Bad news for 3.6 million retirees! They will receive a raise lower than inflation.

The Turkish Statistical Institute announced that the inflation rate for June is 1.64, the inflation rate for the first six months is 24.73, and the annual inflation rate is 71.60. Based on these data, SSK and Bağ-Kur retirees are entitled to a 24.73% increase. The total increase rate for civil servants and retired civil servants is 19.31%.

ESTIMATED FIGURES FOR PENSION INCREASES ARE ANNOUNCED

There hasn't been any announcement yet regarding the adjustment of the minimum pension, which is currently set at 10,000 TL. The expectation is that there will be an increase of at least the inflation rate for the first six months. If this scenario becomes a reality, it is suggested that the minimum pension could be redefined to be around 12,473 TL. A parliamentary regulation is required for the adjustment of the minimum pension.

• Retirees with a base pension of 10,000 TL are expected to receive 12,473 TL.
• Retirees with a base pension of 15,000 TL are expected to receive 18,709 TL.
• Retirees with a base pension of 20,000 TL are expected to receive 24,946 TL.
• Retirees with a base pension of 25,000 TL are expected to receive 31,182 TL.

MILLIONS OF WORKER RETIREES MAY NOT RECEIVE AN INCREASE

In July, an increase based on the inflation rate for the first six months is implemented for worker and Bağ-Kur retirees, in accordance with Law No. 5510. This is because the pensions of retirees whose base pensions are below 10,000 TL are supplemented by the Treasury to reach 10,000 TL. Thus, the minimum pension for the retiree themselves becomes 10,000 TL. It is even lower for widows and orphans. However, the increase in pension is applied to the base pension, not the supplemented pension.

THEY WILL RECEIVE AN INCREASE LOWER THAN INFLATION

It is estimated that there are 3.6 million retirees whose base pensions are below 10,000 TL. The increase in pension that will be applied in July is based on the base pension, and it will not increase the minimum pensions, which are currently at 10 TL, by the official inflation rate. Therefore, millions of retirees will receive either no increase or an increase lower than the official inflation rate.

For example, if a retiree with a base pension of 8,000 TL receives a 24.73% increase, their pension will increase by 1,978 TL, reaching 9,978 TL, which will then be supplemented to 10,000 TL. Since they are already receiving 10,000 TL, there will be no increase in their pension.

CALCULATION METHOD FOR PENSION INCREASE

SSK and Bağkur retirees will see their new pensions when they multiply their last received June salaries by 1.2473. Civil servants and retired civil servants will see their new salaries when they multiply their last received salaries by 1.1931.