Türkiye has announced a 30% increase in the national minimum wage, set to take effect on January 1, 2025. The new monthly net minimum wage will be 22,104 Turkish Liras ($628), up from the current 17,002 liras ($483).

Minimum wage support for employers has also been adjusted as part of the wage policy. The support amount provided per employee will increase from 700 liras to 1,000 liras.

Wage hike details

1. New minimum wage: 22,104 TL ($628)
2. Previous minimum wage: 17,002 TL ($483)
3. Percentage increase: 30%
4. Effective date: January 1, 2025
5. Employer support: Increased from 700 TL to 1,000 TL per worker

Comparison to inflation and union expectations

1. Annual inflation (as of November 2024): 47.09%
2. The wage increase is 17 percentage points below the current inflation rate.
3. The wage adjustment was based on expected inflation rather than current figures.
4. Labor unions had demanded a 74% increase, which would have set the wage at 29,583 TL ($840).
5. The Confederation of Turkish Trade Unions (Türk-İş) did not participate in the final wage-setting meeting.

Mid-year wage adjustment status

1. In 2024, Türkiye applied a 49% wage hike with a mid-year revision.
2. For 2025, no mid-year adjustment has been announced.

Government response to inflation concerns

1. Authorities issued warnings against unjustified price increases on essential goods.
2. Regulatory bodies will inspect businesses for potential pricing violations.
3. Penalties will be enforced to prevent artificial inflation.
4. Consumer protection remains a key focus of the post-wage-increase measures.

Overview

The 2025 minimum wage increase in Türkiye is part of a broader strategy to manage inflation, support wage earners, and maintain economic stability. While the increase does not fully keep pace with inflation, it reflects a calculated effort to align income policies with macroeconomic goals.