The Minimum Wage Determination Commission in Turkey is preparing to meet at the beginning of December to discuss the 2025 minimum wage increase. These discussions will take into account the year-end inflation and target inflation rates, with a possible “interim formula” coming to the forefront. So, what is this interim formula? How much will the minimum wage increase in Turkey? Here are the details everyone is curious about.
Interim Formula for Calculating the Minimum Wage in Turkey
During the meetings in December, it is expected that the minimum wage increase will be determined based on a balance between the year-end inflation and target inflation rates. The current net minimum wage in Turkey is 17,002 Turkish Liras, while opposition parties have suggested figures ranging from 28,000 to 35,000 Turkish Liras. However, the government plans to consider the 5-month inflation data and the Central Bank’s year-end inflation forecast when determining the increase.
The Central Bank of Turkey has updated its year-end inflation forecast for 2024 to 44%, and for 2025, it predicts a rate of 21%. Based on this, a possible scenario for the minimum wage increase could be a 32.5% rise. In such a case, the new minimum wage would likely be around 22,527 Turkish Liras. If the 44% year-end inflation forecast is taken into account, the minimum wage might rise to around 24,500 Turkish Liras.
2025 Minimum Wage Predictions in Turkey
The public expectation for the minimum wage increase in Turkey is between 25% and 35%. Based on these anticipated increase rates, the new minimum wage could look like the following:
- 20% Increase: 20,402 TL
- 25% Increase: 21,252 TL
- 30% Increase: 22,102 TL
- 35% Increase: 22,502 TL
- 40% Increase: 23,802 TL
When Will Discussions on the Minimum Wage Increase in Turkey Begin?
The Minimum Wage Determination Commission is set to begin its discussions at the beginning of December 2024. These talks will not only address inflation but also consider economic growth rates, employer costs, and the living conditions of workers in Turkey.
The final decision on the 2025 minimum wage increase will be announced after the meetings in December. It is advisable to follow the developments closely as the discussions unfold.
