Inflation Pushes Minimum Wage in Turkey to Rise by 55%

Per CNBC

After Turkey reached an inflation rate of 84.4%, a 24-year high, the country decided to hike its minimum wage by 55% as even basic necessities became almost unaffordable to millions of citizens.

The minimum salary raise is expected to take effect in 2023, requiring businesses to pay at least 8,500 lira, equal to about $455, up from 5,500 lira, equal to about $295, to help deal with the rising prices. Country officials say over 30% of Turkey's workforce earns minimum wage.

In October, the inflation rate hit 85.51% though independent researchers estimate that the official figures are less than the actual price increases felt by the country, per AP News.

Turkey's bureau chief for Middle East Eye, Ragip Soylu, shared how the new minimum wage was the country's highest in the last 20 years. This was designed to help citizens as the prices of goods became almost unaffordable.

Aside from goods, rent has also increased, with citizens saying they can no longer afford to pay for a place to stay because it would deprive them of their food budget. To help prevent prices from drastically increasing, the government imposed a rent increase cap of 25%, which reportedly isn't followed by multiple landlords as they also try to keep up with inflation.

Per another AP News article, independent economists say that inflation reached 170.7% in November. There was also a 20.4% increase in foreigners buying homes from January to November versus the home sale numbers a year before. A majority of foreign buyers came from these countries:

  • Russia
  • Iran
  • Iraq
  • Ukraine

A local real estate agent, Kenan Altinay, said that the rate of price increases was a record for Turkey's real estate industry. Property lawyer Idil Bora also reported a massive increase in eviction lawsuits due to rent disputes.

Altinay: “Each year, we’d see difference of 20% or 25%, but this year, it has reached 200%.”

Bora: “Civil Courts of Peace, which are tasked with dealing with these cases, have such heavy workloads that hearing dates are set for five or 10 months later,”

Resources:

CNBC

AP News

AP News

See flow at unusualwhales.com/flow.

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.