The minimum wage for 2021 was about 2825 liras per month, and its value fell against the dollar to 185 dollars, compared to up to 380 dollars at the beginning of the year due to the currency crisis, the second of its kind in Turkey within 4 years.
“With this wage increase, I think we have shown our determination to protect our employees from collapse in the face of rising prices,” Erdogan said, adding that wages would be the highest ever.
He also mentioned that the government will raise taxes on the minimum wage to ease the burden on business owners.
Inflation jumped above 21 percent last month and is expected to reach 30 percent next year, in large part due to a weaker currency, which boosts import prices.
Erdogan was speaking after the central bank again cut the interest rate by 100 basis points to 14 percent as part of its New Economic Programme, which focuses on exports, credit and growth ahead of the 2023 elections.
The lira plunged 5.6 percent to a record low of 15.6890 against the dollar after the interest rate cut.
Erdogan said: “Our currency is well known, the lira, and we will not let it collapse. We are determined to put an end to the prevailing ambiguity as a result of fluctuations in exchange rates and high prices as soon as possible.”
The collapse of the lira turned the budgets and plans of Turkish families upside down, while the rise in prices in all sectors led to angry reactions.
Erdogan said that stability will be secured by taking new measures in the coming days, but he did not specify the nature of these measures.
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