Turkey’s Wage Erosion Surges as Workers Lose 2.1 Trillion TL

The Research Center of the Confederation of Progressive Trade Unions (DİSK-AR) released its December 2025 Wage Loss Monitoring Report, revealing a stark picture of how inflation and rising tax burdens have impacted workers’ incomes throughout the year. According to the report, workers insured under the Social Security Institution (SGK) lost a combined ₺2 trillion 116 billion in the first 11 months of 2025 due to inflation and direct taxes.

The findings show that these losses stretch across all income groups, with average workers, minimum wage earners, and those making multiples of the minimum wage experiencing significant erosion in purchasing power. DİSK-AR highlights that the absence of a mid-year wage adjustment and the sharp rise in tax deductions were major contributors to the deepening financial strain.

Average Workers Lost ₺124,835 in 11 Months

Between January and November 2025, the cumulative wage loss for the average worker reached ₺124,835. Of this amount, ₺70,089 was attributed directly to inflation, while ₺54,746 resulted from income and stamp taxes.

In November alone, a single worker lost ₺18,690, driven by a steep rise in tax deductions. Income and stamp taxes totaled ₺7,395, compared to ₺3,000 at the beginning of the year. When social security and unemployment insurance premiums were included, total deductions climbed to ₺14,996. The inflation-driven loss for the same month was calculated at ₺11,295.

These figures illustrate how wage erosion intensified throughout 2025, with November marking one of the sharpest monthly declines in real earnings.

Minimum Wage Earners Lost ₺85,351 as Purchasing Power Collapsed

For minimum wage earners, the year was equally challenging. The 2025 gross minimum wage of ₺26,006, with no mid-year adjustment, eroded substantially once taxes, premiums, and inflation were accounted for. By the end of the year, the net take-home pay fell to ₺22,105, while its real purchasing power in November equated to just ₺15,531.

DİSK-AR calculated total losses for minimum wage earners at ₺85,351 over the first 11 months. In November alone, minimum wage workers faced a total monthly loss of ₺10,475, with ₺6,574 of that attributed solely to inflation. As the report notes, by late 2025, “nearly one-third of the minimum wage evaporated.”

Higher Earners Suffer Even Bigger Losses

The report also analyzed wage erosion for workers earning 1.5x, 2x, 2.5x, and 3x the minimum wage, underscoring how insufficient tax bracket adjustments amplified losses for middle- and upper-income workers.

Key findings include:

• Workers earning 1.5x the minimum wage lost ₺18,965 in November and ₺150,495 cumulatively.

• Workers earning 2x the minimum wage lost ₺26,369 in November, with annual losses reaching ₺220,305.

• Those earning 2.5x the minimum wage saw losses of ₺33,772 in November and ₺290,495 over 11 months.

• Workers earning 3x the minimum wage suffered ₺41,176 in November alone, with annual losses totaling ₺360,873.

DİSK-AR emphasized that the failure to adjust tax brackets in line with inflation forced more workers into higher tax tiers, significantly increasing their total deductions. This disproportionately affected middle-income earners.

Half of Workers’ Wages Were Eroded by Inflation and Deductions

The report’s most striking finding is that more than half of an average worker’s income effectively disappeared in 2025 due to inflation, taxes, and mandatory deductions. In November, the net real income of an average worker stood at ₺24,759, while total losses reached 52% of their monthly wage.

DİSK-AR described inflation as “a pump draining the income of the working class and transferring it upward,” adding that the current tax structure “deepens income inequality and increases the burden on wage earners.”

The report concludes that income disparities in Turkey are widening rapidly and that urgent economic policy reforms are needed to protect workers’ livelihoods.

DİSK Calls for Tax Justice and Wage Protection Measures

In response to the findings, DİSK-AR reiterated its call for structural reforms to prevent further wage erosion. The recommendations include:

• Updating the minimum wage at least twice a year,

• Adjusting tax brackets in parallel with inflation,

• Expanding income tax exemptions,

• Reducing SGK premiums for workers.

DİSK argues that these measures are essential to restoring purchasing power and ensuring a fair economic structure that does not disproportionately burden workers.