Türkiye increases wages for 2025

Türkiye has increased its monthly minimum wage by 30 per cent to 22,104 liras ($627) for 2025, up from 17,002 liras, Labour Minister Vedat Isikhan announced. The hike, in line with market expectations, impacts over a third of the workforce and serves as a benchmark for other salaries.

The move is seen as aligning with inflation projections, potentially easing the central bank’s efforts to reduce inflation from 47.1 per cent to 21 per cent by the end of 2025.

Economists suggest the increase improves the likelihood of an interest rate cut, with the central bank’s Monetary Policy Committee set to announce its decision on Thursday.

President Recep Tayyip Erdogan’s administration has recently focused on reversing unorthodox policies that fuelled inflation, with Finance Minister Mehmet Simsek and central bank Governor Fatih Karahan steering a market-friendly approach.

However, challenges persist in convincing households and businesses of long-term price stability.

Attribution: Bloomberg

Subediting: M. S. Salama