Countdown for additional raise for retirees… Will the raise difference between workers and Bağ-Kur retirees be eliminated? EYT impasse regarding additional raise

Millions of retirees have their eyes turned to the raise rate. With the announcement of inflation figures, SSK and Bağ-Kur retirees were entitled to a 37.57 percent raise. However, considering the 49 percent increase in minimum wage and civil servant salaries, a certain difference emerged.

It is stated that progressive raise and gradual raise formulas, especially the welfare share, are on the agenda for Bag-Kur residents.

Preparations for a new regulation regarding pension raises consist of two legs. In this context, the focus is primarily on what steps will be taken for those whose basic salary is low and earns 7,500 lira. In this context, it is calculated that if the minimum pension is increased slightly above 10 thousand liras to a figure such as 10 thousand 250 liras, the number of retirees in this scope will increase from 4 million 900 thousand people to 5 million 200 thousand people.

It is predicted that if the minimum pension is increased to around 11,500 liras, which was previously on the public agenda, 55 percent of retirees will fall into the “lowest-paid” group.

A RAISE DIFFERENCE MAY ARISE AGAINST THE CIVIL OFFICER

The plan prepared to eliminate the 11.7 point raise difference between civil servants and workers-Bağ-Kur retirees includes alternative steps. If the raise rates of the two groups are equal for January, attention is drawn to the 5.5 point increase difference that may occur in favor of workers and Bağ-Kur retirees in July.

According to NTV, if the Central Bank’s inflation projections for 2024 are realized and inflation is 24 percent in the January-June period, workers and Bağ-Kur retirees will receive a 24 percent raise in July, and civil servant retirees will receive an 18.6 percent raise in July. There will be a 5.4 point difference against retired civil servants in the July period.

It is stated that if the final decision of AKP President Recep Tayyip Erdoğan is to make a new regulation for pension increases, steps can be taken by taking this situation into consideration. Accordingly, it is stated that in addition to the 49.25 percent January raise for civil servant retirees, the raise rate for workers and Bağ-Kur retirees may be 44-45 percent, thus taking into account the 5.4 point difference that will occur in July.

ADDITIONAL INCREASE FORMULA

It is also stated that another formula could be to improve salaries below 7 thousand 500 liras by giving an additional 5 points raise to workers and Bag-Kur retirees, thus the raise rate for nearly 5 million retirees with salaries below 7 thousand 500 liras can be equal to 49.25 percent. .

The negative impact of an improvement that can be achieved with all these formulas on budget balances and inflation target is an important factor. In this regard, particular attention is drawn to the expenses to be made to repair earthquake damage and the cost of the EYT regulation.

HOW MUCH WILL EYT COST?

According to calculations, 2 million people will retire in 2023 with the EYT regulation. 300 thousand more people are expected to retire this year. In 2023, the pension and bonus costs of EYT members alone will be 213 billion lira. The cost, including premium losses due to retirement, is 250 billion lira. In 2024, the salary and bonus cost of EYT employees will be 360 ​​billion lira. Again, when premium losses are taken into account, the cost will reach 500 billion lira.

In a situation where only the EYT cost is this size, the economic management does not favor the new regulation on pension raises, emphasizing that the budget balance and the 2024 inflation target of 36 percent will be difficult. However, the final decision will be made by President Recep Tayyip Erdoğan.

WHEN IS THE CABINET MEETING?

At the first Cabinet Meeting of 2024, welfare share, linear increase and gradual increase formulas for pensioners’ basic salaries will be discussed. The last Cabinet Meeting was held on Wednesday, December 6.

No statement has been made yet about the date of the next Cabinet Meeting. However, the Cabinet Meeting is expected to be held this week.