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[BUSINESS] · Türkiye · 19 sources

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Mehmet Şimşek: Public employee and retiree salaries to rise at least by inflation

Turkish Treasury and Finance Minister Mehmet Şimşek has announced that salary increases for public employees and retirees will be at least equal to the inflation rate to protect purchasing power. This commitment is part of the government's ongoing disinflation program and Medium-Term Program (OVP).

Şimşek noted that while the disinflation process has begun, global geopolitical tensions and wars have significantly impacted inflation. He stated that if these conflicts had not occurred, inflation would be approximately 7 percentage points lower. He highlighted that energy shocks, including a 97 percent increase in diesel prices and a 160 percent rise in natural gas prices in dollar terms, have exerted upward pressure on costs.

Regarding fiscal policy, Şimşek announced that the 'eşel mobil' fuel price adjustment system will not be extended into the 2027 budget, though it will partially continue for diesel until the end of the year. He also provided economic outlooks, projecting a 3.3 percent growth rate for 2026 and a budget deficit of 3.1 percent of GDP. He emphasized that the OVP remains a binding policy framework for the public sector and a strategic roadmap for the private sector.

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Central Bank of the Republic of Türkiye · Medium Term Program · Medium-Term Program · Mehmet Şimşek · Ministry of Treasury and Finance · Turkey

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9 days ago