ITO/Avdagiç: Wage Increases Based on 'Target Inflation' Will Yield Positive Results

Forex - In his evaluation regarding expectations for the minimum wage increase, İTO President Şekib Avdagiç stated, "In our opinion, an increase in wages, considering the 'targeted inflation', will yield positive results in many areas, from pricing behaviors to expectation management and demand balance."

In his speech at the December Assembly meeting, Avdagiç noted that the Istanbul Chamber of Commerce (İTO) is one of the largest employer organizations in Turkey with its 817,000 members, and emphasized that they are closely monitoring the discussions regarding the minimum wage.

Recalling that approximately 7 million people in Turkey work for the minimum wage according to the Social Security Institution data, Avdagiç highlighted that this number should converge along a line that serves the common interest of all segments of society when determining the new minimum wage.

• "The minimum wage impacts salaries for C-Level positions as well"

İTO President Avdagiç remarked that the minimum wage is a fundamental element of production, stating that keeping it at a reasonable level is extremely important for both employees and employers. He continued, "For us, the minimum wage is not merely an issue of setting a base wage. There are many items associated with it, from unemployment benefits to social security premiums, and from severance pay to internship wages. The minimum wage affects salaries for C-Level positions as well. We believe that an increase in wages, considering the 'targeted inflation', will yield positive results in many areas, from pricing behaviors to expectation management and demand balance. We find it important to determine a minimum wage increase rate that both sides, workers and employers, can agree upon throughout the year, in line with the perspective put forth by economic management."

Furthermore, he stated that the adjustment of income tax brackets should be kept on the agenda, as it would both increase purchasing power and ease the financial burden on employers, thereby reducing unregistered employment.