AKP and cabinet disagreed on minimum wage and bonus increase

Debates on whether the minimum wage should be “revised” due to recent high inflation also echoed in the political backdrop. Some statements from the AKP wing also gave the impression that “there will be a regulation on the minimum wage in July”. Making the latest statement on the subject, AKP Deputy Chairman Hamza Dağ said, “We need to make moves on fixed incomes. Our relevant ministries are currently following, according to the incoming data already
There is an agenda about civil servants in July, the minimum wage is discussed in December. But we do not hesitate to intervene if necessary.” It was also said that the government will increase the holiday bonuses given to retirees.


Upon these developments, after the cabinet meeting under the chairmanship of President Recep Tayyip Erdoğan, there was an expectation that an increase in the minimum wage and retirement bonuses would be announced. Press organizations close to the government also kept this expectation on the agenda. However, in the statement made after the meeting, Erdoğan “frustrated” the expectation in question. According to the information Cumhuriyet has learned, the ruling wing is “squeezed between a hike and inflation.” The AKP and the cabinet “have a different view” regarding the price hikes. The AKP wing emphasizes that “there are many complaints from citizens about inflation, and therefore a reorganization should be made both in the minimum wage and in the holiday bonuses given to retirees”. However, it is pointed out that the stance of the cabinet, especially the Treasury and Finance Minister Nureddin Nebati, is “to the contrary”. In the government side, it is emphasized that “the minimum wage and pension bonuses should not be increased this year” on the grounds that the hikes to be made will increase inflation even more. If a raise is made, it is stated that the Treasury “does not have the budget” to cover it.


It is stated that the main purpose of the government is to stop inflation, which is heading towards double digits before the election. The government wing calculates that if the minimum wage and retirement bonuses are increased, the “supply-demand” balance will change, and therefore inflation will move upwards. President Erdogan used in his post-cabinet statement, “We are aware that we have a difficult picture before us. We hope that the product supply will stabilize again, supply channels will start to function, and the bubble in prices will deflate.”

Source: Cumhuriyet Gazetesi – Gündem by www.cumhuriyet.com.tr.

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