Minimum wage hiked by 49 percent for 2024

ANKARA

The monthly met minimum wage will be 17,002 Turkish Liras ($578) in 2024 for millions of employees, Labor and Social Security Minister Vedat Işıkhan has announced.

The new minimum wage level is 49 percent higher compared with July, when the wage was increased in a mid-year adjustment. It marks a 100 percent hike from January last year.

“The minimum was hiked to 11,402 liras in July with the 500 liras of support the government provides. This support is now increased to 700 liras,” said Işıkhan at a press conference in Ankara, also attended by the representatives of the employers’ and labor unions.

The net minimum wage has been hiked by 3.5 times in real terms since 2022, the minister added.

“We are pleased to once again fulfil our pledge to prevent workers from being crushed by inflation,” Işıkhan said.

The annual inflation was 61.98 percent in November, accelerating from 61.36 percent in the previous month. The Central Bank expects inflation to reach its peak in May next year and disinflation process to begin in the second half of next year.

With the latest hike in the minimum wage, hiring a worker will cost businesses 23,502 liras.

“The minimum wage should be at a reasonable level. Our goal should be to increase the average wage. I urge businesses, which are capable of paying higher wages to take those additional steps,” said Özgür Burak Akkol, the president of the Turkish Confederation of Employers’ Associations (TİSK).

Ergün Atalay, the leader of the labor union Türk-İş, voiced discontent with the new level of minimum wage.

“We demanded a minimum wage at 18,000 liras and that wage negotiations should be held twice a year,” Atalay said, adding that the minimum wage directly impacts 9 million workers.

Some 90 percent of businesses do not pay their workers above the minimum wage, he said.

Even though, he said that the new minimum wage is not acceptable, Atalay did not indicate that the labor union would take any actions.

In a report released last month, the labor union calculated the “hunger line,” which is the monthly food expenditure of a family of four, at 14,026 liras for November.

The wage negotiations were launched earlier this month and were supported to be concluded by the end of December.

The Minimum Wage Determination Commission, which includes government officials and the representatives of the employers’ and labor unions, has held three rounds of talks.

In line with the hike in the minimum wage, the unemployment pay and severance pay for employees will be increased.