While answering journalists’ questions after his visit to Uzbekistan, President Erdogan also made statements about the minimum wage and retirement bonus. “As you know, the issue of the minimum wage has its own timetable. We relieved our workers with a temporary increase, and now I believe we will bring workers and employers together and find the most logical solution,” Erdogan said. He said. So what is the strongest prediction for the minimum wage? Details here…
In his statement, economic expert Muhammad Bayram used the following phrases: “This wage affects not only the 7 million minimum wage workers, but all workers in the private sector. There was a 34 percent increase in the previous period.
Here’s the strongest prediction about the minimum wage!
We expect a significant increase. It is also necessary to take into account the employer here. In inflationary environments, the burden of inflation falls on the employer or employee. Without putting much effort into it here. Competition conditions in Europe should be taken into account. Recently, the minimum wage reached a record level of $450. As the dollar exchange rate rose, it fell to $400. We currently expect the new minimum wage level to exceed $500. The minimum wage is expected to be around 15 thousand 500.
Here, minimum wage earners and retirees are being crushed by inflation. As the minimum wage increases, other elements will also be affected. I expect the minimum wage to be 15,500 TL. The cost to the employer is important here, as the employer has a 14 percent insurance structure, and the employer participates at 15.5 percent and 2 percent. This is the opposite of light. There is a daily minimum wage support. This is not enough for employers. The purchasing power of employees can be increased.
With the tax bracket fixed, all wages up to the minimum wage were excluded. Currently, people are entering the early bracket and paying taxes early due to incorrect application of the exemption. If the regulation is changed to normal, the period to be entered after the third month will be entered after the sixth month. Salaries will increase.
The inflation rate in the past six months is expected to reach about 38 percent. Here, the level of 15 thousand 500 TL indexed to it will reflect an amount equal to the inflation differential. The market has already priced this in. Everyone wants higher prices. Here, the minimum wage is the minimum at which one can work.
Unemployment benefits will also increase. If there is a 30 percent increase, the unemployment benefit will reach 6,900 TL. If it is 40 percent, it will reach the level of 7450 Turkish liras.
If there is a 30 percent increase in the highest unemployment benefit, it will be 13 thousand 845 TL. If it becomes 40 percent, it will reach 14,910 Turkish liras.
The GSS premium will be 520 TL if there is a 30 percent increase, and it will increase to 562 TL if it increases by 40 percent. If there is an annual increase of 30 percent, it will be 6,277 Turkish liras, and if it is 40 percent, it will be 6,760 Turkish liras.
How much will the minimum wage increase?
I do not expect it to exceed 50 percent. 30-35 percent is a reasonable amount. Here we say 30-35 percent in terms of the employer’s consideration. 30-35% is a reasonable percentage, and more than that does not constitute a burden on the employer.
(Tags for translation)Minimum wage