In a bid to shield low-income earners from the impact of high inflation, the Turkish government has announced a 34% increase in the minimum wage to 11,402 Lira, effective from July 1, 2023. This marks the second raise this year, following a 55% increase in January 2023.
The decision to raise the minimum wage was made by the Turkish cabinet and was disclosed by Labor Minister Vedat Isikhan. With over 4 million workers expected to benefit from this increase, it is anticipated that the measure will stimulate consumer spending and have a positive effect on the Turkish economy.
Nonetheless, some analysts caution that the minimum wage hike may contribute to higher inflation. They contend that it could exert upward pressure on wages across various sectors, potentially leading businesses to raise prices.
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The long-term consequences of the minimum wage increase on the Turkish economy remain uncertain. However, it is evident that the Turkish government is taking proactive measures to support low-income earners in coping with the challenges posed by high inflation.
