Will there be an interim minimum wage increase in July? Expectations for a second raise in July 2025 continue!

Whether the minimum wage , currently set at 22,104 TL for 2025, will receive a second raise in July remains a matter of curiosity. Following the interim raise for civil servants and retirees, attention is now turning to whether there will be a new regulation regarding the minimum wage.

NO OFFICIAL STATEMENT ABOUT THE INTERIM PRICE INCREASE

Labor and Social Security Minister Vedat Işıkhan previously stated, "It's premature to discuss an interim minimum wage increase. We will make the necessary assessment when the time comes." Despite entering the last week of July, no official decision has yet been made on a raise. Last year, the minimum wage was not increased in the second half of 2024. Therefore, a similar policy is expected to continue in 2025.

INFLATION FIGURES AND PAST PRACTICES

The minimum wage was increased twice a year in 2022 and 2023.

In 2022, a 50 percent increase was implemented in January and a 30 percent increase in July.

In 2023, there was an increase of 54.66 percent in January and 34.04 percent in July.

However, starting in 2024, a single annual raise was implemented. This system will continue through 2025. As of January 1, 2025, the net minimum wage was set at 22,104 TL, and the gross minimum wage was set at 26,005 TL.

EMPLOYER PARTIES AND FIGHTING INFLATION

As part of the government's anti-inflation policy, it's been emphasized that minimum wage increases could impact price stability. Treasury and Finance Minister Mehmet Şimşek announced that inflation is targeted to fall to 20 percent by the end of the year. It's also noted that employers are hesitant about a second raise, and that economic difficulties persist in some sectors.

COST OF MINIMUM WAGE TO EMPLOYERS

The gross minimum wage determined for 2025 is 26,005 TL 50 kuruş.

This fee;

4,030 TL SSI employer premium,

520 TL is calculated as employer unemployment insurance premium.

Thus, the total cost of a net minimum wage employee for an employer exceeds 30,556 TL.

CURRENT SITUATION: PRICE INCREASE IS NOT ON THE AGENDA

There are no plans for the Minimum Wage Determination Commission to convene in the second half of the year. There are currently no signs of any new regulations from the government. Therefore, the possibility of a second minimum wage increase in 2025 is not currently on the agenda.

(LIBERTY)

Source: NEWS CENTER