How much will be the civil servant and the increase in pensions according to 4-month inflation?

Turkish Statistical Institute (TUIK) data, according to the consumer price index (CPI) of 0.85 percent in April, while the four-month period spanning January to April increased by 03:16 hundred. The increase in the CPI directly affects the retirement pensions of SSK and BAĞ-KUR members. The salaries of public officials and the pensions of retired officials are mainly paid in accordance with the increase in collective agreements. If inflation in the previous six months exceeds the increase in collective agreements in the same period, the difference is reflected in the salaries and pensions of public officials.

The four-month CPI increase is the lowest four-month inflation figure recorded since 2016. Inflation from January to April was 2.55 percent in 2016, 5.71 percent in 2017, 4.69 percent in 2018, and 4.00 percent in 2019.

According to TURKSTAT data, in May, in the ten-year period spanning 2010-2019, inflation was negative twice in May: 0.36 percent in 2010 and -0.21 percent in 2012. In the last decade, inflation decreased in June 2010 (-0.56%), 2011 (-43%), 2012 (-0.90%), 2015 (-0.51%) and 2017 (-0.27%). Over the ten-year period, the average increase in the CPI was 0.66 percent in May and 0.06 percent in June.

Inflation has been on a downward trend since February this year. Inflation is expected to continue to decline annually in the coming period due to declining oil and other commodity prices and an outbreak due to the epidemic. The Central Bank also updated its year-end inflation forecast for 2020 from 8.2 percent to 7.4 percent in its latest inflation report released last week.

THE INFLATION OF 6 MONTHS IS 4 PERCENT OF THE AVERAGE 10 YEARS

If inflation occurs at the averages of the last decade in May and June, inflation will be 3.90 percent in the January-June 2020 period. In this case, inflation in the six-month period will be around 4 percent.

HOW TO REFLECT THE SALARY?

In the event that inflation in the January-June period is 4 percent, SSK and BAĞ-KUR pensions will increase by 4 percent in July. For those who retire after 2000, the lowest SSK pension increased by 50 TL, from 263 lire to 1,313 lire, the lowest BAĞ-KUR salary increased by 62 TL, from 569 lire to 1,631 lire, the pension BAĞ-KUR’s lowest agricultural level is also 58 TL will increase from 1,451 liras to 1,509 liras.

Civil contracts will increase by 4 + 4 percent in January and July in 2020 and by 3 + 3 percent in 2021. If inflation remains at 4 percent, the salaries of public officials and the pensions of retired officials they will only increase by 4 percent. Since there will be no difference in inflation, there will be no increase. In this case, the lowest salary of the official will increase from 144 thousand TL to 3,749 lire with an increase of 144 TL, and the lowest salary of pensioners will increase from 2,569 lire to 2,671 lire with an increase of 102 TL.

In January, SSK and BAĞ-KUR retirement pensions were 6.5 percent, and civil servants’ salaries and pensions were 5.5 percent. 4 points of the increase in the salaries of public officials and the salaries of retired officials, and 1.5 points in the increase in the collective agreement, consist of the inflation difference in the second half of 2019.

Note: SSK and BAĞ-KUR pensions were withdrawn after 2000

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