The minimum wage has fallen in Turkey!

The minimum wage has fallen in Turkey!
Date: 26.12.2018 14:00

Today in many newspapers you will read the news that the minimum wage is 26 percent increased, but what actually happened?

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Dollar and Euro exchange rates weighed over Turkey's economy continues to lose blood. In 2018, the minimum wage was $ 425 in dollar terms. As of 2019, the minimum wage to be received by employees in 2019 fell to $ 381. At one point, the minimum wage was $ 44 on a dollar basis.
With the minimum wage to 2 thousand 20 Turkish Liras, the cost of production and service sectors will increase, indicating that the economist Uğur Civelek, as a result of this situation will be seen increase in rates of exchange rate and inflation. Civelek, 2 thousand 20 liras which solve the problem of which sector? The buying power of citizens in the last 16 years has systematically declined. The raise will not be enough. The downturn in the economy continues to deepen in the crisis. This situation also affects those who voted for the ruling party. This could be attempted to stop the thawing with this hike rate. It is very difficult for the employer to bear this cost increase. Because Turkey is a country still engaged in the production and labor power. The limits that the employer could accept were overwhelmed. Which cut is more happy, the employer cuts, but probably more likely to not be cut, he said.
Speaking to the Milli Gazete, DİSK Chairman Arzu Çerkezoğlu stated that the minimum wage demands should be 2 thousand 800 TL for 2019, and said: "As union we conducted a struggle on this issue. Because of the increase in inflation and exchange rate, the minimum wage declined with the loss. The expected inflation in 2019 is not a sigher. The economic crisis will continue into which Turkey starting in August as well, was supposed to receive its share in the national income and growth from the minimum wage. Today we look at the figures in Turkey hunger and poverty limit; the hunger limit is 2 thousand TL and the poverty line is over 6 thousand TL" she said.
Dr. Esfender Korkmaz said, "The fact that the minimum wage for 2019 has increased by 26 percent, if the inflation rate is 15.9 percent, as foreseen in the new economy program, that is, if there is a real increase in the minimum wage, it will partially help the livelihood of the employees. It will also be effective in reviving the economy by creating demand growth. On the other hand, the same increase in demand may lead to an increase in inflation. For this, the political power must manage the economy well. The minimum wage increase was made as election populism. But it was in favor of the worker. If they are mismanaged, this increase can be positive, but negative effects can be overwhelming," he said.
Saadet Party Deputy Chairman of Economic Affairs Dr. Latif Öztek evaluated the minimum wage rate announced for 2019. Öztek pointed out that the figure of 2 thousand 20 TL is low considering the economic data. Underlined that the determined number should not be in the tax zone, in Minimum wage should be exempt from tax. Because in the second half of the year when the wage entered the tax zone, the worker cannot get the salary he received in January and the worker is therefore crushed. However, with the tax exemption of the minimum wage on the worker's back a little bit reduced, he said.


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