Turkey in trouble? | Aussie Stock Forums - The Legend of Hanuman

Turkey in trouble? | Aussie Stock Forums


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).


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