Will there be an interim minimum wage increase? Minister Işıkhan's clear statement on the July increase

Millions of workers are closely watching whether the minimum wage will receive a second raise in July 2025. The minimum wage, which rose to 22,104 TL net with a 30% increase in January, has resurfaced after the July salary increases for retirees and civil servants. However, a recent statement from Labor and Social Security Minister Vedat Işıkhan has shifted expectations.

MINISTER IŞIKHAN: "IT IS EARLY TO ADD PRICE INCREASES"

Labor Minister Vedat Işıkhan recently stated, "It's premature to discuss an interim minimum wage increase. We expect inflation to decline. However, if something goes wrong, it could be on the agenda in July," adding that there are no clear plans for an increase at this time.

As in previous years, it's been suggested that high inflation rates would be a factor in the minimum wage increase mid-year. The minimum wage was raised twice a year in 2022 and 2023, but a single raise was implemented starting in 2024.

HOW WERE INTERMEDIATE PAY INCREASES IMPLEMENTED IN PAST YEARS?

In 2022, there was a 50% increase in January and a 30% increase in July.

In 2023, there was a second increase of 54.66% in January and 34.04% in July.

In 2024, a 49% increase was made in January alone.

In January 2025, the net minimum wage increased by 30% to 22,104 TL.

The government's inflation target for this year is 24%, while the Central Bank's forecast is 20%. These figures suggest that the likelihood of an interim price hike in July is low.

MINIMUM WAGE COST AND STATE SUPPORT

With the new minimum wage, the total monthly cost for an employer per employee has reached 30,556 TL. Additionally, the government's minimum wage subsidy has been increased from 700 TL to 1,000 TL.

The gross wage is 26,005 TL;

Net part: 22,104 TL

Social Security premium: 3,640 TL

Unemployment insurance premium: 260 TL

This table shows that the cost balance for both employer and employee has been carefully considered.

IF THERE IS A SURPRISE IN INFLATION, A PRICE INCREASE MAY BE ON THE AGENDA

While Treasury and Finance Minister Mehmet Şimşek announced that his 2025 year-end inflation expectation is around 20%, an interim minimum wage increase may be on the agenda again in the event of sudden price increases or unexpected developments in the market.

However, for now, there are no official preparations at the level of either the Ministry of Labor or the Minimum Wage Determination Commission.

(LIBERTY)

Source: NEWS CENTER