30% minimum wage increase disappoints millions in Türkiye
File photo shows workers in a textile factory operating sewing machines and assembling garments, in Türkiye. (AA Photo)
The minimum wage for 2025, decided during an urgent meeting hosted by the Turkish labor ministry, has disappointed millions of workers in Türkiye, as the 30% increase falls short of the annual inflation rate of 47.09%.
Vedat Isikhan, the Turkish minister of labor and social security, announced late on Tuesday that the minimum wage determination commission had set the gross minimum wage for 2025 at ₺22,104 ($626.7) per month, equating to ₺265,248 annually.
He also stated that government support for businesses would increase from ₺700 to ₺1,000 per worker.
2025 yılı asgari ücret miktarı %30 artışla net 22.104 Türk Lirası olarak belirlenmiştir.
Tüm çalışanlarımıza, ülkemize ve milletimize hayırlı olsun. pic.twitter.com/B2GJXcxnfk
— Prof. Dr. Vedat Işıkhan (@isikhanvedat) December 24, 2024
For employers, the total cost per worker is ₺23,502.94, which includes the gross minimum wage, a social security premium of ₺3,100.39, and an unemployment insurance contribution of ₺400.05.
| Period | 2024 | 2025 |
| Monthly (Net) | ₺17,002 ($482.05) | ₺22,104 ($626.70) |
| Annual (Net) | ₺204,024 | ₺265,248 |
| Monthly (Gross) | ₺20,002 | ₺23,502 |
| Annual (Gross) | ₺240,024 | ₺282,024 |
President Recep Tayyip Erdogan affirmed the decision in a post on X, stating, “In 2025, the minimum wage will be applied as ₺22,104 net with an increase of 30%. May it be beneficial to our country and nation.”
2025 yılında asgari ücret, %30 artışla net 22.104 TL olarak uygulanacaktır. Ülkemize ve milletimize hayırlı olsun.
— Recep Tayyip Erdoğan (@RTErdogan) December 24, 2024
Unexpected meeting at late hours
Earlier on Tuesday, Isikhan had stated that the final meeting of the minimum wage determination commission would take place on Dec. 26 or 27. However, the commission unexpectedly convened on Tuesday night without the participation of the Confederation of Turkish Trade Unions (TURK-IS).
In a written statement before the meeting, TURK-IS reiterated its proposal for a 74% increase during the third meeting on Dec. 19 and explained its decision not to attend further negotiations if a lower offer was presented.
“TÜRK-İŞ ASGARİ ÜCRET TESPİT KOMİSYONU KARAR TOPLANTISINA KATILMAYACAK”
TÜRK-İŞ Yönetim Kurulu, Asgari Ücret çalışmaları konusundaki gelişmeleri değerlendirerek aşağıdaki açıklamayı yapmıştır:
“Asgari ücret, işçilerin aileleriyle birlikte insana yakışır geçim şartlarını asgari… pic.twitter.com/7oYUCq0YUc
— TÜRK-İŞ (@turkiskonf) December 24, 2024
“The Minimum Wage Determination Commission has been called to a meeting on the evening of Dec. 24, 2024, to make a decision. The TURK-IS Executive Board has decided not to attend the meeting, as no prior information was provided regarding the minimum wage proposal,” Turk-Is stated.
Disappointing decision sparks debates
As the announced minimum wage remains below the annual inflation rate, recorded at 47.09% in November by the Turkish Statistical Institute (TurkStat), it has drawn heavy criticism from workers and the main opposition party.
Ozgur Ozel, chairman of the Republican People’s Party (CHP), criticized the decision, condemning the final meeting as “hastily organized.”
“I commend the TURK-IS administration for not attending the hastily organized meeting and invite the working class to harness the power derived from their labor,” Ozel remarked.
Bugün alelacele gerçekleştirilen Komisyon toplantısıyla belirlenen 22.104 TL'lik asgari ücret, Tayyip Erdoğan'ın bu ülkenin gerçeklerinden koptuğunun son emaresidir.
Günlerdir Suriye’de zafer yaşattık diyenler emekçiye hezimeti yaşatmış sefalet ücretini dayatmışlardır.
Suriye…
— Özgür Özel (@eczozgurozel) December 24, 2024
Meanwhile, the CHP has called an extraordinary meeting on Wednesday to discuss its stance on the 2025 minimum wage. The CHP Central Executive Committee will convene at 10:30 a.m. local time at party headquarters to outline its roadmap for addressing the issue.
‘New minimum wage solidifies interest cuts’
Hakan Kara, a former chief economist at the Central Bank of the Republic of Türkiye (CBRT) and an economics professor, interpreted the decision as a precursor to an anticipated interest rate cut by the CBRT in December.
Asgari ücret artışının %30 ile sınırlı kalması Merkez Bankasının faiz indirimine başlamasını kesinleştirdi. Yarın Borsa endeksi artacak tahvil faizleri düşecektir. https://t.co/RwVvaedKwK
— Hakan Kara (@ali_hakan_kara) December 24, 2024
“Limiting the minimum wage increase to 30% has solidified the central bank’s decision to start cutting interest rates. Tomorrow, the stock market index is expected to rise, and bond yields are likely to decline,” Kara stated.
Meanwhile, amid the minimum wage debates, the U.S. dollar rose by 1.41% against the Turkish lira, reaching 35.2750 at 6 a.m. GMT. The euro-to-lira exchange rate also climbed by 1.48%, reaching 36.7019 at the same time.
Türkiye’s stock exchange, Borsa Istanbul’s BIST 100 index—representing the 100 largest and most actively traded companies—opened the day with a 1.76% surge, reaching 9,846.39.
Trade Ministry warns sellers against price hikes
The Turkish Trade Ministry issued a written statement on Wednesday, warning all goods and service providers against attempting unjustified price hikes.
“At the beginning of 2025, the revaluation rate of 43.93% will be applied to all inspection penalties,” the ministry stated, adding that the increased minimum wages are scheduled to be paid at the end of January 2025.
The ministry emphasized that labor costs constitute only a portion of total expenses, urging sellers to refrain from using minimum wage increases as a pretext for proportional price hikes. Strict inspections will be carried out by teams from the Ministry of Trade, the Ministry of Agriculture and Forestry, and other relevant agencies to curb such exploitative practices.
