Report:
The ruling AKP party, which has faced disappointing results in surveys, is implementing regulations that require additional resources despite the 202.8 billion lira deficit in the budget in the span of two months and the 104 billion dollar cost of the earthquake. As a result, the minimum pension has been increased to 7 thousand 500 lira. This is a significant move as the government has ignored demands for an increase for several years. Additionally, the holiday bonus for retirees has been raised to 2 thousand liras just before the upcoming election.
Meanwhile, there is widespread anticipation among millions of workers regarding the minimum wage, with attention focused on President Recep Tayyip Erdoğan. Rumors are circulating in the capital lobbies suggesting that the minimum wage will be increased prior to the election. The expectation of an increase was further heightened after the Ministry of Labor and Social Security denied the statement made by Minister Vedat Bilgin, who claimed that he did not anticipate a raise. At the beginning of the year, the minimum wage was increased to 8 thousand 506 lira net. According to research conducted by Türkİş in February, the hunger limit has reached 9 thousand 426 lira. The same research also calculated the “living cost” for a single employee as 12 thousand 265.88 TL per month.
President Tayyip Erdoğan’s statement during the announcement of this year’s minimum wage, “If we encounter an unexpected situation, we will not hesitate to make an interim regulation, just like last year,” is frequently cited. There is speculation that the anticipated increase scheduled for July may be brought forward.
Under the regulations necessitating additional resources, the EYT regulation, which President Tayyip Erdoğan had previously opposed, has been implemented. This regulation affects nearly 5 million employees, and approximately 2.5 million people are expected to retire this year. Additionally, the long-debated staffing arrangement for public contracted personnel has recently been put into effect, resulting in the recruitment of nearly 500 thousand contracted personnel. The implementation of 3600 additional indicator regulations has also occurred. Furthermore, the omnibus bill in the Parliament includes the previously unimplemented temporary workers regulation. According to this bill, approximately 60 thousand temporary personnel in the public sector will be recruited based on the vacancies in the permanent staff and in order of seniority. Meanwhile, various ministries are announcing the recruitment of new personnel one after another. The Ministry of Labor and Social Security is specifically working towards increasing the minimum wage in the earthquake zone. As part of this effort, it is envisioned that the employer insurance premium will be covered by the state. Minister of Labor and Social Security Vedat Bilgin stated, “We have brought this work to the final stage.” The aim is to increase the minimum wage to above 10 thousand liras in the earthquake zone. Additionally, the public contract covering approximately 700 thousand workers in the public sector is also expected to be signed before the election.
ESG Risks:
– Inadequate budget management leading to a significant deficit
– Increased minimum pension and holiday bonuses potentially straining financial resources
– Uncertainty regarding potential increase in the minimum wage
– Potential economic instability due to unexpected policy changes
– Possible impact on living standards and poverty levels due to inflation and rising living costs
Vulnerable Groups:
– Retirees relying on pensions and holiday bonuses
– Workers earning the minimum wage or slightly above
– Temporary workers in the public sector
– Earthquake victims in need of increased support
Organizations:
– AKP (Justice and Development Party)
– Ministry of Labor and Social Security
– Türkİş (Confederation of Turkish Trade Unions)
Sectors:
– Government and public sector
– Retirement and pension systems
– Labor and employment
Keywords:
AKP, regulations, additional resources, deficit, budget, minimum pension, holiday bonus, workers, minimum wage, government, increase, election, President Recep Tayyip Erdoğan, Minister of Labor and Social Security, Vedat Bilgin, hunger limit, living cost, EYT regulation, retirement, public contracted personnel, staffing arrangement, indicator regulations, temporary workers regulation, ministries, earthquake zone, employer insurance premium, public contract, inflation, poverty levels.