Mehmet Şimşek announces inflation-linked wage increases for Turkish retirees and civil servants

Turkish Treasury and Finance Minister Mehmet Şimşek has stated that public employees and retirees will receive wage increases at least equal to the inflation rate. For January 2027, SSK and Bağ-Kur retirees' raises will be determined by inflation in the second half of 2026. Civil servants and retiree civil servants will receive a combination of a 7 percent collective bargaining increase plus the inflation difference.

Based on the Medium-Term Program (OVP) year-end inflation target of 28.4 percent, projections suggest SSK and Bağ-Kur retirees could see a 9.89 percent increase, while civil servants could see a 7.84 percent increase. If these targets are met, the minimum retiree pension could rise to 25,881 lira, and the minimum civil servant salary could reach 75,729 lira.

Addressing broader economic challenges, Şimşek noted that regional conflicts have negatively impacted inflation targets by driving up fuel and petroleum prices. He suggested that without these geopolitical shocks, inflation would likely be at least 7 percentage points lower than current levels. He emphasized that current economic measures have prevented inflation from rising even higher despite volatility in energy and commodity prices.