Following the last meeting of the Minimum Wage Determination Commission, the minimum wage, which will be effective in 2022, was announced: 4,250 liras. A 50 percent increase in Turkish lira was seen, but decreased by 28 percent in dollar terms. On the other hand, with the increase, the wages of many workers remained below the minimum wage, and the minimum wage became the general wage. He raised the demand for the renewal of collective agreements, especially the public.
While it remains unclear for days when the Minimum Wage Determination Commission will hold its final meeting, the last meeting held at the Ministry of Labour and Social Security for years was held in the Palace this time. Following the last meeting, President Tayyip Erdoğan, Labour and Social Security Minister Vedat Bilgin, Turkish Confederation of Employer Associations (TISK) and Confederation of Turkish Trade Unions (TÜRK-İŞ) representatives held a press conference at the Palace.
TÜRK-İŞ Secretary General Pevrul Kavlak stated that the president has the appreciation and said, "I think we have done a good job, it will satisfy the workers". Kavlak stated that there are some regulations that will affect employees besides the minimum wage.
"I do not say this process is a negotiation process. It wasn't a collective bargaining process, it was a process where we thought about where we were going as partners. We are also pleased to see that steps have been taken that are not in the history of the Republic."
Erdoğan announced that the minimum wage is 4,250 liras net, income from the minimum wage and stamp duty have been abolished. However, there was no explanation for how the lack of taxation on the minimum wage would be reflected in the wages above the minimum wage. Erdoğan also said elections would be held after minimum wage talks next year. "This number increases even more according to the fact that the employee is married and the number of children. Minimum wage growth was 50 percent."
Erdoğan claimed, "No, in the past, the dollar was this, the approach of calculating in dollars and determining the minimum wage is nothing more than the current employee-employer abuse."
TIS DRAFTS MUST BE RENEWED
With the minimum wage, the wages of most workers remained below the minimum wage, while in unionized workplaces, the wages of most senior workers were equalized to the minimum wage.
The report shared by DİSK-AR at the beginning of December stated that 12.4 million people received fees of TL 3,500 and below, while 2.3 million people received between TL 3,500 and $4,650. When the figures are collected, this amounts to 78.7percent of the working population.
In the collective agreement signed for 700,000 workers in August, the average net wage was 4,150 liras. Thus, the wages of 315,000 workers who received 3,500 liras fell below the minimum wage.
Before the minimum wage hike, 30 percent of workers covered by the MESS group contract received minimum wage, which has now risen to 63 percent. The wage of the worker with 8 years of seniority coincided with the minimum wage, in other words, equal to the wage of a newly entered worker.
For some time now, workers from various lines of business, especially metalworkers, have been calling on union administrations to renew their contract drafts.
On the other hand, Kamu-Sen Chairman Ali Yalcin, who explained that they had previously "signed a very good contract", said that "the issue of easing the income tax burden should not be ignored in the arrangements aimed at ensuring justice in the distribution of additional raises/additional payments and income distribution for public officials"
In Bag-Kur, nearly all pensioners were below the minimum wage.
IT WILL COME OUT OF THE POCKET OF THE WORKER
637 liras of the 1425 lira increase in the minimum wage was provided with a 15 percent income tax exemption from the minimum wage. Accordingly, there will be no 15 per cent income tax on the minimum wage and 7.5 per 1,000 stamp duty from bosses.
Speaking about the income tax exemption from the minimum wage, economist Dr. Cem Oyvat explained that "Upon the removal of the minimum wage, income tax and stamp duty, Erdoğan announced that they have saved the employer sector from an additional burden of 450 liras,' which means that a cost of5,400 TL per worker per year should be placed on the state. It's who pays the cost. Looking at the 2020 data of DİSK-AR, we can estimate that the number of minimum wage earners will be around 6.5-9.1 million after the last increase. This means that the tax cut brings an annual cost of about 35-50 billion TL to the public budget. This money will be paid either now or in the future. If it is paid with taxes on non-luxury consumption, the state puts money in one pocket of the citizen and buys money from the other. This money should be funded by taxes on upper income groups. The tax system should become more progressive."
MINIMUM WAGE DECREASED $108
The minimum wage, which was $2,825 in January 2021, amounts to $382, while the minimum wage, which will be applied in January 2022 at 4,250, still amounts to only $274 today. The minimum wage, which seems to have increased by 50 percent in Turkish Lira terms, decreased by 28 percent, or $108, in dollar terms.
DECREASED $16 IN 1 DAY
In addition, the fact that the minimum wage, which would have been $287 if announced in the early hours of yesterday morning, has melted down to about $16 in one day, is a sign that it will soon become much less worthless! (EVRENSEL DAILY)
Hediye Levent
Yusuf Karadaş