Turkey hikes minimum wage by 55% as inflation and living cost crisis bite
View over the tourist area of Istanbul, Turkey, on october 27, 2022.
Rita Franca | Nurphoto | Getty Images
Turkey announced a hike of its minimum wage by 55% Thursday, amid a cost of living crisis that has plunged millions into financial hardship, hammered small businesses and rendered many unable to afford basic goods.
The move is aimed at easing the impact of surging living costs, but economists worry it will further increase inflation. The country’s official rate of inflation is currently at a 24-year high of 84.4%.
Turkish President Recep Tayyip Erdogan, in a televised speech from Ankara Thursday, said that the monthly minimum salary would be brought to 8,500 lira ($455) starting in 2023. More than 30% of Turkey’s workforce is on the minimum wage, according to Turkish officials.
However, there is a political angle, country analysts say: Turkey’s general election is due to be held in June 2023.
This is a developing story and will be updated shortly.
