Turkey raises the minimum wage by 54.5% of January 1, 2023 announced President Recep Tayyip Erdogan on Thursday, in bid to shield citizens from the negative effects of economic inflation.
the net less pay for per person will be 8,500 TL (455 USD) per month, up From 5,500 TL per month, Erdogan said in a televised address from the capital, Ankara. the increase also It represents the average annual height of over 70% is added.
It was Turkish families struggling with the highest economic inflation in more of two decades. The annual inflation rate has decreased below 85% last 24-month after touchingyear high in October. it is expected that decline sharply in The next period as a result of Al-Qaeda effect Low global energy prices.
The increase of 55% is the third increase in the past year. The state enacted a 50% increase in the beginning of 2022, which raised the minimum wage to 4,250 TL. Then it was decided to raise the minimum wage in Country again increased by 30% in the middle of the year in An attempt to protect families from rising inflation. effective as of July 1, 2022, prof new It was the minimum wage set As TL 5,500 per month.
the government Will consider another raise to the minimum wage in the event of Erdogan said the developments were “unexpected”. he is added He expects inflation to slow down to 30% in the first half of 2023.
Erdogan stressed earlier on the intensive efforts he said government He vowed to eliminate causes otherwise cost He increases leading to higher rates of inflation.
the government Low interest rates were introduced to boost exports, production, investment and innovation new functions as part of economic program with the ultimate Aim of Reduce inflation by turning the country around current account deficit into surplus.
Turkey is almost completely dependent on imports to cover its energy needs, making it particularly vulnerable to it rising Costs that rose significantly after Russia invasion of Ukraine.
last month downtown bank Covered up The facilitation cycle that lowered its standard policy rate by 5 percent points since August to 9% from 14%, in Line with Erdogan calls for Stimulus. at its meeting on Thursday, the lender also Interest rates were kept unchanged.
Erdogan says A high degree cause Inflation had been called for single-digit rates year-End. He said the government’s new economic model expected to yield results in the new year.
the government Many relief measures have been introduced to help Mitigating the repercussions of inflation, including the cap on rent increase, reduced taxes on Large utility bills and housing project that was recently unveiled for Low-income families.
Minister of Treasury and Finance Noureddine Al-Nabati also comment on minimum wage decisionsaying he wished new The minimum wage is beneficial for all stakeholders, especially our workers.”
Al-Nabati mentioned that improving the purchase power and luxury levels of employees during the working period of The governments of the ruling Justice and Development Party one of Their priorities, saying: “While we consider your well-being of more of 85 million citizens in Determine the correct minimum wage in 2023,” hmm also ensure It will maintain production to maximize Turkish economy potential.
Particularly emphasized that the increase in The minimum wage corresponds to a higher level than in 2023 yearThe end of inflation ratewhich they imagined to be 24.9% within framework of medium-term program.
the government He sees inflation drop to 65% by the end of the year and 24.9% in the end of 2023.
