Lightning: Minimum Wage Increases Above Inflation

The Minister of Treasury and Finance, Mehmet Şimşek, stated that the minimum wage has increased above inflation. In a statement made through his X account, he noted, "For the permanent increase of our employees' purchasing power and well-being, price stability is a prerequisite. The ultimate goal of the program we have implemented is sustainable high growth and fairer income distribution. We have always stood by our employees during our governments."

Shimşek continued, "During the period from 2005 to 2024, we increased employment by 13.7 million people, which means we provided an average additional employment of over 680,000 per year. Since we started implementing our program in June 2023, employment growth has reached 1.4 million. The minimum wage is increasing above inflation. In 2023, inflation was 64.8% while the minimum wage increase was 107.3%. With an expected inflation rate of approximately 45% in 2024, the minimum wage increased by 49.1%.

Between 2003 and 2024, the annual average growth rate was 5.3%, while the real increase in the minimum wage was 5.6%. The share of labor payments in gross value added reached its highest level since the series began in 1998, at 37.6% in the third quarter of 2024. The increase in the last year was 6.1 percentage points.

The minimum wage, which was $112 in 2002, today corresponds to $196 when adjusted for U.S. inflation. For 2025, the minimum wage is above $620 at the current exchange rate. The dollar value of the minimum wage has increased to 5.6 times the 2002 level, and when adjusted for U.S. inflation, it is 3.2 times higher.

Our current minimum wage level is higher compared to developing countries such as Romania, Bulgaria, Mexico, China, Brazil, South Africa, Indonesia, Russia, Egypt, and India."