Turkey Raises 2025 Minimum Wage by 30% to 22,104 Liras Amid 47% Inflation and First Rate Cut of 150 Basis Points

Dec 25, 2024, 09:45 AM

Turkey has announced a 30% increase in the minimum wage for 2025, raising it to 22,104 liras, which has drawn criticism for not keeping pace with the 47% inflation rate. Opposition parties have condemned President Erdoğan and the ruling AKP for this decision, arguing that the wage hike is insufficient given the current economic conditions. The Turkish central bank is expected to respond to this wage increase with its first interest rate cut in nearly two years, with projections suggesting a reduction of 150 basis points. This comes amid rising expectations for monetary easing, influenced by recent economic developments, including record foreign reserves and interest rate cuts by the Federal Reserve and European Central Bank. Erdoğan has defended the wage increase, stating that the government has not allowed workers to suffer from inflation. The opposition, however, has vowed to escalate calls for early elections in light of the wage decision.