“Condemned to hunger”: the increase in the minimum wage in Türkiye, below inflation, arouses anger

When Turkish President Recep Tayyip Erdogan announced a 30 percent increase in the country's minimum wage in 2025 via social media, more than 40,000 people flooded the comments, many of whom criticized the announcement.

Starting next month, the minimum wage in the country will be 22,104 Turkish liras ($630.36), representing a 30 percent increase.

While supporters of the measure say it is the highest minimum wage in U.S. dollars in recent years, critics note it is well below the 2024 annual inflation rate.

We were screwed by the 44 percent [inflation]and now employers only have to pay us 30 percent? one of those who commented under Erdogan's post request.

You have already condemned people to hunger and misery, and now you sentence them to death.

Supporters say the hike aligns with the government's inflation target of 25 percent for 2025, suggesting it could help combat the country's persistent inflation problem, which was partly triggered by the president's historically unorthodox economic policies.

Looking at my monthly expenses, even basic necessities like food and rent consume most of my salary, said Meltem, an administrative assistant at a private university.

This 30 percent increase will not keep pace with the real inflation we experience in our daily lives.

The rise in rents highlights the inadequacies of the new minimum wage, especially since 42 percent of Turks earn just the minimum wage.

In Istanbul, the average monthly rent is $709in Ankara, it's $567 – both figures exceed or are close to the minimum wage.

The minimum wage is of course insufficient and, more importantly, in Turkey a very high percentage of people live on it, explains Tolga, a banker.

When the increase is too small, it simultaneously pushes large numbers of people into poverty.

The geographic disparity in cost of living adds another level of complexity to the problem.

The new minimum wage is very low for workers in Turkey, but I can't imagine how much harder it will be for people living in big cities, said Eda, an office worker at a government student hostel (KYK ).

“Invalid” decision

Workers' unions have spoken out strongly against raising the minimum wage below inflation. The Confederation of Turkish Trade Unions (Turk-Is) abstained from the final wage determination meeting, while the Confederation of Revolutionary Trade Unions (DISK) declared the decision invalid, criticizing the rush of the process and lack of representation workers.

The wage hike, which will affect around nine million workers, comes amid strict monetary and fiscal policies aimed at combating inflation.

Although inflation has fallen from its peak of 75 percent in May, the central bank acknowledges that progress has been slower than expected.

Economist Ibrahim Turhan warned that the implications of minimum wage decisions extend beyond employee salaries.

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Many of those working for minimum wage are employed in small family businesses and cottage industries, Turhan said.

Although raising the minimum wage is not a difficult thing, he warned that unrealistic increases could cause more harm than good by fueling further inflation.

A Reuters calculation suggests that even a 25 percent increase could raise annual inflation by 1.5 to 5 percentage points.

However, Turhan said the new salary level should allow workers to maintain in December 2025 the purchasing power they had in December 2024.

On Thursday, the Turkish Central Bank lowered its benchmark interest rate from 50 percent to 47.5 percent.

A relatively modest wage increase lowered inflation expectations for next year and allowed the central bank to begin its cycle of rate cuts, a senior Turkish official affiliated with the ruling party said.

This is a breakthrough in the fight against inflation as well as an economic policy that guarantees investor confidence in Turkish markets.

Asked about the difficulties Turkish citizens will endure with wages rising below inflation, the official acknowledged their difficulties.

We must swallow the bitter pill, he said, adding: There is no other solution.