11.10.2024 14:30
Inflation forecasts in the markets have been updated. Participants predict that inflation will exceed 44% by the end of the year. The rate that concerns millions of civil servants and retirees is also starting to become clear. Here is the proposed raise rate for civil servants and retirees...
Millions of workers, civil servants, and retirees are focused on salary increases for January. Civil servants, civil servant retirees, and worker retirees are receiving raises as a result of the 6-month increase rate. With September, the three-month inflation has emerged. Accordingly, the total inflation for July, August, and September was recorded at 8.92 percent. The 8.92 percent increase for worker retirees has already been confirmed. Retirees had received a raise of 24.73 percent, which was the six-month inflation rate in June.
WILL CIVIL SERVANTS RECEIVE AN INFLATION DIFFERENCE?
Civil servants and civil servant retirees received a 10 percent contractual raise in July. They will obtain an inflation difference that exceeds this rate in the 6-month inflation. Additionally, a 6 percent raise arising from the collective agreement will be added to the inflation difference. Civil servants have not yet qualified for a difference since inflation has not exceeded the 10 percent threshold.
INFLATION EXPECTATIONS
The Central Bank announced the results of the Market Participants Survey. The market's inflation expectation for October is 2.39 percent. Participants predicted 1.96 percent inflation in November and 1.68 percent in December. The year-end inflation target was set at 44.11 percent. Based on these expectations, the 6-month inflation concerning retirees and civil servants is estimated to be around 15 percent. The Central Bank's year-end inflation target was set at 38 percent, with an upper band of 42 percent. Economists stated that the inflation in September, which exceeded expectations, could lead to surpassing the Central Bank's target.
RETIREMENT RAISE SCENARIO
Worker retirees are receiving raises based on the 6-month inflation rate. If this scenario occurs, the year-end raise rate for retirees will be around 15 percent.
CIVIL SERVANT RAISE SCENARIO
If the 6-month inflation for civil servants and civil servant retirees is around 15 percent, they will obtain an inflation difference of 4.5 percent. Additionally, civil servants have a 6 percent raise entitlement arising from the 7th Term collective agreement. In this case, civil servants' salaries will increase by around 11 percent.
WHAT WILL BE THE LOWEST CIVIL SERVANT SALARY?
The lowest civil servant salary had risen to 39,177 lira as of July. If the raise rate is 11 percent, the lowest retirement salary will increase to 43,486 lira.
WHAT WILL BE THE LOWEST CIVIL SERVANT RETIREMENT SALARY?
The lowest civil servant retirement salary increased to 17,587 lira in July. If the same scenario occurs, the lowest salary will rise to 19,521 lira.
WILL THE LOWEST RETIREMENT SALARY INCREASE?
The raise rate resulting from the 6-month inflation is applied to the base salary. The lowest retirement salary was set at a minimum of 12,500 lira as of July. Despite the inflation raise, monthly salaries below this amount were completed to 12,500 lira. According to current figures, 3 million 703 thousand 180 people receive the lowest retirement salary. An amendment by the Parliament is required for the lowest retirement salary to increase. The figure determined by the economic management is presented to the Grand National Assembly of Turkey as a bill. In other words, the raise rate resulting from inflation does not affect the lowest retirement salary.