New base pension hike in Türkiye raises concerns

Minister of Labor and Social Security, Vedat Isikhan, announced that the minimum pension for retirees under the Social Security Institution (SSK) and the Social Security Organization for Artisans and the Self-Employed (Bag-Kur) will be increased by 15.75%, raising the base pension to ₺14,469.

While the increase is notable, questions remain about whether it is sufficient to address economic challenges.

Most of the retirees receive the lowest pension rate, making the base hike particularly important.

The adjustment still necessitates legal approval, as it must be included in an omnibus bill expected to be reviewed and passed by the Turkish Parliament. 

Reactions

Currently, 3.7 million retirees benefit from the updated pension minimum, but concerns persist about the long-term sustainability of such adjustments.

Pensioners remain vocal about their struggles but lack a unified organization to advocate effectively for broader reforms, exacerbating frustrations over perceived inequalities in the system.

The announced wage increases also drew criticism from labor unions. The Confederation of Public Employees Trade Unions (KESK) stated: “The inflation figures announced through TUIK have played a central role in impoverishing us further each year.”

KESK highlighted that rising costs since the new year have significantly eroded workers’ salaries. Co-Chair Ayfer Koçak remarked: “Virtual figures disconnected from real-life price increases are further lowered, especially during salary adjustment periods.”

Context and trends

The minimum pension scheme was first introduced in 2019 at ₺1,000, affecting approximately 67,000 individuals at the time.

Since then, the pension has undergone several hikes, increasing to 7,500 TL by 2023 and now reaching ₺14,469 ($410).

Despite these increases, economic pressures and rising inflation continue to outpace wage growth, leaving many retirees feeling financially strained.

New raise falls below hunger threshold

The newly announced wage increase still remains below the ₺21,000 hunger threshold.

Pensioners argue their concerns go beyond the amount they receive. The ongoing disconnect between contribution periods and pension benefits remains a pressing issue for Türkiye’s elderly.

Workers who contributed higher premiums over longer periods often received pensions comparable to those with fewer contributions, raising fairness concerns and diminishing trust in the social security system.

Despite the recent increase, economic realities suggest it won’t significantly enhance retirees’ purchasing power. With inflation still high, pension hikes often feel like a response to rising costs rather than a solution to improving financial security.

Experts warn that unless inflation is addressed, pension adjustments will continue to fall short of covering living expenses.

A comprehensive overhaul of the pension system may be required to tackle these disparities and restore confidence, though such reforms would come with significant financial implications.

Outcomes

Top experts from Türkiye’s leading polling firms believe that pension increases have direct political implications. Following the recent elections, OPTIMAR’s Hilmi Dasdemir remarked: “We are seeing a shift where elections can be analyzed through the lens of retirees. They had a significant impact. Low-income groups are also in a similar situation, but the main issue was retirees’ unmet economic expectations.”

Hakan Bayrakci (SONAR) added: “Local elections act as a message to the government. While the economy was the primary factor, retirees played a prominent role.”

Thus, retirees’ responses are often viewed as subtle reactions rather than outright protests.