Turkey Faces Public Backlash Over No Mid-Year Minimum Wage Hike

As inflation erodes earnings, Turkey’s decision to skip a mid-year minimum wage hike has triggered strong political and public reactions. Bloomberg reported on June 27 that President Recep Tayyip Erdoğan’s government may resist salary adjustments. Although inflation hit 35.4% in May 2025. The minimum wage, set at 22,104 liras in January 2024 after a 30% increase, has lost significant value. Economists estimate its real purchasing power has fallen to 19,000 liras, pushing citizens close to poverty. As the dollar equivalent dipped from $626 to $554, sparking stronger demands from workers for livelihood protection.

Minimum Wage Hike Builds Political Pressure on Erdoğan’s Government

President Erdoğan is facing mounting political pressure, not just from opposition parties but also within his ruling coalition. CHP leader Özgür Özel delivered a strong critique at the “Defend the National Will” rally in Esenler. He highlighted that inflation had quickly eroded the value of the current wage, saying even official figures show a sharp fall in real income. Özel warned that if no adjustment is made in July, workers will drop below last year’s crisis level of 17,000 liras. 

Lawmakers from the AKP and MHP have also expressed concern. Journalist Hilal Köylü reported that many coalition members believe “the knife has hit the bone.” This internal dissent has led to a special consultation mechanism between Erdoğan and Finance Minister Mehmet Şimşek. However, insiders reveal that the economic outlook remains tight. The government faces slowing production, falling investment, and a deepening budget crisis, making a wage hike unlikely for now.

Investors Welcome Decision, But Turks Pay the Price

Skipping the minimum wage hike may please foreign investors, who view salary restraint as a sign of economic discipline. Turkey’s central bank is targeting inflation of 24% by year-end, and officials worry another pay hike could fuel inflation again. Previous salary hikes, while politically popular, increased domestic demand and made it harder to control prices. For investors, this move signals a commitment to long-term stability over short-term relief. In Turkey, more than one-third of the workforce depends on the minimum wage. This leads to high pressure on the government.  As the Turkish lira continues to dip, the economy is getting weaker, resulting in no hike in wages. While markets may react positively, households feel abandoned.

Özgür Özel Demands Immediate Action On Minimum Wage

Özgür Özel remains one of the most vocal critics of the government’s wage policy. He argued that the situation is worse than last year and warned of deepening poverty if no action is taken. Addressing citizens, he asked how they are expected to survive with wages that don’t even match last year’s levels. His call for a minimum wage of 30,000 liras, or $752, has gained support across opposition benches.

The Confederation of Progressive Trade Unions of Turkey (DISK) has also spoken out. They insist that wages should reflect real market prices, not hopeful projections. Their recent statement emphasized how high inflation in 2025 has transformed wage discussions. The union believes that ignoring this economic reality threatens both household welfare and national morale.

Government Signals Caution Amid Fiscal Constraints

Labor Minister Vedat Işıkhan offered a guarded response to the public outcry. He said the government would act if economic conditions worsen, but made no promises. Işıkhan addressed the growing uncertainty with cautious optimism. “We are responsible for preserving citizens’ purchasing power,” he said in a press interaction. “If negative scenarios emerge, we’ll reconsider the minimum wage in July. If there’s a need, we’ll act.”

Still, many believe the time for caution has passed. “What more do they need to see? My salary doesn’t even last two weeks,” said Ayşe Demir, a factory worker in Bursa. The summer ahead could test the government’s resolve and its connection with everyday Turks, more than any economic figure.