The ITO President’s call for a minimal increase in the minimum wage

Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç stated that the minimum wage in Turkey should be determined on the basis of the Turkish lira (TL) and said: “Our business world does not consider it appropriate to determine a rate that is valid within the borders of Turkey in foreign currency”.

After the cabinet meeting at the Presidential Complex, President Recep Tayyip Erdoğan’s statement: “We are starting work on our Minimum Wage Determination Commission” stirred up the working life agenda.

All eyes were on the new minimum wage figure, which directly affects more than 7 million employees and indirectly affects all citizens.

In this context, the Minimum Wage Determination Commission, made up of workers, businessmen and government representatives, will meet in the coming days to determine the increase to be made to the current figure, which is applied at 10 thousand 8 gross liras and 8 thousand net. 506 lire.

FORMER MINISTER SAID ‘IT WILL BE FROM 500 DOLLARS’

The Minister of Labor and Social Security, Vedat Bilgin, in a live broadcast on the evening of May 26, regarding the expected minimum wage increase in July, said: “We reached an agreement in January that took it to the highest level. high of more than 455 dollars in dollar base in the history of the Republic. We will do the same in July. It will be a fee of approximately 500 dollars. Our work is done, ”he said.

The minimum wage, which was $455 at the beginning of the year, has dropped to about $364 today.

RECOMMENDED THAT THE MINIMUM WAGE BE DETERMINED IN TL

In his statement on the subject, İTO President Şekib Avdagic said that, in principle, the minimum wage in Turkey should be determined on the basis of TL.

Emphasizing that national data must be taken into account when calculating the minimum wage, Avdagic continued as follows:

“Our business world does not find it appropriate to determine a rate in foreign currency, which will be valid within the borders of Turkey. Türkiye has its own system and tradition that it has created for so many years.

We expect the new minimum wage to be determined in accordance with methodologies to date. Our expectation regarding the rate of increase of the minimum wage is to take into account the CPI for the first 6 months.

Thus, the protection of employees against inflation will be realized. In addition to the minimum wage, the income tax brackets of our employees must be reorganized taking into account the increase. The income of our employees will be protected with the introduction of these regulations.”

ATTENTION TO THE EMPLOYER

Şekib Avdagiç drew attention to the employer side of the issue, saying: “When we look at the cost of the amount received by the employee to the employer, we see that; the cost ratio is above the OECD average in Turkey. We expect it to be in line with the OECD average in a short time. Therefore, income tax rates above the minimum wage will be regulated and the minimum wage will be improved.”

Stating that arrangements need to be made regarding severance pay and the upper limit of insurance, Avdagic said:

“We have a basis for both severance pay and the insurance cap. Both place a serious burden on employees through employers. For example, the SSI upper limit was applied at 5 times the minimum wage. We gradually increase this rate to 7.5 times and apply it to 75 thousand lira.

This means: An employee who receives a gross salary of TL 75,000 pays SSI premiums to the state, one third of the salary he receives, including the employer’s part. This is an unreasonable figure. For this reason, as a business world, we expect the SGK upper bound multiplier to drop to the above rates. Likewise, we want the cap on severance pay to be removed from the minimum wage and increased at the rate of inflation. This approach will be an approach that will establish social justice.” (SÖZCÜ-AA)