The rate of increase can be up to 50 percent.

The rate of increase can be up to 50 percent.

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There is a raise to be made in July on the agenda of millions of civil servants and retirees. Increasing the lowest pension to 7 thousand 500 liras has increased the expectation of additional raises for retirees who earn more than this. Again, increasing the lowest salary of public sector workers to 15 thousand liras with a 45 percent increase, including the welfare share, and President Recep Tayyip Erdoğan’s statements before the election revealed that civil servant salaries will also be increased over inflation in July.

Inflation plus welfare share

In his speech at the 15th Ordinary General Assembly of Hak-İş Confederation, Erdoğan said: “We will arrange the lowest civil servant salary in a way that it will not be less than the lowest public worker salary. As with public workers, we will increase the minimum wage to 15 thousand liras, and we will make a similar increase in inflation and welfare share. Thus, the lowest civil servant salary will reach 22 thousand liras. These increases in civil servant salaries will automatically be reflected in their retirements.”

It was 30 percent in January.

Salaries of civil servants and pensioners are determined according to the retrospective 6-month inflation figures announced in January and July each year. Normally, SSK and Bağkur retirees get a raise at this inflation rate. For civil servants and retired civil servants, the collective agreement hike is first reflected, and then the inflation difference over the collective agreement received in the previous period is reflected. However, in January, welfare share was added to both civil servants and pensioners in order to reduce the inflation burden, and the increase was 30 percent.

Not gross, net 22 thousand liras

The lowest bare civil servant salary is around 12 thousand liras. This salary will first be increased to 15 thousand liras. Thus, the difference of 3 thousand liras between the lowest paid public servant and the lowest paid civil servant will be eliminated with a substantial increase. Then, the inflation difference will be increased to 22 thousand liras with the increase in the collective agreement and the welfare share. It was also discussed whether the amount of 22 thousand liras would be net or gross. However, the Directorate of Communications pointed out that a labor economist speaking to a television channel had inadvertently said that the lowest civil servant salary would be 22 thousand liras in gross, and said, “The lowest civil servant salary in July will be 22 thousand liras net, as stated by President Recep Tayyip Erdoğan.”

It has already reached 15.22 percent

According to the news in Gazetevatan; For the July hike, inflation rates for May and June will need to be clarified. In the first 4 months, cumulative inflation had reached 15.22 percent. In the Market Participants Survey published by the Central Bank; May inflation was estimated at 2.41 percent, while June inflation was estimated at 2.49 percent. If these expectations come true, the first 6-month inflation will be 20.93 percent. In this case, SSK and Bağkur retirees will guarantee a 20.92 percent increase. Civil servants and retired civil servants, on the other hand, will put 18.92 percent increase in their pocket, excluding welfare share, since they receive an 8 percent increase in collective bargaining in the first 6 months and will receive a 6 percent increase in collective bargaining as of July. Considering the increase in public workers, an additional welfare share will come to the fore. Thus, it is foreseen that the total increase to be made for retired and civil servants will be determined between 30-50 percent.

For the first time, a gradual increase came to the fore

It is expected that for the first time, a gradual increase in the pension increase rate will come to the agenda. The increase of the lowest pension, which was 5 thousand 500 liras before, to 7 thousand 500 liras was effective in increasing such a possibility.

Because in this way, about 9 million pensioners who received a salary below 7 thousand 500 liras were given a raise, while the remaining pensioners could not benefit from this increase. According to the statement made by the authorities, a gradual increase will be on the agenda, starting from 7 thousand 501 liras, towards those who receive salaries in the upper group. For example; 50 percent increase for those whose salary is between 7 thousand 500 liras and 10 thousand liras, 40 percent for those whose salary is between 10 thousand liras and 15 thousand liras, 30 percent for those who earn between 15 thousand liras and 20 thousand liras, and finally 21 thousand liras and above. A ladder system like 25 hikes will be created. Of course, the net figures will emerge after the studies of the Ministry of Labor and Social Security.

Lowest civil servant salary

As of January, retired civil servants had obtained an additional indicator increase in addition to a 30 percent hike. There were increases in the salary of the pensioner, whose additional indicator increased from 2200 to 3600, exceeding 3 thousand liras. With this arrangement, the salary of the lowest civil servant pensioner increased from 6 thousand 78 liras to 7 thousand 900 liras in January. This salary is expected to exceed 10 thousand liras as of July.

Will EYT also benefit?

Members of EYT started to submit a retirement petition as of March 3rd. So far, over 1 million EYT members have been paid. From March 3 until July, those who submitted their retirement petition will benefit from salary increases even if the retirement process has not been completed. Those who apply after July will already receive an increased salary. The pension increase of EYT members subject to the Retirement Fund is applied as indexed to the salary increase of actively working civil servants. There is no difference between retiring before or after this month in terms of benefiting from the increase in July. However, the retirement bonuses of public employees are paid on the basis of the civil servant salary coefficient and additional indicator on the date of their retirement. Retirement bonuses of public officials who submitted a retirement petition after 15 July will be calculated according to the increased civil servant salaries in July.

Countdown to collective bargaining

Collective bargaining negotiations concerning public employees and retirees will be held in August. In these meetings, four different hike rates for the years 2024 and 2025 will be determined. One of the issues that will come to the table in the talks here will be the rate of increase for public workers. In the first and second 6 months of 2024, a raise of 10 percent plus inflation rate was foreseen for public workers.

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