Economy Turkey faces $3bn payout for pensioners and wage support By Pramod Kumar January 16, 2025, 11:49 AM Reuters/Cagla Gurdogan A currency exchange office in Ankara. Turkey's government is planning a second pension payment increase in June this year Turkey will have to pay out an estimated TL110.8 billion ($3.12 billion) after increasing minimum pension payments and wage support to companies. Vedat Isıkhan, the labour minister, announced on January 7 that the minimum monthly state pension would be increased by 15.75 percent, taking the base rate payment to TL14,469 ($409). Nearly 3.87 million pensioners will benefit from the latest increase in pension payments, costing the government exchequer an annual TL47.7 billion, Reuters reported, citing an impact analysis report by President Tayyip Erdoğan’s ruling AK Party. The change in the wage support programme will cost the government TL63.13 billion annually, the report said. A second pension payment increase, forecast to be around the same level as the January hike, is scheduled for the end of June this year. Turkey to build low-cost housing to ease rent pressures Poorest parts of Turkey to get $14bn investment Turkey plans ‘landmark’ rate cuts in 2025 says Erdoğan This would bring the rate of pension growth in line with that of the minimum wage, which was increased by 30 percent as of January 1 to TL22,104. With inflation forecast by the government to rise by 21 percent this year, the labour minister said the welfare of pensioners, and those on the minimum wage, would improve. Inflation in Turkey eased more than anticipated in December 2024, reaching 44.4 percent, the lowest level in 18 months, according to the Turkish Statistical Institute (TurkStat).