'Condemned to hunger': Turkey's below-inflation minimum wage rise sparks 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 them critical of the announcement.

Starting next month, the minimum wage in the country will be 22,104 Turkish lira ($630.36), which amounts to a 30 percent increase.

While supporters of the move argue that it represents the highest minimum wage in US dollar terms in recent years, critics note that it falls well below the annual inflation rate for 2024.

“We were screwed by the 44 percent [inflation], and now employers only have to pay us 30 percent?” one of those commenting under Erdogan’s post asked.

“You’ve already condemned people to hunger and misery, and now you’re condemning them to death.”

Supporters claim 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 partially triggered by the president’s historic 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 won’t keep pace with the real inflation we experience in our daily lives.”

Rising rental costs underscore 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 $709, while in Ankara, it’s $567 - both figures exceed or are close to the minimum wage.

“Minimum wage is, of course, insufficient, and more importantly, there’s a very high percentage of people living on it in Turkey,” explained Tolga, a banker.

“When the increase is too low, it simultaneously drags so many people into poverty.”

The geographic disparity in living costs adds another layer of complexity to the issue.

“The new minimum wage is very low for workers across Turkey, but I can’t imagine how much more difficult it will be for people living in larger cities,” said Eda, an office worker at a government student hostel (KYK).

'Invalid' decision

Workers unions have come out strong against the below inflation minimum wage rise. 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”, criticising the rushed process and lack of worker representation.

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

Although inflation has declined from its May peak of 75 percent, 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.

“Many of those working for minimum wage are employed in small family businesses and tradesmen businesses,” Turhan said.

While “increasing the minimum wage is not a difficult thing,” he cautioned that unrealistic jumps could “cause more harm than good” by fuelling further inflation.

A Reuters calculation suggested that even a 25 percent increase could force annual inflation up by between 1.5 to 5 percentage points.

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

On Thursday, Turkey’s Central Bank cut 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 rate-cut cycle,” said one senior Turkish official affiliated with the ruling party.

“It’s a breakthrough in the fight against inflation as well as an economic policy that ensures investor confidence in Turkish markets.”

When asked about the hardship Turkish citizens will endure with a wage hike below inflation, the official acknowledged their struggles.

“We have to swallow the bitter pill,” he said, adding: “There is no other way around.”