Rising Inflation Erodes Wages in Türkiye: Experts Warn July Hike May Not Offset Losses

The surge in inflation during the first four months of 2024 has significantly weakened the purchasing power of wage earners in Türkiye. Data from the Turkish Statistical Institute (TÜİK) shows 13.36% inflation between January and April, which has eroded real incomes across all salary groups, including minimum wage earners, civil servants, retirees, and private sector employees.

Economic experts now caution that the mid-year salary adjustment expected in July may fall short of fully compensating for these losses, especially if calculated using disputed official figures.

Minimum Wage Loses Nearly 3,000 TL in Value

According to figures reported by Ekonomim, the net minimum wage, set at 22,194 TL in January, has lost 2,955 TL in purchasing power, dropping its real value to around 19,148 TL due to cumulative price increases.

Likewise, the lowest civil servant salary, including family assistance, has declined in real terms from 43,698 TL to 37,860 TL, amounting to a 5,838 TL loss. Civil servant retirees also saw a 2,623 TL erosion in their monthly pension, pushing real incomes below 17,000 TL.

SSK and Bağ-Kur Retirees Also Hit by Inflation

Retirees under SSK and Bağ-Kur, whose minimum pension was 14,469 TL, experienced a 1,935 TL loss, bringing their real income down to 12,534 TL in four months. For civil servants earning an average of 51,000 TL, the purchasing power loss was calculated at 6,813 TL.

Private Sector Employees Struggle Against Rising Costs

The impact isn’t limited to public employees. A private sector worker with a monthly salary of 40,000 TL has seen their real income drop by 5,344 TL, reducing their effective salary below 34,700 TL.

Independent Data Paints a Darker Picture

The Inflation Research Group (ENAG), which operates independently of state institutions, estimates a much higher inflation rate—21.41% for the same period. Based on ENAG’s data:

• The minimum wage lost 4,733 TL

• The lowest civil servant salary dropped by 9,355 TL

• The average public employee lost 10,919 TL

• Even MPs earning 196,000 TL monthly saw a real loss approaching 42,000 TL

These figures suggest that the real economic strain on wage earners may be far greater than official data implies.

July Pay Hike Might Not Close the Gap

While the government is expected to announce mid-year pay raises in July, economists argue that using TÜİK’s controversial inflation rates for the calculations may result in insufficient compensation.

With inflation projected to continue rising in May and June, many suggest that long-term economic reforms, rather than temporary social assistance, are essential to protect citizens’ income and restore real purchasing power.

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