How much will the pension be? Eyes on inflation rates for pension increases…
Millions of citizens, living on a pension well below the starvation limit, are curiously waiting how much their salary will increase in the new year. Retirees were excited when President Recep Tayyip Erdoğan announced that his pension would be determined through a meeting, just like the minimum wage increase determination.
HOW MUCH WILL THE RETIREMENT SALARY BE?
If there is no additional increase for the election year, the salary of retirees will increase with a very small increase.
If inflation rises to around 3 percent in December, retired civil servants will have to settle for a tiny 18.6 percent wage increase, and retired workers, merchants, and farmers 17.5 percent.
RETIRED PEOPLE INCREASED 17 PERCENT IN JANUARY
According to TUIK, consumer prices have increased by 14.05 percent in the last 5 months since July. In July, civil servants and retirees of civil servants increased 7 percent, excluding the difference in inflation. According to the calculation method of the Ministry of Finance and Finance, civil servants and civil servants will receive an inflation difference of 6.6 percent during the last 5 months. This difference, which shows that salaries and pensions have melted even in the face of TUIK inflation, which does not measure the real cost of living, will not be paid immediately, but with the increase in the collective agreement that will be made in the new Year. . If inflation rises 3 percent in December, 6-month inflation will rise to 17.5 percent. Thus, the difference in inflation between civil servants and retirees will increase to 9.8 percent. In addition to the inflation difference, the total increase rate will remain at the level of 18.6 percent with the 8 percent collective bargaining increase that the civil servant and the retiree will receive. The pensions of the retired workers, merchants and farmers will increase in 6 months, that is, by 17.5 percent.
EXPLANATION OF ERDOĞAN’S RETIRED SALARY
President Erdoğan also spoke about civil servants and pensions at the press conference where he announced the minimum wage. The headlines of his speech are as follows:
– In recent weeks we have resolved with understanding the additional indicator of public officials to the transfer of contracted employees to the workforce. In this way, we will determine the rates of increase of civil servants and pensions.
– As is known, the minimum wage, which was 184 TL in 2002, increased 30 times in nominal terms and 142 percent in real terms during our period. At the beginning of last year we increased the minimum wage by 50 percent, taking into account the conditions of those days, to 4,253 lira net. Not only that, we abolished the income tax and the minimum wage stamp. In July, with the new regulations, we increased the minimum wage to 5,500 liras.
THE MINIMUM FEE SHOULD BE EXAMPLE
Memur-Sen Chairman Ali Yalçın, on social media right after Erdoğan’s speech, said: “The increase in the minimum wage should be an example, and other people on fixed incomes should also be protected. By 2023, the minimum wage was increased by 54.7 percent and set at 8,500 TL. This increase must be an example, the fear of inflation must end and the purchasing power of public officials must be increased for a fair distribution of income.