Turkish Workers Lose ₺1.3 Trillion to Inflation and Taxes

Turkey’s working class has suffered a staggering ₺1.3 trillion ($39 billion) loss in wages over the first nine months of 2025 due to inflation and rising taxes, according to a new report from the DİSK-AR Research Center. The study warns that real wages have eroded by an average of 41%, with the minimum wage losing ₺64,000 in purchasing power since January.

Wage Erosion Deepens Amid Surging Prices

The October 2025 “Wage Loss Monitoring Report” by the Confederation of Progressive Trade Unions (DİSK-AR) paints a grim picture of shrinking paychecks and growing inequality. The report estimates that Turkey’s 17 million registered workers collectively lost ₺1.328 trillion in the first nine months of the year.

Of that total, ₺789 billion stemmed from inflation-related erosion, while ₺539 billion came from income and stamp tax deductions. “Inflation has turned into a suction pump that drains the poor and feeds the rich,” the report said, accusing the government’s economic policy of transferring wealth from workers to elites.

September: 41% of Wages ‘Vaporized’

According to the data, in September 2025 alone, the average worker lost ₺12,767, meaning that nearly 41% of monthly income disappeared through inflation, taxes, and social security cuts.

The average worker salary, which stood at around ₺79,000 earlier in the year, saw its real value slashed almost in half, while the minimum wage—₺22,105 net in January—fell to ₺16,483 in real terms by September, reflecting a cumulative loss of ₺64,652.

DİSK-AR noted that the lack of a mid-year adjustment to the minimum wage deepened the losses, triggering ripple effects throughout the entire economy.

Higher Earners Lose More in Real Terms

The report also found that wage erosion increases with income level:

• Workers earning ₺39,000 gross took home ₺23,000 net, losing ₺16,000.

• Those earning ₺52,000 gross were left with ₺27,000, losing ₺24,800.

• Employees making ₺78,000 gross ended up with ₺38,900, losing ₺39,000—a 50% reduction in real value.

On average, workers across all brackets lost around 40% of their real income between January and September.

‘Inflation Is a Wealth Transfer Mechanism’

The DİSK-AR report emphasizes that the current fiscal framework has exacerbated income inequality.

“Inflation is a pump that impoverishes workers while channeling resources to the wealthy,” the report states. “An unfair tax system and suppressed wage policies are deepening inequality.”

The research center argues that because tax brackets have not been adjusted in line with inflation, millions of workers have been pushed into higher tax categories, accelerating the loss of disposable income.

Inequality and Poverty on the Rise

DİSK-AR accused the government of intentionally suppressing purchasing power through its economic program, which prioritizes disinflation over wage growth.

“By letting inflation eat away at wages while maintaining regressive taxes, the government is effectively making workers pay for its stabilization policy,” the report concludes.

The study warns that official inflation data likely understate real price increases, meaning actual wage losses could be even higher than reported.

Growing Social Divide

Economists say the findings underscore a growing class divide in Turkey’s economy. While profits in certain sectors continue to rise, stagnant wages and heavy taxation have left much of the workforce struggling with basic living costs.

With inflation still hovering above 30% and further fiscal tightening expected, analysts warn that Turkey’s wage crisis could fuel deeper social unrest and weaken domestic consumption going into 2026.