"Demand for Minimum Wage Increase from İTO President Avdagiç that Will Anger Employees"

While official discussions for the minimum wage increase are ongoing, a striking statement came from Şekib Avdagiç, the President of the Istanbul Chamber of Commerce (İTO). While millions of workers demand a significant increase in the minimum wage, Avdagiç stated, "In our opinion, the increase in wages, taking into account the 'targeted inflation', will yield positive results in many areas, from pricing behavior to expectation management and demand balance."

Speaking at İTO's December Assembly meeting, Avdagiç emphasized that the minimum wage is a fundamental element of production, and therefore, keeping it at a reasonable level is extremely important for both employees and employers.

HE POINTED TO TARGETED INFLATION

Avdagiç continued his statement on the minimum wage; "In our view, the minimum wage is not just a matter of setting a base salary. There are many items it is linked to, from unemployment benefits to social security premiums, from severance pay to internship wages. The minimum wage affects salaries for C-Level positions as well. We believe that the increase in wages, taking into account the 'targeted inflation', will yield positive results in many areas, from pricing behavior to expectation management and demand balance. We consider it important to determine a minimum wage increase rate that both workers and employers can agree on throughout the year, in line with the perspective put forth by the economic management."

Additionally, he noted that the restructuring of income tax brackets should be kept on the agenda, as it would both increase purchasing power and alleviate the cost pressure on employers, as well as reduce the informal economy.

MINIMUM WAGE DISCUSSIONS HAVE OFFICIALLY STARTED

The process for determining the new minimum wage, which directly concerns nearly 7 million workers and indirectly affects the entire society, has officially begun. The first meeting of the Minimum Wage Determination Commission to set the new minimum wage was held on December 10. The date for the second meeting has been set for December 16. After the first meeting, Ramazan Ağar, the Deputy Chairman of Türk-İş, stated in a press release that no figures were discussed during the meeting. Türk-İş President Ergün Atalay, in a statement made before the official process began, said that the increase in the minimum wage, considering the inflation of 2024 and the expected inflation for 2025, is not acceptable.

WORKERS ARE DEMANDING A HIGH INCREASE

The Central Bank's year-end inflation target for 2025 is at 21 percent. Employers state that they expect an increase in line with the 2025 inflation target, and therefore, the increase should be around 25 percent. If the employers' low increase demand is accepted and a 25 percent increase is made, the current minimum wage of 17,002 lira will rise to 21,252.50 lira.

The Revolutionary Workers' Unions Confederation (DİSK) had announced its demands regarding the minimum wage. In DİSK's statement, it was emphasized that "the poverty line should be considered as a criterion in the minimum wage increase, and assuming there are two workers in a household, the minimum wage should be at least around half of the poverty line." According to the results of the hunger-poverty line research conducted by TÜRK-İŞ, the poverty line was announced as 66,976 lira in November. Based on this data, DİSK's minimum wage demand points to approximately 33,500 TL.