The upsetting state of the retirees in Turkey

The upsetting state of the retirees in Turkey
Date: 3.1.2022 13:30

Year 2002; the lowest retired-worker pension is 257 Turkish Lira, the minimum wage is 184 Turkish Lira. Year 2022; the lowest retired-worker pension is 1,500 Turkish Lira, the minimum wage is 4,250 Turkish Lira.

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The lowest pension in 2002 was double the amount of the minimum wage, but today it has been reduced to a third.
 
It does not seem possible that the inflation figure to be announced today will meet the expectations.
 
While the public's rain of raises continues with all its violence, the eyes of workers, civil servants and retirees are on the inflation in December, which will be announced today.
 
Looking at the figures, the biggest loss after 2002 was in pensions.
 
While the lowest retiree's pension was 257 lira in December 2002, the minimum wage was 184 lira in the same period.
 
Nowadays, pensions have fallen to one-third of the minimum wage.
 
With the hike game, electricity, natural gas and fuel price hikes were made in a way that would not affect the pension increase.
 
With the December inflation to be announced by TURKSTAT today, the inflation figure for the second 6-month period of 2021 will also become clear.
 
This figure will determine the rate of increase in wages, salaries and pensions of workers, civil servants and retirees.
 
Kazım Ergün, Chairman of the Retirement Association of Turkey, wanted the lowest pension to be at the minimum wage level.
 
"While the minimum wage was 72 percent of the lowest pensioner's pension in 2002, it is impossible to struggle for life with a pension of 1,500 lira today. The minimum pension should be equal to the minimum wage," Ergün said.
 
On the other hand, the exorbitant energy hikes announced the previous day were suspended until the first day of January so as not to increase the inflation figures. This means that retirees receive less salary increase.
 
The 6-month inflation figure of 2021, which is determinant in the hike rates for workers, civil servants and retirees, will be clarified with the December data to be announced by TURKSTAT today.
 
The December inflation figure, which concerns millions of people, especially workers, civil servants and retirees, will be announced by TURKSTAT today.
 
With December inflation, the inflation rate for the July-December period of 2021 will also become clear.
 
The aforementioned 6-month inflation data, which is taken into account in collective agreements, will directly and indirectly affect the income of millions of people.
 
Welfare share for civil servants is on the agenda
 
Workers, civil servants and retirees will come first among the sectors that will be directly affected by the inflation rate.
 
In the 5th Term Collective Agreement (2020-2021), the Public Servants Arbitration Board decided to raise 3+3 increases in 2021 for 4 million civil servants and more than 2 million retired civil servants.
 
Accordingly, an inflation difference of 3 percent will also be applied to civil servant salaries. On top of this hike, it is expected that the welfare share demanded by civil servant confederations due to the fluctuation in the economy in 2021 will also be on the agenda.
 
This calculation will also be valid for civil servant retirees under the same contract. Salaries of approximately 8,5 million retirees and beneficiaries will be determined by the inflation figure for the second 6 months of this year.
 
Salaries of workers and retirees from Social Security Organization for Artisans and the Self-employed (Bağ-Kur) will increase at the rate of 6-month inflation.
 
According to the 2021 Public Collective Bargaining Agreement Framework Protocol, the wages of more than 700,000 workers in public institutions and organizations will be increased by 5 percent plus inflation difference in the second 6 months of 2021.
 
July-November inflation 10,4 percent
 
According to TURKSTAT data, the inflation rate in the first six months of 2021 (January-June) was 8,45 percent, so there was an inflation difference of 5,45 percent for civil servants and civil servant retirees in this period.
 
In the July-November period, inflation was 10,4 percent. With December inflation, the inflation figure for the second 6-month period of 2021 will become clear.
 
According to the expectations survey on December inflation data conducted by Anadolu Agency (AA) Finance with the participation of 21 economists, this rate was 8,54 percent on average. If this forecast (8,54 percent) is realized, the rate for the second half of 2021 will be 19 percent.

YEREL HABERLER

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