Debate on the salary increase for retirees – Last Minute

(İSTANBUL) – Labor economics expert Prof. Dr. Aziz Çelik said, “They have leveled the retirees at the bottom. The government is discussing whether to raise the salaries of millions of retirees whose basic monthly salaries are below 10 thousand liras. They are trying hard not to raise the salaries of approximately 2 thousand or 2 thousand 500 liras.”

Labor economics expert Prof. Dr. Aziz Çelik made a statement on his social media account regarding the expected increase in retirement salaries. Çelik noted the following:

“They have equalized the retirees at the bottom. The lowest pension patch is also not working. The government is discussing whether to increase the salaries of millions of retirees whose basic salaries are below 10 thousand liras. They are trying hard not to increase the salaries of approximately 2 thousand or 2 thousand 500 liras. The reaction is great. They will have to do it. Otherwise, millions of retirees will receive a zero or lower-than-inflation raise, but this raise will not be a solution to the problems of retirees. The lowest pension (top-up process) is a patch application initiated by the AKP in January 2019 due to the fact that pensions have hit the bottom (Additional Article 19 of Law No. 5510). However, this application does not provide retirees with a minimum monthly salary that will allow them to live humanely, and it has equalized all pensions at the bottom. While the average pension was twice the lowest pension in 2019, it decreased to 16 percent more in 2024.

“Allow resources to pensions at the rate of EU countries”

Just like the minimum wage, they have equalized the pensions at the bottom. With this system, no additional resources are transferred to the retirees from the budget/GDP. It is taken from the retiree above and given to the retiree below. As a result, the retirees are impoverished. The real reason for the decrease in pensions is the AKP’s reduction of the monthly connection rate (ABO) and the update coefficient. In short, it is the counter-revolution numbered 5510 dated 2008. It will not happen with a patch. An adaptation law should be enacted and the ABO and update coefficients should be increased to their former levels. The lowest pensions and other pensions should be raised to a level that will allow for humane living and balanced. The way to do this is simple. Just transfer resources to pensions at the rate of EU countries. The share of GDP allocated to pensions in Turkey is around 4.1 percent, while it is 9.5 percent in EU countries. The solution is not a patch, but more public spending for pensioners.