The hikes within the minimal wage have outpaced inflation charges, Türkiye’s high economic system official mentioned on Saturday, days after the announcement of the rise in salaries for subsequent 12 months.
“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 mentioned in a written publish 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 said.
The minister mentioned the worth 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 mentioned.
Labor and Social Security Minister Vedat Işıkhan introduced earlier through the week that the minimal wage in Türkiye for subsequent 12 months was decided as TL 22,104 (round $630), up 30% from the earlier 12 months.
Turkish central financial institution initiatives inflation to say no to 21% by the tip of 2025, with a medium-term inflation goal set at 5%.
“We have always stood by our employees during our government’s tenures,” Şimşek additional mentioned.
He went on to clarify that the employment figures rose by 13.7 million folks within the 2005-2024 interval, which he mentioned 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 additionally referred to the rise in minimal wages in greenback phrases in 2002, when the ruling Justice and Development Party (AK Party) got here into energy versus the present quantity.
“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 mentioned.
“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.
Source: www.dailysabah.com