In the last quarter of the past year, sudden increases in foreign exchange rates and the gold market led to steep price hikes in many everyday services and products.
Adverse economic developments at the end of 2021 caused the Turkish lira to lose value against foreign currencies, eroding citizens’ purchasing power and making it difficult for many to meet basic needs. That situation contributed to an unprecedented increase in the new period minimum wage.
In the second week of December, after work by authorized institutions, the new minimum wage increase for the period was announced by President Recep Tayyip Erdoğan. President Erdoğan declared that the 2021 minimum wage would be raised by 50.51%, bringing the new minimum wage to 4,253.50 TL.
Announcing a much larger increase than many expected generated relief across society. That relief proved short-lived, however, as renewed volatility in the gold market and foreign exchange rates after the new wage took effect led to fresh price rises across sectors from energy and food to real estate and automotive.
At the same time, the outbreak of the Russia–Ukraine war and Federal Reserve interest rate decisions began to directly affect global markets, making day-to-day living conditions increasingly difficult. With purchasing power falling, citizens worried about how to get by and cover basic needs. Encouraging statements from AK Party officials rekindled hope by suggesting a possible second minimum wage increase.
AK Party Group Deputy Signals Possible Minimum Wage Increase
Recently appearing on a television program, AK Party Group Deputy Chairman Cahit Özkan said a second increase to the minimum wage could be possible in the new period. Özkan stated: “Our President Recep Tayyip Erdoğan has previously addressed this issue. Under current regulations, the minimum wage can be raised once a year. However, it is possible to take decisions to change that. If we deem it appropriate, to prevent citizens from being crushed by inflation, we can raise the minimum wage again before a full year has passed.”
Former Economy Minister Offers Encouraging Remarks on a Second Raise
Rumors that a second minimum wage increase might be implemented, fueled by earlier positive remarks from President Erdoğan and recent comments from AK Party officials, gained further credibility.
Former Economy Minister and current Presidential Economic Policies Board member Nihat Zeybekçi also commented on the possibility of a second raise. Zeybekçi said: “If necessary, the current minimum wage should be reviewed again mid-year and a second increase should be implemented.”
June Mentioned as Possible Timing
Following earlier remarks by AK Party officials about a possible minimum wage increase, today AK Party Adana Deputy and Parliamentary Agriculture Committee member Abdullah Doğru provided a tentative timing for the announcement.
Deputy Abdullah Doğru said: “Neither our President nor our government will allow the public to face any problem in accessing food. We gave wage increases at the start of the year to workers, minimum wage earners, retirees and public servants. However, those raises have been eroded by rising prices. Now we will implement much larger increases. Inflation will not crush anyone. The changes will be announced by our President in June.”