The minimum wage has been determined as 2020 lira ($381) for the new year across Turkey. The Minimum Wage Determination Commission members unanimously accepted the hotly-debated amount.
This means, the commission made a 26 percent increase in the minimum wage with a total of 417 Turkish Lira ($78).
Decision was made at during the commission’s latest meeting, during which its members gathered to determine both, the minimum wage, and the Minimum Living Allowance (AGI) amounts.
The new minimum wage affects around 7 million workers.
Selçuk: Minimum Wage Increased by 26%
Family, Labor and Social Service Minister Zehra Zümrüt Selçuk made a speech following completion of the meeting.
Selçuk said that as of Jun 1, the gross wage is determined as 2558 lira, while the net pay is determined as 2020.
“A total of 26 percent increase was made compared to the last year. As we said in the past, we kept our word such as ‘we would not crunch our workers to inflation.’ This decision was made unanimously. We validated the vote three times.”
She added: “Minimum wage for those who are married and has three children to be 2155.”
Confederation of Turkish Trade Unions (Turk-Is) Chairman , Ergün Atalay, said that “we cannot say it is perfect, but it is acceptable.” He further thanked those who worked on determining the new minimum wage. “I hope we managed to satisfy 70-80 percent of workers,” Atalay added.
What TUIK had proposed?
Sharing the livelihood expenses with the commission, Turkish Statistical Institute (TUIK) proposed the minimum wage rate as 2213,4o lira ($417) for hard labour and 1978,80 lira ($373) for mild labour.
Amounts which are determined by TUIK is a reference to outline the wage proposal given to workers and employers.
What workers, employers requested?
In the determination of the minimum wage, Turk-Is generally refer to the livelihood conditions. They were requesting more than 2000 lira minimum wage before the commission’s meeting.
Confederation of Turkish Trade Unions (TISK) references target inflation, investments, competitiveness, productivity, and unemployment struggles. TISK has additionally requested the abolishment of 2 percent of employer share in the unemployment insurance.
Meanwhile, employers requested an increase of Social Security Foundation (SGK) support from 5 percent to 6 percent. Moreover, they called on raising this support to 7 percent in the workplaces, where a labour contract is signed.
Worker attends the commission meeting for the first time
For the first time a security staff from Yalova University attended the commission’s meeting, representing workers. The worker is also a member of the Security-Work Union. She was one of the five members of Turk-Is at the commission during the determination of the minimum wage.
What is minimum wage?
In Turkey, minimum monthly wage refers to national minimum wage, which is fixed at an hourly, weekly, or monthly rate, and is enforced by law (the government).
The national minimum wage usually applies to all employees, or at least to a large majority of employees in the country.
More than one third of Turkey’s 30 million-strong labour force is paid the minimum wage. Gross wages are reported.
This page provides the latest reported value for – Turkey Minimum Monthly Wage – plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.
Turkey’s Gross Minimum Monthly Wage – actual data, historical chart and calendar of releases – was last updated in December 2018.
Minimum Living Allowance amounts (AGI) for 2019
Allowance amounts (AGI) for 2019.
AGI amounts which to be reflected to wages as follows;
If married and has non- worker spouse AGI to be 230,22 lira ($43)
If married and has non-worker spouse with a child the AGI to be 259.00 lira ($48)
If married and has non-worker spouse with 2 children the AGI to be 287.78 lira ($54)
If married and has non-worker spouse with 3 children the AGI to be 326.15 lira ($61)
Minimum wage workers receive additional Minimum Living Allowance over their salaries monthly.
Before the raise, the minimum wage was 1603 lira ($302) in Turkey.
The amount of minimum wage has been a hot debate in society as Turkish Lira has plunged through the year and high inflation has hit the prices. Turkey has been struggling to overcome high inflation, high unemployment and high current deficit simultaneously particularly in 2018.
Many economists and experts believe that Turkey will knock the door of International Monetary Fund (IMF) and reach a bailout deal after the local elections in March 2019.