Monthly Minimum Wage in Turkey Rises by 49% in 2024

Turkey’s minimum monthly wage for 2024 is set at 17,002 Turkish lira (US$578.31), marking a substantial 49% increase from the July 2023 and a significant 100% surge compared to January 2023, as announced by Labour Minister Vedat Isikhan on 27 December.

The significant increase aims to alleviate the escalating cost of living and affects about one-third of Turkey’s 86 million residents who earn the minimum wage, while the determination of other salary increases is based on the base pay.

The rise is anticipated to contribute to the already high inflation in the country, which reached 62% in November 2023, marking its peak for the year.

The central bank initially anticipated a peak in May 2023 at 70%, and there is now a possibility that it might need to persist in raising interest rates to temper demand.

Additional Information:

• A currency crisis towards the close of 2021 triggered Turkey’s most significant inflation in a quarter of a century at 85.51%.
• In 2023, the Turkish lira experienced a depreciation of approximately 35% of its value against the dollar, further exacerbating the cost-of-living crisis for the Turkish population.
• In an effort to address inflation and the currency crisis, the central bank has recently raised its benchmark rate to 42.5%, marking the seventh consecutive interest rate hike.
• However, indications from the bank suggest that the series of rate hikes might come to an end soon.