Turkey lifts net monthly minimum wage by 49 per cent for 2024 as inflation soars

With an aim to alleviate the impact of rising living costs especially in the lead-up to local elections, Turkey is set to implement a 49% increase in the minimum wage in the new year.

The monthly net minimum salary will be adjusted to 17,002 liras ($578), according to Labor Minister Vedat Isikhan, who announced the decision during a televised press conference in Ankara.

This adjustment follows a more than 100% increase in the minimum wage this year, distributed in two increments, which contributed to accelerated inflation and raised labour costs. The minister emphasized the government's commitment to preventing workers from being adversely affected by inflation.

Turkey's annual inflation rate edged up to 61.98% in November, its highest level this year but just shy of expectations, signalling that an aggressive rate-hiking cycle may be beginning to cool demand.

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Inflation soared after a currency crisis at the end of 2021 and touched a 24-year peak of 85.51% in October last year. This year, the lira has so far lost some 35% of its value, compounding the cost-of-living crisis for Turks.

With inputs from agencies.