ANKARA, Dec. 10 (Xinhua) — A tripartite commission of workers, employers, and government representatives began negotiations in Ankara on Tuesday to set Türkiye’s 2025 minimum wage.
The discussions, set to conclude by Dec. 31, will impact approximately 9 million workers amid the country’s ongoing economic challenges.
The current minimum wage of 17,002 lira (around 488 U.S. dollars) per month has been criticized by worker unions as insufficient against the backdrop of persistent high inflation. Official data shows annual inflation at 47 percent in November, lower than a peak of 75.5 percent in May but still well above sustainable levels.
Market expectations center on a potential 25 percent wage increase, though labor unions and workers demand more substantial adjustments to offset rising living costs.
Labor unions, such as TURK-IS, have underscored the urgent need for meaningful wage adjustments, noting the current minimum wage falls 2,828 lira below the hunger threshold of 19,830 lira required to support a four-person household.
Economists warn of potential trade-offs associated with wage hikes. A 25-percent increase could provide immediate relief but risks adding between 1.5 and 5 percentage points to annual inflation, according to preliminary estimates.
Ali Cufadar of Ankara’s Economic Policy Research Foundation cautioned that raises exceeding 25 percent could undermine price stability and jeopardize the government’s 2025 inflation target of 21 percent.
The International Monetary Fund has recommended targeted financial assistance for low-income households instead of broad wage increases, highlighting the complexity of addressing economic distress.
