Erdogan Pledges Minimum Wage Hike Will Outpace Inflation in 2025
- Pay talks due to begin in December, president has final say
- More than a third of the workforce earns the minimum wage
Recep Tayyip Erdogan
Photographer: Oliver Bunic/BloombergThis article is for subscribers only.
Turkish President Recep Tayyip Erdogan pledged that minimum wage increases will continue to outpace inflation next year and that workers’ purchasing power would be safeguarded amid lingering price pressures.
The pay hikes will be likely a key determinant of inflation in 2025. Wage restraint would signal the authorities’ commitment to reining in price pressures, and investors are hoping for a measured increase that will align with the central bank’s projections of the inflation rate falling to 21% by the end of next year.