Ministries are working quickly on the raise to be applied to pension payments. Details of the pension increase will become clearer after a critical meeting expected this week. Work will accelerate once the Parliament opens. A hint about the additional raise formula for pensions was given by Vice President Cevdet Yılmaz. Read on for information about the pension raise formula.
Increase Expected for the Lowest Pensions
Alongside Vice President Cevdet Yılmaz’s team, the Ministry of Treasury and Finance and the Ministry of Labor and Social Security have intensified their work to prepare regulations for the raises mentioned by President Erdoğan, especially with Parliament reopening.
Millions of retirees are awaiting this reform, which may be finalized after the critical meeting officials plan to hold this week. Treasury and Finance Minister Mehmet Şimşek recently noted that the system for both civil servant and retiree raises will change. Şimşek indicated that increases would follow target inflation rather than realized inflation. After Şimşek’s remarks, Vice President Cevdet Yılmaz provided an additional hint about the formula for the raise.
What Changes Will Occur to Pension Payments?
Vice President Cevdet Yılmaz mentioned “proportional increases” and a “welfare share,” noting that, from 2024 onward, civil servant salaries would rise in line with inflation and that these raises would also apply to retired civil servants.
Yılmaz also said that workers, Bağ-Kur contributors and minimum pension recipients would receive proportional increases and inflation adjustments, and that the pension raise work expected to be completed by year-end would include measures aimed at supporting those with low pensions.
Focus on Parliamentary Opening for Pension Raise
Faruk Erdem, Economy Editor at Takvim newspaper, reminded that raises are usually applied twice annually in January and July and said an additional raise requires a legal regulation. Erdem emphasized that this regulation should be enacted quickly and reflected in retirees’ payments, noting that the parliamentary stage is essential and that ministries are continuing technical work.
Erdem added that formulas previously used for civil servants—such as flat-rate increases or proportional supplements like a welfare share—are expected to be adapted for retirees. He said the draft will be sent to Parliament and, once approved, published in the Official Gazette to take effect. However, he noted uncertainty about whether the raise will be applied before or after the new year.
Social Security expert Murat Bal said an increase in pension payments is expected and that it may take the form of an inflation difference from the second half of 2023 plus a welfare share. Bal predicted that the lowest pension could be raised to just over 10,000 lira, but added it is not yet clear whether the increase will come from Treasury support, a flat-rate raise, or an increase to base wages.
With Parliament’s opening expected to clarify the pension raise, projections suggest the minimum pensions for retired civil servants could rise from 9,876 lira to the 12,000–13,000 lira range. The exact mechanism and formulas to be used for the increase are expected to be finalized in the coming period.