DİSK Calls for Minimum Wage Re-evaluation: "Must Be Determined Again in July 2025!"

ANKARA – The Confederation of Revolutionary Trade Unions of Turkey (DİSK), through a statement by its President Arzu Çerkezoğlu on behalf of the Executive Board, emphasized the urgent need for the Minimum Wage Determination Commission to be convened by the Minister of Labor and Social Security to re-evaluate the minimum wage, effective from July 2025. DİSK stated that the minimum wage negotiation is the most crucial wage negotiation in Turkey and that the current situation is disadvantaging millions of workers.

"Minimum Wage is a Widespread Wage"

DİSK's statement highlighted that due to the low unionization rate in Turkey, the minimum wage has become a widespread wage affecting approximately half of all salaried employees, not just a small segment. This situation makes the minimum wage the most significant factor determining the general wage level in the country, and its increase would directly impact the welfare of millions of workers.

"Two Minimum Wage Increases Per Year is Legal and Common Practice"

DİSK countered the government and employer circles' argument against a July increase, which often cites that "the minimum wage is usually determined annually." The statement pointed out that according to Article 39 of Labor Law No. 4857, minimum wages are determined at least once every two years, but there is no legal obstacle to increasing it twice a year; on the contrary, it is legally permissible. DİSK recalled that since 2003, the minimum wage has been increased twice a year 12 times, especially during high inflation periods in 2022 and 2023.

"Minimum Wage Erodes Against Inflation and Does Not Share in Growth"

The statement noted that the net minimum wage, set at 22,105 TL effective January 1, 2025, received a 30% increase as of January 2025, while the official year-end inflation for 2024 was announced as 44.4%. Accordingly, the 2025 minimum wage was determined 14.4 points below the 2024 year-end inflation, meaning workers are owed at least 14.4 points. In the first five months of 2025, the minimum wage eroded by 3,336 TL against inflation, with this loss expected to be around 3,800 TL in the first 6 months of the year, making a July increase unavoidable.

Considering growth rates, DİSK calculated that the 1.5-year loss in minimum wage between January 2024 and July 2025 is approximately 8,100 TL. It was also noted that TÜİK's inflation data is debatable, and therefore, the minimum wage should be increased in July to at least compensate for these losses and cover the inflation impact of the coming months.

"Minimum Wage is Far Below Living Conditions"

The statement emphasized that the minimum wage should be evaluated not only based on inflation but also considering living conditions. According to data from DİSK-AR, the research center of Birleşik Metal-İş, as of May 2025, the hunger threshold for a four-person family was 23,615 TL, and the poverty line was 81,686 TL. Given that the cost of living for a single worker approached 37,912 TL in May 2025, it is evident why the minimum wage needs to be re-determined in July 2025.

"Minimum Wage Must Also Be Increased Due to Tax Burden"

DİSK stated that due to low tax brackets, employees enter higher tax brackets early in the year, leading to higher tax payments and reduced disposable income. The method of applying the minimum wage exemption, as a tax deduction rather than a base deduction, also causes employees to pay more income tax. An increase in the minimum wage would relatively alleviate the tax burden on employees due to the tax exemption.

"Minimum Wage Increase Will Have a Stimulating Effect on the Economy"

Contrary to claims that a minimum wage increase would lead to unemployment, DİSK argued that it is more likely to stimulate demand and thus increase employment. It was stated that economic policies based on low wages inevitably lead to contraction and an economic downturn, exacerbating unemployment. DİSK asserted that growth based on wage increases is possible and that the claim of wage increases causing inflation is a "neoliberal paranoia."

"Minimum Wage Increase Will Boost SGK Premium Revenues"

DİSK noted that an increase in the minimum wage would lead to higher SGK (Social Security Institution) premium revenues and consequently increased government contributions, which would also help in paying higher pensions to retirees.

"Minimum Wage Increase Will Legitimise Unionised Workers' Wage Demands"

It was stated that an increase in the minimum wage would provide a strong basis for increases in other wage levels and would enhance the social legitimacy of wage demands from unionized workers.

"Impact of Minimum Wage on Small Businesses"

The statement acknowledged that while the minimum wage increase might be a cost increase for small businesses, it could mean a reduction in labor costs for large businesses, who benefit from wages converging towards the minimum wage. DİSK suggested that instead of a general minimum wage incentive for all employers, selective and partial support should be provided to small-scale and unionized businesses, which would also encourage unionization.