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Turkey to raise minimum wage by 30% in 2025
Turkish President Recep Tayyip Erdogan announced on Tuesday, December 24, that the net minimum wage in his country would be raised to 22,104 Turkish liras (equivalent to $630.36) per month during the coming year, a 30% increase over its level in the year that will end in a week.
This comes amid expectations from economists that this increase in the minimum wage will cause inflation to rise in the coming months.
The Turkish president's decision affects about nine million workers in the country, and is considered a standard for increasing salaries in the private sector, according to Reuters.
Reuters calculations, which are based on studies conducted by the Turkish Central Bank, expect that the 25% wage increase will raise annual inflation by between 1.5 and 5%.
The inflation rate in Turkey fell to 47.09% during November from an annual high of 75% in May, due to several factors, most notably the tightening of monetary and fiscal policies. However, the figures improved more slowly than previously expected, according to the Turkish central bank.
