Minimum wage raise to increase Turkey’s GDP by 0.4 points: Economy minister
AA PhotoThe planned raise in the minimum wage will make around 0.4 points contribution to Turkey’s gross domestic product (GDP) growth, Economy Minister Mustafa Elitaş said in a televised interview on Dec. 18.
“There are over 5 million registered minimum wage earners in Turkey. With the planned raise in the minimum wage to 1,300 liras, a positive contribution of around 9.5 billion liras will be made to Turkey’s economy, adding 0.4 points GDP,” Elitaş said on BloombergHT, adding that this could boost Turkey’s GDP growth to 4 percent in 2016.
He also stressed that the government would not allow this raise to create a “permanent soaring effect” on inflation.
The Minimum Wage Determination Commission met on Dec. 2 to discuss the planned rise in the wage of around 6 million workers in Turkey and negotiations are still underway.
As part of its pledges ahead of the Nov. 1 general election, the winning Justice and Development Party (AKP) vowed to increase the minimum wage from around 1,000 Turkish Liras to 1,300 liras. The newly elected cabinet subsequently said it would submit the proposal to the Minimum Wage Determination Commission, after several employers expressed objections to the plan.