ANKARA – Turkiye has raised the monthly minimum wage by further 34% starting on July 1 bringing it to a net 11,402 lira ($483) for the second half of the year in an effort to combat skyrocketing inflation, the government said on Tuesday.
According to Turkish newspaper Daily Sabah, Labour Minister Vedat Isikhan said the minimum wage assessment commission “completed its work with an agreement between the workers and employers.”
Ankara increased the minimum wage by 100% throughout the course of the year as a result of the inflation being far above than the stated 5% goal and reaching a 24-year high of 85.5% in October.
May saw a drop in annual inflation to 39.6% because to the government’s free supply of natural gas, which offset price increases for other commodities.
An unconventional strategy of cutting interest rates amid growing prices contributed significantly to the cost-of-living issue, which in turn sparked a currency crisis in late 2021.
Since May’s elections, the lira has lost another 21% of its value.
President Tayyip Erdogan, who was re-elected, has indicated he is prepared to pivot to rate increases.
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