Turkish Workers Lose Trillions as Inflation and Taxes Erode Wages in 2025

A newly released report by DİSK-AR, the research arm of the Confederation of Progressive Trade Unions of Turkey (DİSK), paints a stark picture of how deeply inflation and tax policies affected workers’ incomes in 2025. Titled the “2025 Wage Loss Monitoring Report,” the study estimates that nearly 17 million workers registered under the Social Security Institution (SGK) collectively lost more than 2.5 trillion Turkish lira in real income over the past year.

The findings underline a severe decline in purchasing power, showing that wage increases failed to keep pace with rising prices and mounting tax deductions. According to the report, 2025 closed as a year of substantial welfare loss for wage earners, with inflation, income tax, and stamp duty steadily eroding earnings throughout the year.

Inflation and Tax Pressure Deepen the Wage Crisis

DİSK-AR’s analysis demonstrates that the impact on workers was not limited to headline inflation alone. While price increases reduced the real value of wages, income tax brackets, and mandatory deductions further compounded losses, leaving workers with significantly less disposable income.

The report emphasizes that these mechanisms worked simultaneously. As nominal wages increased, many workers were pushed into higher tax brackets, increasing deductions without a corresponding improvement in real purchasing power. This dual pressure meant that even workers who appeared to earn more on paper were often worse off in practice.

Average Annual Loss Per Worker Reaches Striking Levels

One of the most striking conclusions of the report concerns the average annual loss per worker. Based solely on SGK-covered employees, DİSK-AR calculated that the cumulative loss per worker in 2025 reached 147,292 TL, including inflation, income tax, and other deductions.

Monthly data illustrate how sharply the burden intensified over the year. In January 2025, the inflation-driven erosion of wages amounted to 1,910 TL per worker. By December, this figure had surged to 11,732 TL, reflecting the accelerating pace of price increases. When tax deductions are included, the total monthly loss in December alone reached 19,058 TL, highlighting that year-end conditions were especially punishing for employees.

Aggregate Loss Exceeds 2.5 Trillion TL

When individual losses are aggregated across the workforce, the scale becomes even more dramatic. DİSK-AR estimates that the total economic burden borne by approximately 17 million workers reached levels comparable to those of major macroeconomic indicators.

The breakdown provided in the report shows that inflation accounted for more than 1.4 trillion TL of the total loss, underscoring the dominant role of rising prices in undermining real wages. At the same time, taxes and other mandatory deductions added another 1.054 trillion TL to the burden. Combined, these factors pushed the minimum total loss to at least 2.501 trillion TL.

These figures suggest that a significant share of the economic adjustment in 2025 was effectively borne by wage earners, rather than being evenly distributed across society.

Minimum Wage Earners Hit Especially Hard

The report places particular emphasis on minimum wage workers, who make up a large proportion of Turkey’s labor force. Citing coverage by Dünya Gazetesi, DİSK-AR notes that this group experienced a sharper and more visible decline in living standards.

Despite official data showing annual inflation of 30.89% in 2025, the real value of the net minimum wage fell substantially. By December, the inflation-adjusted net minimum wage dropped to 15,277 TL, indicating a significant loss of purchasing power compared to the beginning of the year.

Over the full 12-month period, a minimum wage worker lost 96,080 TL due to the combined effects of inflation and tax deductions. The report highlights that for households already operating at the margins, this scale of loss translates directly into reduced consumption, rising debt, and increased economic insecurity.

Broader Implications for Labor and the Economy

Beyond the raw numbers, the report raises broader questions about wage-setting mechanisms, tax policy, and social protection. DİSK-AR argues that persistent real wage losses weaken domestic demand, which in turn can slow economic growth and deepen inequality.

The findings also point to structural issues within the tax system, particularly the way income tax thresholds interact with inflation. Without regular adjustments that reflect price dynamics, workers face what economists often describe as “bracket creep,” where higher taxes are paid even as real income stagnates or falls.

A Year Marked by Declining Purchasing Power

Overall, the 2025 Wage Loss Monitoring Report portrays a labor market under intense strain. With trillions of lira effectively transferred away from wage earners through inflation and taxation, the report suggests that restoring purchasing power will require more than nominal wage hikes.