Turkey announced on Thursday that the minimum wage would pull up to 55% as cost of living pushed millions into financial hardship, especially small businesses, while many could not afford to buy basic goods.
The move from the Turkish government is expected to ease the impact of increasing living costs, but there are concerns from economists that it would further elevate inflation that is sitting at a 24-year high of 84.4%.
Recep Tayyip Erdogan, President of Turkey, announced on television from Ankara on Thursday that starting in 2023 monthly minimum salary would be raised to 8,500 lira (approx. $455). Currently, 30% of Turkish workers receive the minimum wage.
November marks the first time in 18 months that inflation in Turkey decreased, it was up 84.4% annually and a little decrease from 85.5% in the previous month.
In the political angle, there would be a general election held up in June 2023, said by the country analyst.
“For now, the minimum wage is the highest in Turkey in the last 20 years,” Ragip Soylu, Turkey bureau chief for Middle East Eye, wrote in a tweet. “It will go really well with Erdogan’s core voters as it did in July. He will get some points. However it will be important to see whether the impact would continue until the presidential elections”.