Gizem Öztok Altınsaç, Chief Economist of the Turkish Industrialists’ and Businessmen’s Association (TÜSİAD), said she thinks there will be a hefty increase in the minimum wage.
One month is left until the 2022 minimum wage negotiations. The minimum wage determination commission will meet at the beginning of December 2021 and will determine the minimum wage for 2022 towards the end of the month.
The minimum wage is more important than ever this year, with astronomical increases in food inflation and consecutive currency shocks.
Turkey is one of the countries with the lowest minimum wage among the European Union countries. It is also the country with the highest rate of minimum wage workers.
According to the data of the Social Security Institution (SGK) in Turkey, more than half of 20 million employees receive minimum wage. In other words, the ‘minimum’ wage has become the ‘average’ wage.
‘There may be a hike like in 2016’
Özyeğin University lecturer Gizem Öztok Altınsaç stated that she expects a high increase in the minimum wage, just as in 2016.
Speaking to Bloomberg HT, Altınsaç said: “The minimum wage hike will have some effects on inflation. I think a hefty minimum wage hike is on its way. I believe it will be around 25 percent, like the one made in 2016, maybe even more. It is not right to speculate before the minimum wage hike is clear. However, the minimum wage hike is being discussed often in the market, so companies are adjusting themselves accordingly.”
Translation: Cem Cetinguc