They gave the pensioner a raise and ate the VAT
The lowest pension was raised from 5,500 lira to 7,500 lira, but while the increase was being made, the VAT refund already received by millions of retirees was included in the pension increase and destroyed. The modality, which deprives an important group of retirees of additional income, previously called a ‘VAT refund’ and now an ‘additional payment of 4 percent’, arose from the phrase ‘additional payment included’ in additional article 19 added to the Social Security Law. Nº 5510. Due to this statement, many retirees will receive VAT refunds ‘legally’.
Millions of retirees whose salaries were deposited into their pre-vacation accounts were disappointed when they saw that the VAT refund was included in the increase. For example, a pensioner whose pension was 7,500 lira before the increase was actually receiving a pension of 7,212 lira and a VAT refund of 288 lira. When the government gave the retiree an electoral raise, he told this retiree that he received 7,500 liras with a VAT refund, “his salary is already 7,500 liras” and it never increased.
There is a loss of 300 lira.
However, if the monthly VAT refund had been assessed separately, the pension of 7,212 lira would have to be increased to 7,500 lira, and the VAT refund of TL 300, i.e. an additional payment of 4 percent. , would have to be given. Likewise, the real pension of the pensioner, who receives 7,000 liras with VAT refund, is 6,731 liras. This pensioner’s pension has increased to 7,500 lira, but the VAT refund of 300 lira has evaporated. Those who previously had a pension of 7,500 TL and never received an increase received an additional 300 TL, while those whose pension was increased to 7,500 TL with the support of the Treasury were deprived of their pension.
Couldn’t get a raise because of extra pay
The inclusion of support for the refund of VAT in the account of the lowest pension has created a dual structure between retirees, those who receive and those who do not. While many retirees whose current monthly salary is 7,500 TL or less, including bonus, lost all bonus, many retirees’ bonus was cut. In addition, the rate of increase that will be made in July for millions of retirees whose pensions have been increased to 7,500 liras, will not be applied to 7,500 liras, but to 5,000, 6,000, 7,000 liras, which are pensions real without increase.
Source: Sozcu

Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.