Ankara Milliyet – Cabinet members, who held their last meeting on October 31, met in Beştepe today. The latest developments in the economy and new steps taken within the scope of combating inflation will be evaluated in the Council of Ministers, and efforts made to improve pensions will also be reviewed.
On the other hand, the additional regulation of the 5,000-lira retirement bonus, which concerns millions of people, is expected to be put on the agenda at the Cabinet meeting. From November 11 to 14, 5,000 Turkish liras were disbursed to more than 12 million unemployed retirees. Erdogan had instructed additional regulations for citizens who are members of the Farmer Registration System (KKS) and cannot receive retirement benefits.
The Cabinet will also discuss Erdogan’s diplomatic initiatives to stop the bloody Israeli attacks on Gaza. While Erdogan continues his efforts to ensure an urgent ceasefire in his meetings with world leaders and during his visits abroad, new steps to be taken in this context will also be discussed. The latest situation regarding counter-terrorism operations will also be discussed during the meeting.
Inflation expectations have changed! A new number for the lowest retirement salary
According to the market participant survey conducted by the Central Bank of the Republic of Turkey, inflation expectations at the end of the year were 67.23 percent, while current interest rate expectations at the end of the month were 37.80 percent. So what is the minimum pension in this case? Economist Muhammad Bayram explained.
In his statement, Perm used the following phrases: “According to a survey of market participants conducted by the Central Bank, the inflation rate reached about 68 percent. Currently, the forecast poll has dropped to 67.23. The Central Bank’s inflation forecast at the end of the year is about 65 percent.
In the future process of setting the minimum wage and other wages, inflation targeting will be adopted. For now, there will be a wage increase in the form of the inflation differential plus the welfare share. There has been a decline in inflation in recent months, but we believe there will be a serious rise in natural gas and electricity inflation in November and December. We estimate that inflation at the end of the year will be close to 70 percent.
Last 2 remaining inflation data at the end of the year! How much will the salary increases be?
Currently, the 4-month inflation data is around 29.41 percent. There are two months of data left, and if a 4 percent monthly inflation rate is taken here, there would be a six-month inflation difference of about 38-39 percent.
Retirees from SSK and Bağkur will receive an inflation difference of 38 to 39 percent. Retired civil servants will also receive a raise based on the collective agreement. Overall, we expect an increase of approximately 50 percent for all retirees.
Will there be an additional welfare quota for inflation?
We expect the difference in inflation to range between 38 and 40 percent. There is a 9 percent difference for civil servants due to the collective agreement. This corresponds to 47 percent. I think there will be about a 50 percent increase with the welfare share.
In recent years, SSK and Bağkur retirees and civil servants have received the same bonuses. That’s why we believe there will be an increase of approximately 50 percent for all retirees.
What will be the lowest retirement salary?
The minimum pension is currently 7,500 TL. It was increased from 5,500 TL to 7,500 TL in April, but there was no increase in July. We expect a significant increase from the beginning of the year.
In previous periods, the lowest pension was equivalent to 88 percent of the minimum wage. This percentage decreased to 66 percent. If the minimum wage level rises to about 16 thousand TL, the difference between the lowest pension and the pension will widen. Currently, we expect the minimum pension to be around 12,250-12,500 TL.
While doing so, we expect the minimum pension to be fixed at the root salary. We hope that in the next relative increase, the minimum pension will be increased at the highest rate. For this reason, the minimum pension should be equal to the basic salary.
(Tags for translation) Presidential Cabinet