Millions of civil servants and retired citizens are waiting for the raises that will be announced at the beginning of July. As is known, salaries for civil servants and retirees in our country are adjusted twice a year, every six months. These raise rates are determined based on the six-month inflation figures published by the Turkish Statistical Institute (TÜİK).
TÜİK has released inflation figures for the first five months, leaving only June’s inflation data to be announced. Meanwhile, there is also expectation for an increase in the minimum wage, and citizens are asking for a rise in July. How much will civil servants and retirees receive in July? Will the minimum wage be increased?
All Eyes on July for Civil Servant and Pension Increases
TÜİK will announce June’s inflation figures on Monday, July 4. Once these figures are published, the exact rate of the raise to be applied to civil servant and retiree pensions will be finalized. Minister of Labor and Social Security Vedat Bilgin has stated that work will be done in July to ease the burden on workers hit by inflation. So who will receive how much in July? Tarkan Zengin, a lecturer at Ankara Yıldırım Beyazıt University, evaluated the July raise arrangements during a TRT Haber broadcast.
How Much Will Salaries Increase for Civil Servants and Retirees?
Zengin explained that salaries for civil servants and civil servant retirees are determined according to the 6th period collective agreement. He noted, “The second half-year raise for 2022 was 7 percent, plus there is an inflation difference.”
“Currently, the consumer price index for the first five months shows inflation of 35.64 percent, but in calculations the inflation difference is around 28.14 percent. There may of course be some variation. Therefore, a 35.64 percent raise — excluding June — is already in the pipeline. The Central Bank’s inflation forecast is 3.77 percent. If that forecast proves accurate, there is a high likelihood of a raise close to 40 percent,” he said.
“Nearly 40 Percent Increase for More Than 20 Million People”
Zengin reminded listeners that some salaries are determined by civil servant indicators. He also pointed out that workers and BAĞ-KUR retirees receive raises based on the last six-month consumer price index, and that this group also effectively has a 35.64 percent raise in view. With the Central Bank’s 3.77 percent expectation reflected, he said the increase for these groups could approach 40 percent. Zengin added that old-age pensions, disability pensions, home care payments, and survivor pensions would be raised at the same rate.
Zengin stated, “Looking at the overall picture, wages for a group exceeding 20 million people will see an increase of nearly 40 percent. An additional budget proposal has been submitted to the Turkish Grand National Assembly, and the reasons given for this additional proposal relate to salary increases for personnel.”
Will the Minimum Wage Be Increased?
Expectations about civil servant and retiree salary increases are largely clear in light of the first five months’ inflation data and the Central Bank’s forecasts. However, uncertainty remains over whether the minimum wage will be raised. On this topic, Tarkan Zengin said, “A raise above the 40 percent expectation is also on the table for July. Our President and the Minister of Labor and Social Security are also discussing possible additional increases, including for the minimum wage.”
What Will the Lowest Pension Amount Be?
Zengin recalled the minimum pension level and said that the current floor of 2,500 TL could be raised to around 3,500 or 4,000 TL. He emphasized that attention is currently focused on the upcoming raises: “From January 15, 2023, salaries will be adjusted with the increases, and especially those whose additional indicator rose from 3000 to 3600 will receive an additional rise of about 21–22 percent. Right now we are discussing the increase that will be applied according to inflation.”