President Erdoğan's Statement on Minimum Wage
President Recep Tayyip Erdoğan made important statements regarding the Turkish economy to journalists upon his return from the G20 Leaders' Summit held in Brazil. Erdoğan reiterated his determination to combat inflation, stating that no segment of society will be left to suffer from inflation.
He mentioned that a decrease in inflation has been observed since May 2024, and this decline is expected to continue in the coming months. "In 2025, we will continue to reduce inflation through the delayed effects of monetary policy, a decrease in the budget deficit in fiscal policy, and aligning prices with the inflation target," he said. Erdoğan emphasized that a 107.5% increase in the minimum wage was implemented during a period when the inflation rate was 65% in 2023.
Remarkable increase in minimum wage President Erdoğan reminded that a 107.5% increase in the minimum wage was implemented during 2023 when inflation was at 65%. He stated that a 49% raise was given for this year and that as of October, inflation is below 49%, projecting that the year will end with an estimate around 44% according to the Central Bank. Erdoğan mentioned that the minimum wage, which was 5,500.35 TL in January 2023, has been significantly increased to 17,002 TL after the updates in July and the increases made in January 2024.
He indicated that inflation in basic goods is around 28.5%, while in vegetables, fruits, and food, it is around 40%. He pointed out that factors keeping inflation high include inflation in services such as rent and private education, and noted that inflation has entered a trend of permanent decline.
The "World is larger than five" statement echoed in the G20 summit President Erdoğan stated that the topic of reforming international organizations was discussed in the second session of the summit and that the "World is larger than five" approach is gaining increasing support. He expressed that the current system serves power and the powerful and is no longer meeting expectations, emphasizing the need for a more democratic, broadly representative, and accountable structure.
Erdoğan noted that Turkey has consistently expressed its views on this issue in international platforms, stating that developing countries need stronger representation in international financial institutions, including the IMF and World Bank. He stated that the G20 platform has proven its effectiveness since the global economic crisis, expressing his belief that overcoming global issues is possible with the G20's determined and solution-oriented understanding.