Negotiation on the minimum wage will be opened at 15,700 TL
Good calculations have already begun ahead of negotiations for the new minimum wage, which will apply early next year. November inflation will be decisive in the negotiations that will begin in December.
4-MONTH INFLATION 29.4 PERCENT
Inflation was 29.4 percent in the four-month period from July. If November inflation is announced around 3 percent, a similar figure is estimated for December and at least 37.3 percent will be on the agenda for six-month inflation. This means that the minimum wage must be increased to at least 15,700 lira in the new year to compensate for the loss even taking into account inflation alone. Therefore, since the inflation calculation will be taken into account in the table, the minimum wage negotiation is expected to start from at least 15,700 lira.
Minister of Treasury and Finance Mehmet Şimşek stated that future inflation forecasts, not actual inflation, should be taken into account when determining salary increases. Since predictions never come true, increase negotiations are usually made based on annual or last 6-month inflation data. The Central Bank predicted that inflation would fall to 36 percent by the end of next year. However, even in the Central Bank’s predictions, the fact that inflation rises to 75 percent by the end of May indicates that average annual inflation will be much higher than 36 percent. President Tayyip Erdoğan, unlike Şimşek, promised that they would not make employees suffer from inflation. If Erdoğan fulfills his promise, the minimum increase is expected to be around 40 percent.
The electoral surprise may come
Although the minimum wage is discussed at the negotiating table, the final decision is made by President Erdoğan. Erdoğan increased the collective bargaining increase for public workers just before the last general election and then made the same promise to public officials. Now, with minimum wage negotiations taking place just before local elections, it is claimed that the labor side has a big advantage at the table and it will not be a surprise if the rate of increase is determined to be around 50 percent. If this increase occurs, the new
The minimum wage will be 17 thousand 103 TL.
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.
