New assessment of the minimum wage from the business world

Vedat Işıkhan, Minister of Labor and Social Security, stated that the minimum wage, which will be valid in the second half of 2023, will be applied at 13,414 lira gross and 11,402 lira net.

Representatives of the business world, in their statement, made assessments of the new figure of the minimum wage.

‘WE ARE VALUABLE’

Regarding the new minimum wage figure, Foreign Economic Relations (DEİK) Chairman Nail Olpak said: “We believe that it is valuable for labor’s share of national income to reach the levels it deserves with the increase of 34 percent in the minimum wage, in terms of increasing the inclusiveness of growth.

DEİK President Olpak, in his written statement, wished that the new minimum wage would be beneficial for both employers and employees and the Turkish economy.

Olpak stated that it is gratifying that this important data, which affects the distribution of income according to living conditions and inflation, employer costs, competition in international trade and production, arises with the agreement of the parties, and made the following statements.

“One of the two topics we give more importance to in the growth data; growth is inclusive and sustainable. We consider it valuable that with the 34 percent increase in the minimum wage, the labor share in national income reaches the levels it deserves, in terms of increasing the inclusiveness of growth. On the other hand, it will be important that part of the burden that will occur on the employer is covered by our state, since it does not hinder our competitiveness”.

ITO: SATISFACTORY

Istanbul Chamber of Commerce (ITO) President Şekib Avdagiç also wished the new minimum wage to be beneficial to working life stakeholders, saying, “It is nice that the employee’s purchasing power is maintained with an increase welfare above inflation.”

Noting that they believe it would be beneficial to include 3 more issues in the minimum wage package, Avdagiç said: “First, update the income tax brackets taking into account the increase in the minimum wage and the losses experienced in the last 5 years; second, by raising the severance pay ceiling as much as inflation; The third is the removal of the SSI upper limit multiplier at the old rates.

REQUEST FOR INCREASED SUPPORT OF MUSIAD

Mahmut Asmalı, Chairman of the Association of Independent Industrialists and Entrepreneurs (MUSIAD), wished the new minimum wage would be beneficial to employers and employees, saying they were pleased that the sweat and efforts of workers were not crushed by inflation. .

Asmalı said: “On this occasion; We reiterate that we firmly believe that we will approach our inflation target step by step in the medium and long term, with the effect of the measures taken by the new economic administration. We believe that the confidence of the new Council of Ministers in the real sector and the markets will also contribute positively to price stability through the channel of expectations.

Speaking about the decline in inflation figures, Asmalı said:

“To ease the additional burden of wage increases on employers, it is essential to increase existing supports and incentives. In this context, the fact that the support of the minimum wage of 400 TL has been increased to 500 TL has been a very pleasant development for our employers.

Thus; As we have said in the past, providing additional positive privileges for minimum wage workers within the scope of the industrial sector will be an important step in increasing our employability and production capacity for manufacturing, and that the idea of ​​applying a regional minimum wage as An alternative to the current application of the national minimum wage, which is insufficient to reflect regional differences, is absolutely fundamental and we reiterate that it must be evaluated”.

‘THE INCREASE SHOULD NOT BE MADE AGAINST HIGH PRICES’

Orhan Aydın, President of the Anatolian Association of Lions Entrepreneurs of Anatolia (ASKON), stated that they see the minimum wage as a fee that they expect as employers and that this increase should not be eroded by price increases, emphasizing that it is essential to engage in a hard-fought fight against inflation.

Noting that the main condition for increasing employee welfare is the fight against inflation, Aydın used the following statements:

“No matter how much we raise the minimum wage, the welfare of our people will not rise unless we bring inflation down to single digits. As employers, among our expectations was the announcement of the minimum wage determination commission in the amount of TL 11,402. The annual increase reached 107 percent. We can say that there was an expected increase. However, for this increase to be significant, it definitely depends on ensuring price stability and ensuring a predictable economic order.” (AA)