Amid Inflation and Upcoming Elections, Turkey Announces Significant Salary Hike for Civil Servants

Amid Inflation and Upcoming Elections, Turkey Announces Significant Salary Hike for Civil Servants

Turkey’s Salary Hike: An Overview

Turkey’s Minister of Labor and Social Security, Vedat Işıkhan, recently announced a significant wage increase for civil servants and retired officials. The increase, projected to take effect in January 2024, will see civil servant salaries rise by approximately 50% in line with inflation targeting. This implies that the lowest civil servant salary will increase from the current 22,017 liras to an estimated 33,000 liras.

Retirement Pensions and the EYT Scheme

In addition to the salary increment, Işıkhan also reported that work is ongoing regarding adjustments to the retirement pension, following instructions from President Recep Tayyip Erdoğan. The completed study will be presented to the President for approval. Işıkhan emphasized that retirees, workers, and civil servants have not been crushed by inflation during the tenure of the current government. This approach, he assured, will continue in the future.

Under the EYT (early retirement) scheme, the retirement procedures of 1,899,000 people have been carried out successfully. For those EYT retirees who have not yet received their pensions, Işıkhan assured that they will receive their rights before the end of the year.

Additional Measures

Işıkhan also shared several measures that the government plans to implement progressively as part of their election promises. These include a reduction in the BAĞ-KUR premium day count from 9,000 to 7,200, equating it with the Social Security Institution insured workers. This adjustment will cover 1 million BAĞ-KUR insured individuals.

Furthermore, as part of the Family Protection Shield, the government aims to ensure that at least one person in each family, with priority given to young people, is employed. All insurance premiums for these individuals will be covered for a certain period. Housewives will also receive voluntary insurance premium support.

Among the changes, Işıkhan also highlighted that a 3600 additional indicator will be granted to all civil servants who have reached the first degree. The implementation of old-age care insurance will also be among the upcoming regulations.

Implications and Context

The announcement of these substantial economic reforms comes at a time when Turkey is grappling with high inflation rates and an upcoming tightly contested election. The economy, once a selling point for President Erdoğan, has become a point of contention due to spiraling living costs, a tumbling lira, and double-digit inflation. These issues have frustrated Turkish voters, prompting the current administration to take decisive action.

The proposed measures, such as the salary increase for civil servants and retirees, the adjustment of retirement pensions, and the reduction in BAĞ-KUR premium day count, are seen as strategies to attract voters and alleviate the economic pressure on the populace. However, the effectiveness of these measures in tackling Turkey’s deep-seated economic issues remains to be seen.