A Scenario That Will Upset Millions of People for the Minimum Wage Increase! He Declared that Ankara Could Do This Much at Most

Minister of Labor and Social Security Vedat Işıkhan stated, “An interim increase in the minimum wage is not on our agenda. The process will continue as we decided at the beginning,” but the discussions and public pressure regarding the interim increase continue.

Making an evaluation on the subject, Ondokuz Mayıs University Faculty Member Prof. Dr. Murat Batı noted that Treasury and Finance Minister Mehmet Şimşek thinks that if he cannot receive employer support, there will be no interim increase in the minimum wage.

THREE REASONS FOR INTERMEDIATE RAISES

Income/Stamp Tax Exemption: There is a loss of 560 billion TL to the treasury due to the income/stamp tax exemption up to the minimum wage. In case of increase, this loss increases.

SSI Cost: The lack of exceptions in SSI calculations increases employer costs.

Inflation Effect: An increase of half the targeted inflation is expected.

Prof. Dr. Regarding the employer cost, Batı said, “The tax amount that the State will be deprived of due to the income and stamp duty exemption up to the minimum wage is the existence of informality and Minister Şimşek’s economic measures.” he said.

Prof. also shared his views on the SSI dimension. Dr. Murat Batı said, “Although the minimum wage is exempt from income and stamp tax, unfortunately there is no exemption in SSI calculations.

Since the minimum wage is 20 thousand TL gross for 2024, 2 thousand 800 TL SSI worker share and 200 TL worker unemployment fund share; There will be 3 thousand 100 TL SSI employer share and 400 TL employer unemployment fund share. In other words, there will be another 6 thousand 500 TL (a cost) in addition to the net salary. Thus, the total cost of a minimum wage earner to the employer will be 23 thousand 502 liras and 77 kuruş.”

“THERE MAY BE AN INCREASE OF 18 PERCENT”

Prof. Finally, Batı said, “If public pressure continues and the business world is convinced, I think the maximum targeted inflation will increase by half (18 percent), that is, a net of 20 thousand TL.” He included his statements.