Real value of workers' wages drops to 83 liras since January
Özgür Müftüoğlu said that the public wage hike affects all workers and that minimum wage earners are being pushed below the hunger line.
Özgür Müftüoğlu said that the public wage hike affects all workers and that minimum wage earners are being pushed below the hunger line.
Inflation figures for June, which determine the salary increases for millions of public employees and retirees, have been announced. According to the Turkish Statistical Institute (TÜIK), annual inflation in June was 35.05 percent, while monthly inflation stood at 1.37 percent. The six-month inflation rate reached 16.67 percent. As a result, public employees and retirees will receive a 15.50 percent raise, while retirees under the Social Security Institution will receive 16.67 percent. The government, however, declared that there would be no interim raise for minimum wage earners.
Economist Özgür Müftüoğlu said that all wage earners, starting with minimum wage workers, are being pushed below the hunger threshold. He emphasized that the wage increase announced for public employees and retirees, based on the latest inflation figures, will inevitably influence the private sector as well.
All wage earners will be affected
Özgür Müftüoğlu emphasized that the public wage increases announced on July 3, based on inflation figures, would in fact shape the broader wage policy affecting a much wider segment of the population: "With the inflation figures announced on July 3, I made a calculation, adding one more step to the previous estimations made by the Confederation of Progressive Trade Unions of Turkey (DISK). We can now see that there has been a loss of approximately 3,685 liras in the value of the minimum wage of 22,500 liras. In other words, the 100 liras a worker had at the beginning of the year is now worth only 83 liras. What is even more alarming is that an interim wage increase is not even on the government’s agenda, so there is no clarity on what the situation will be in the next six months. The Central Bank’s annual inflation target was 24 percent, and already in the first six months, according to the TÜIK, 16.5 to 17 percent has been reached. That leaves only 7 to 7.5 percent inflation for the remaining six months, an unrealistic expectation. If there is no raise during this period, wages will lose even more value.
The hunger threshold declared by the Confederation of Turkish Trade Unions (Türk-İş) is around 26,000 liras, while the minimum wage stands at 22,500 liras. This means that even in the first six months, there has been a drastic impoverishment and wages have already fallen below the hunger line. And let us be clear: the hunger threshold only refers to the amount a family needs to eat properly and healthily. It does not include rent, education, transportation, or any other basic expenses.
When you look at the poverty threshold, even a significant portion of public sector employees, civil servants, fall below it. The poverty line has been calculated at around 85,000 liras, whereas the average salary of public employees currently stands at around 49,000 liras. And there is a risk that it will fall even further. Because during the upcoming collective bargaining period for public employees, the wage increases will be based on inflation rates, rates that are calculated through TÜIK figures. As long as that continues, these losses will persist. The same logic applies to around 600,000 public sector workers who are currently in the collective bargaining process. This cycle will also shape wage negotiations and collective agreements in the private sector. Since there is no public outcry, it is not just public sector workers, but all wage earners across Turkey who are being condemned to hunger."
Various tactics used to suppress workers' reactions
Özgür Müftüoğlu underlined that 2025 was expected to be a year in which workers and all wage earners would increasingly voice their reactions, as wage suppression would intensify. However, he stated that this reaction was deliberately stifled through pressure on unions and the demonization of striking workers: “For some time now, we have been experiencing a process where all wage earners, starting with minimum wage workers, but soon affecting everyone, are being pushed toward the hunger threshold. This includes public sector workers and unionized private sector workers with collective agreements. Minimum wage earners and retirees have already fallen below this threshold. And step by step, others are also being brought to that point. When determining the minimum wage for 2025, they introduced the concept of ‘target inflation.’ At first, the Central Bank said the target was around 21 percent. Then it was raised to 24 percent. An unrealistic target is announced, and then the TÜIK releases figures to match it.
It was foreseen that 2025 would be a year marked by a rise in labor unrest and growing reactions from the working class. In anticipation of this, significant pressure was placed on independent unions like BIRTEKSEN and others that demanded additional wages or improvements in economic rights. Union organizing was portrayed as if it were a criminal activity. In addition, we witnessed clear hostility toward workers during strikes such as the one involving municipal workers in Izmir, hostility even supported by opposition mayors.
Therefore, a strategy was implemented that not only legitimized the government’s economic program but also politically undermined the opposition, while at the same time preventing workers’ reactions from gaining traction. As if this were not enough, just last week we heard something alarming in a Friday sermon by the Directorate of Religious Affairs: ‘If someone is paid for the work they do, anything else they demand is a betrayal of trust.’ In other words, they are saying: accept whatever you are given, do not ask for more, and do not slow down your work or go on strike, otherwise, it is a sin. This reveals yet another mechanism of control, using religion to impose moral pressure on workers and wage earners.”
Struggles must be united
Özgür Müftüoğlu emphasized that the struggle for democracy must go hand in hand with the struggle of labor, especially under current conditions: "Given this reality, what is expected from unions is to transform this reaction into an organized force. Of course, when we take into account the existing bureaucratic structure within the unions, the initiative cannot be expected solely from them, workers must demand it and exert pressure. Today, there are indeed reactions, including from workers in many areas of the public sector. They are trying to make their voices heard, but what is needed is unity. Because this is not just the problem of a worker in one workplace, or in one sector, or in one company.
This is a moment to put forward economic demands while also building a crucial pillar of the democratic struggle. If there is to be democracy in Turkey, it depends on this. Where hunger exists, it is hardly possible to speak of a democratic struggle. People first fight to feed themselves. Only after that can they engage in other fields of struggle. If there is no impact at this initial stage, it becomes impossible to build a democratic field of resistance in society later on. This point must be taken seriously."