Turkey considers major salary increases for retirees and civil servants

Economic discussions in Turkey are centering on potential salary adjustments for retirees, civil servants, and minimum wage earners for 2027. Reports from Ankara suggest the government is preparing a one-time, significant salary increase package for all retirees to bolster purchasing power against high inflation.

Projections for January 2027 salary increases are being shaped by updated inflation forecasts. The Central Bank of the Republic of Turkey has revised its year-end inflation estimate to 28%, while market participant surveys suggest a higher expectation of approximately 29.43%.

Based on these scenarios, SSK and Bağ-Kur retirees could see increases ranging from roughly 8.70% to 10.67%. For civil servants, estimates suggest a raise between 6.67% and 7.91%, which could push the lowest civil servant salary above the 75,000 TL threshold.

In tandem with these discussions, the government has introduced financial support measures for the real sector, including 250 billion TL in industrial credits and increased limits for investment-committed advance loans. Additionally, Ziraat Bank has announced a 3-point interest rate reduction to facilitate economic easing.