be implemented in January, followed by a supplementary increase in July. This approach, he believes, could potentially push the total annual increase beyond 50%.

The official determination of the minimum wage will be made by the Minimum Wage Determination Commission, which is scheduled to convene in December. Karakaş stressed the urgency of a significant increase, noting that even a 50% raise might not be sufficient to meet the poverty line by February 2027, given the current trajectory of living costs.