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Employer revised his wage increase plan upwards

Employer revised his wage increase plan upwards While the minimum wage was increased by 21.

Employer revised his wage increase plan upwards

While the minimum wage was increased by 21.56 percent, the Central Bank also discussed the effect of wage distribution and wages on inflation in the country. According to the research based on interviews with companies, the average wage increase planned by the employers for 2021 was 14.2 percent before the minimum wage increase, while the average wage increase planned after the announcement of the minimum wage increased to 21.8 percent.

The report also revealed that in some sectors, the ratio of those earning minimum wage and below to total employees exceeded 72 percent.

The Central Bank Governor Naji inflation in the first report of 2021 released by the Ağbal "Fees and Fare Distribution Effect of Inflation in Turkey" were given a survey on the ground. Turkey in wage developments of one of the most important indicators that are monitored in terms highlighted in the report that the minimum wage, the minimum wage, demand as well as to greatly affect inflation with cost channel, as well as as reference for the private sector wage increases were noted.

The Turkey Statistics Institute (TSI) in the Household Labor Force Survey (LFS) Total net cash gained from person to work primarily in incomes over the last month asked. In the research of the Central Bank, based on the micro data of the survey conducted by TURKSTAT in 2017, 2018 and 2019, the ratio of employees working with minimum wage and below according to selected sectors and the share of personnel cost in the production value were calculated.

In the study, those working with a wage of 10 percent below or above the minimum wage were accepted as the minimum wage. Those who work with less than 10 percent of the minimum wage were evaluated as less than the minimum wage.

Accordingly, 42.8 percent of the wage earners working in non-agricultural sectors consist of the minimum wage and below. This rate was calculated as 50.0 percent in industrial sector, 53.9 percent in construction and 39.1 percent in services.

72 OUT OF 100 WORKERS IN CLOTHING AND TOURISM WORK WITH A MINIMUM WAGE AND UNDER WAGE

Although the ratio of employees with minimum wage and below wage in the service sector seems lower than the other main sectors, it was emphasized that it differs significantly in terms of sub-items. For example, this rate reaches 72 percent in accommodation and food services. Since public employees also enter the service sector, the average rate in the service sector seems low.

When the minimum wage and below employees in the manufacturing industry are examined, it seems that the ratio of minimum wage and below employees in the clothing, textile, food and leather sectors is higher. The highest rate of employees with minimum wage and below was recorded in the clothing sector with 72.2 percent.

THE MOST SENSITIVE MINIMUM WAGE ACCOMMODATION AND FOOD SERVICES

With the sector about sensitivity to minimum wage in the calculation of cost-side inflation pressure

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29 Oca 2021 - 11:00 -


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