Turkey Increases Minimum Wage by More than 50% for 2023
Turkey will raise its minimum wage by 54.5% starting January 1, 2023, President Recep Tayyip Erdogan announced on Thursday. The move is aimed at protecting citizens from the negative effects of inflation, which has reached its highest level in over two decades. The net minimum wage for single individuals will increase from TL 5,500 ($455) per month to TL 8,500 per month. This increase represents an average annual hike of over 70%. Turkish households have been struggling with high inflation, which dropped below 85% last month after reaching a 24-year high in October. It is expected to decline in the coming period due to the base effect and falling global energy prices. This is the third minimum wage hike in the past year, with the country enacting a 50% hike at the beginning of 2022 and a 30% hike in the middle of the year to protect households from rising inflation. Erdogan also stated that the government will consider another hike to the minimum wage in the event of "unexpected" developments and expects inflation to slow down to as low as 30% in the first half of 2023. The government has introduced several relief measures to help cushion the impact of inflation, including caps on rent increases, reduced taxes on utility bills, and a major housing project for low-income families.
