The minimum pension was raised to 7,500 lira under the recent reform. Retirees who already receive more than 7,500 lira were not affected by this immediate increase. Labor Minister Vedat Bilgin announced that retirees with pensions above 7,500 lira who did not benefit from the adjustment will receive an additional payment called a “welfare share.” Minister Bilgin also shared encouraging news for nearly one million EYT applicants who have not yet started receiving their pensions. Speaking live on Habertürk, the Minister made several remarks that both retirees and EYT applicants should note. He confirmed that those who did not receive a raise when the minimum pension rose to 7,500 lira will receive a welfare share payment. Minister Bilgin also commented on EYT applications for those who applied for retirement but still have not started receiving pension payments. Read on for more details from the Minister’s statements.
About 1 Million EYT Applicants Received Their First Payment
On the subject of EYT, Bilgin said:
“Because of the devastation caused by the earthquake, we prioritized applications from the affected regions. The first implementations were carried out there. Approximately one million people have received their first payment. Those who have not yet received payments have not suffered any loss. Their cases are processed day by day, taking into account their qualifying days and contribution records. We were granting retirement to roughly 30,000 people a month; we raised that number to 120–130 thousand. Our SGK staff prepared diligently, working around the clock. The Parliament made a gesture and increased their overtime. They worked magnificently and reached the figure of one million. Those who are delayed should not worry, because they will receive what is owed to them retroactively.”
What About Those Who Start Working Under the New Law?
The Minister continued and clarified the situation for workers who begin employment under the new law:
“Those who enter under the new law will not face injustice. If you start work one day later, you will not be treated unfairly because you start under a known law. If a grievance arises, it is due to applying the law retroactively. What is the average age in EYT? Previously it was around 49.9; now, with EYT, it is approximately 50. Fifty is still a young age in terms of labor. There is no obstacle to working until 65. EYT addresses the problems arising from retiring at 34 or 45 and the burden that early retirement places on the pension fund. We expect roughly one retirement for every three workers as a lower bound. Before this reform, there were about 2.3 workers per pension; now that ratio will fall to 1.9. The sustainability of the pension system is being stressed. Turkey will overcome this by creating employment and growing. In particular, industrial growth has helped address the issue. We need to advance this further.”
For information on the retirement application process, we recommend reviewing the relevant guide: https://www.ssk.biz.tr/emeklilik-basvurusu/
EYT Backlogs to Be Resolved by May at the Latest
According to the Minister, there is no significant backlog in EYT processing. SGK is handling the consolidation of service records for EYT applicants. Files marked as “pending” are being evaluated and answered in due course. Pending files are expected to receive responses by May at the latest. The total number of processed cases is approaching one million, while total applications are roughly 1.7 million. Some applications lack sufficient contribution days or fail to meet other requirements; those conditions are currently being reviewed and will be completed soon. Responses are being issued quickly.
Will the Minimum Wage Receive Another Increase?
An unexpected increase to the minimum wage was applied this year, resulting in the highest real wage in the Republic’s history when measured against the dollar. The Minister commented:
“Is 8,500 lira a high amount? Not necessarily. We set it so it does not fall below that level. When you raise the minimum wage substantially, say by 50 percent, employees earning above the minimum also expect similar raises from their employers. The minimum wage has a regulatory effect on other wages. We will evaluate this again in July. I am not providing a figure right now. We know the President has not turned these matters into campaign promises. Minimum wage is usually adjusted once a year, but due to inflation we adjusted it semiannually. We should assess the real impact of 8,500 lira in July.”
Retirees Earning Above 7,500 Lira
The Minister said the President has asked him to focus on retirees. He noted that they regularly adjust wages for public employees and retirees every six months and that a comprehensive adjustment covering all groups will be considered in July. The plan is to raise those below higher and to lift those already higher even further. Minister Vedat Bilgin also indicated there will be changes to the welfare share.
By differentiating the welfare share, pensions above 7,500 lira will also be adjusted. Minister Bilgin stated that nine million retirees receive 7,500 lira, while the total number of retirees is about 15 million. Retirees who receive their pension based on the 7,500 lira threshold will be given a welfare share payment.
Wage Increase for Public Sector Workers
As mentioned above, a wage increase for public sector workers is also on the agenda. The Minister commented on public-sector labor negotiations:
“Currently, collective bargaining involving over 700,000 public-sector workers is ongoing. We will make a proportional increase. There are proposals to raise wages for minimum-wage-related workers to 12,000 or 12,500 lira; that is their demand. Public employer unions conduct the collective bargaining. I represent the state in those talks. Talks are scheduled to continue today or tomorrow. We will finalize decisions together with the unions. Wage levels for public-sector employees are very important since the public sector leads the private sector. Public employees, meaning civil servants, are not negatively affected by this. With the welfare share we already gave public employees a roughly 30 percent increase. They also have scheduled raises in July, which we will reassess together with the welfare share. Civil servants’ work conditions and social circumstances differ; various elements affect their daily wages.”