Highest Pension Raise in Six Years to Be Applied for Retirees
Because of the high inflation announced in the first four months of 2017, the difference increase to be applied in June has reached a rate that is good news for retirees. Based on calculations by the Retirees Association (TÜED) using data from the Central Bank and the statistical authority, a 6.57% raise is expected in July. As a result, the minimum pension for more than 2 million worker retirees could rise to around 1,500 Turkish lira.
With this calculated rate, approximately 12 million retirees are expected to receive the largest salary increase seen in the last six years in July. Under current regulations, inflation used to determine pension increases reached 5.7% in the first four months. Inflation is also expected to be high in May and June. End-of-May inflation figures will be announced imminently, with estimates around 0.60%. It does not appear likely that June inflation will be negative.
How Much Will Retiree Pensions Increase?
According to TÜED President Kazım Ergün and the association’s calculations, SSK worker retirees will receive a 6.57% raise in July. Consequently, the lowest monthly pension for about 2 million people who retired before 2000 is expected to increase by 93 lira to 1,495 lira. Those who retired after 2000 are expected to receive a 41 lira raise, raising the base pension to 882 lira in July.
Will BAĞ-KUR Retirees Receive a Raise?
According to the inflation calculations, BAĞ-KUR retirees would also receive a 6.57% increase. The lowest BAĞ-KUR merchant retiree pension would rise by 77 lira to 1,262 lira, while the lowest BAĞ-KUR agricultural retiree pension would increase by 50 lira to 933 lira.
According to the calculations of the Turkish Retirees Association;
Will Civil Servant Retirees Get a Raise?
Civil servant retirees received a 3% raise in January 2017. With inflation estimated to reach 6.57% by the end of June, that 3% increase falls short of inflation. Under current rules, the inflation difference determined at the end of June is applied proportionally to civil servant pensions based on each retiree’s status. Therefore, the resulting 3.47% difference will be reflected in civil servant pension payments. In addition, the 4% increase set for the second half of 2017 will also be applied to pensions in July. As a result, the minimum civil servant pension will increase by 126 lira to 1,784 lira.