How much will the minimum wage increase in 2023? Negotiation begins for minimum wage increase

It is on the agenda to increase the minimum wage, which is determined once a year, for the second time with an interim increase this year. While the purchasing power of citizens decreases, inflation continues to increase every month. The Minimum Wage Determination Commission is expected to meet 4 times in the framework of the new minimum wage determination studies and determine the minimum wage in July at the latest.

HOW MUCH DOES THE MINIMUM WAGE INCLUDE?

While the business world was demanding that the minimum wage, which was pronounced at $500 before the election, be made in TL, a calculation on 6-month inflation data was also pointed out. While negotiations are expected to be completed before the holiday, the correction will be made ahead of the 6-month inflation to be announced on July 5. In the case of a possible increase between 15 and 30 percent within the scope of the discussed scenarios, the net minimum wage, which is currently TL 8,506, will reach a level between TL 9,781 and TL 11,057.

FIRST EXPLANATION AFTER THE MINIMUM WAGE BOARD

The meeting organized by the Ministry of Labor and Social Security under the chairmanship of General Manager of Labor Sadettin Akyıl was attended by the delegation of Türk-İş on behalf of the workers and the Turkish Confederation of Employers’ Unions (TİSK) on behalf of employers.

The first minimum wage meeting lasted about 1 hour.

After the meeting, Veli Solak, head of the Turkish business delegation representing the working class, said:

“Our demand, as Türk-İş, is to end this meeting as soon as possible, as befits the Turkey Century.

‘NUMBER NOT SPOKEN’

We want our brothers working for the minimum wage to be updated according to the conditions of the day, according to the economic crisis, according to the rents of the houses, according to the cost of living. Official documents have been requested, we will make a statement. No figures were disclosed.”

Solak said it is not yet clear when the second meeting will take place.

65 PERCENT MINIMUM FEED

As of 2021, the rate of workers earning 10% more or less than the minimum wage is estimated to be 48.7%. This rate is around 64.7% for employees in the private sector. Vedat Bilgin, who was labor and social security minister before the new cabinet, pointed to a level of $500 in the minimum wage. “We will regulate the minimum wage in July so that real purchasing power is preserved. In January we made a deal that took it to the highest level of more than $455 in dollars in the history of the Republic. We will do the same in July. Explaining that it will be a fee of approximately 500 dollars, the former minister pointed out that the work was ready. When Vedat Bilgin made a statement of $500 on May 9, the dollar was at 19.55 lira and the minimum wage of 8,506 lira was equivalent to $435. $500 was about 9,780 lira. Today, considering that the dollar is at the limit of 24 TL, the minimum salary of 500 dollars corresponds to 12 thousand liras.

MESSAGE OF 12 THOUSAND TL FOR THE MINIMUM WAGE UNDER THE CONDITION OF CONVENIENCE FOR THE EMPLOYER

Another name that spoke to Sozcu.com.tr, the Turkish Union of Chambers and Commodity Exchanges (TOBB) Turkey Services Assembly Chairman of the Board of Directors Hüseyin Bozdağ, said that they are already having difficulty finding employees for 8,500 TL, so the new minimum wage is 10 thousand TL, he said that in the case of a new situation, they could pay it, but if new facilities are provided to the employer, this amount could increase up to 12 thousand TL.

DISC SIGNED 16 THOUSAND TL

Speaking to Sozcu.com.tr, DİSK President Arzu Çerkezoğlu stressed that it is difficult to pronounce a figure for the new minimum wage before the June inflation figures are known, but when we look at the data for the line of hunger and poverty, the figure that should be is already clear.

Recalling that according to Türk-İş data, the hunger limit was increased to TL 10,362 and the poverty line to TL 33,752 in May, Çerkezoğlu said: “When two people in a family work, they should be able to enter a house at least as much as the poverty line”.

This points to a demand for the minimum wage to be 16,000 TL.

Çerkezoğlu said that the minimum wage must be updated 4 times a year until inflation falls back to single digits, and that certain criteria must be taken into account when determining this salary:

“The calculation must be made in order to reduce the purchasing power of the worker with the minimum wage against real inflation, the dollar exchange rate and gold prices and so that the worker lives with his family, not on the cost of life of a single worker as it is now. Another criterion should be to increase the participation of the worker in the increase and growth of the national income”.

Regarding the Minister of Labor’s statement of ‘500 dollars’, Çerkezoğlu continued as follows:

Although there are statements like “We made a record rise”, these rises remain as a text on water because there is very high inflation. Therefore, instead of issuing a dollar figure, the purchasing power of the minimum wage should be preserved. The country needs to get out of the spiral of high inflation. There is a need for a holistic improvement in the economy.”

WHEN THE MINISTRY OF LABOR SAYS ‘500 DOLLARS’, 9 THOUSAND TL IS 750

President Tayyip Erdoğan, who declared that they would review the minimum wage before the last elections, clearly said: “There is a provisional increase in the minimum wage in July.”

Vedat Bilgin, Minister of Labor and Social Security, made clear statements about the minimum wage increase in July, as well as giving a figure on how much it would be.

In early May, “We made an adjustment in January that brought it to the highest level of more than $455 dollars in the history of the Republic. We will do the same in July,” Bilgin said, adding: “The fee will be approximately $500. Our work is done, ”he said.

While Bilgin was making this speech, $500 corresponded to 9,750 TL, as of today, $500 has exceeded 10,400 TL due to the acceleration of the increase in the dollar exchange rate after the elections.

HOW IS THE MINIMUM WAGE DETERMINED?

The Minimum Wage Determination Commission, consisting of 15 people, each of whom is five representatives of the employee, the employer and the government, determines the minimum wage. The Commission is convened by the Ministry of Labor and Social Security and meets four times by custom, as part of the work to determine the new minimum wage.

The commission, chaired by one of the members determined by the Ministry, meets with the participation of at least 10 members and decides by majority vote. In case of equality of votes, it is accepted that the party with the president obtains the majority.