Turkey’s net monthly minimum wage will be 22,104 Turkish lira ($630.36) in 2025, Turkish President Recep Tayyip Erdogan said on Tuesday, marking a 30 percent increase from 2024.
The minimum wage hike, which impacts some 9 million workers and is seen as a benchmark for the increase in private sector salaries, is expected to elevate inflation in the coming months, according to economists.
According to Reuters calculations based on central bank studies, a 25 percent wage increase would raise annual inflation by between 1.5 and 5 percentage points.
Turkish inflation declined to 47.09 percent in November from an annual high of 75 percent in May, mainly due to tight monetary and fiscal policies. However, the improvement in the print was slower than previously forecast according to the central bank.
