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This year, the minimum wage negotiations to be held in the shadow of the Kovid-19 outbreak will also be affected by the measures. Under normal circumstances, the Minimum Wage Determination Commission met separately at the Ministry of Family, Labor and Social Services, with the host of the employee and the employer, and held its last meeting at the Ministry. It was decided to hold the first meeting on December 4 at the Ministry of Family, Labor and Social Services in line with this year’s Kovid-19 measures. Zehra Zümrüt Selçuk, Minister of Family, Labor and Social Services, made a statement before the negotiations of the minimum wage increase and said: “As a Ministry, our aim is to determine the minimum wage with the agreement of our employees and employers assuming the role referee in this process. I think it will be determined at the level. ” said. So how much will the minimum wage increase be? Here are the 2021 minimum wage figures according to scenarios …
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MINIMUM WAGE TIME SCENARIOS ARE DETERMINED FOR 2021
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The Central Bank revised its inflation forecast for 2020 to 12.1 percent. If an increase is made accordingly; gross 3 thousand 299 lire 10 kuruş, net 2 thousand 605 lire 98 kuruş.
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If the rate of increase is 15 percent like last year, the gross minimum wage will be calculated at 3 thousand 384 lira 45 kuruş and the net minimum wage at 2 thousand 673 lira 40 kuruş.
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If 3 welfare points are added to the Central Bank’s inflation forecast for 2020; The gross minimum wage will be 3 thousand 387 lira 39 kuruş, the net minimum wage will be 2 thousand 675 lira 72 kuruş.
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If a 4 point wellness share applies; 3,416 gross lira will be calculated as 82 kuruş, 2,698 net lira 97 kuruş.
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If 5 social participation points are added, the minimum wage will increase a little more. In this possibility, the gross minimum wage will be 3,446 lira 25 kuruş, and the net minimum wage will be 2,722 lira 22 kuruş.
THE FIRST SUGGESTION COMES FROM THE DISC
The workers’ confederations Türk-İş, Hak-İş and DİSK act together in the negotiations on the increase. While Türk-İş has yet to announce a figure for the minimum wage increase, the worker’s first suggestion came from DİSK. DİSK President Arzu Çerkezoğlu said the net minimum wage should be at least 3,800 lira.
“MINIMUM COST OF TURKEY ENTERING THE COMPANY”
Çerkezoğlu shared the research on minimum wage prepared annually by the DİSK Research Center (DİSK-AR). The summary of the report published under the title “Minimum Wage Reality Survey-2021” is as follows:
The minimum wage is a question of millions. While millions of workers, millions of workers are sentenced to the minimum wage, in Turkey it is illegally deprived of the minimum wage. The minimum wage refers to the maximum number of workers. The minimum wage is gradually becoming the average wage, the average wage decreases to the level of the minimum wage.
“THERE ARE 3.3 MILLION EMPLOYEES WORKING UNDER THE MINIMUM WAGE”
3.3 million workers (17 percent of all wage earners) work with less than the minimum wage. The number of workers working for less than half the minimum wage is close to a million. The number of workers who must live on the minimum wage or less is around 7.5 million (38.3 percent of all wage earners).
“THERE ARE 10 MILLION WORKERS WORKING AROUND THE MINIMUM WAGE”
The number of workers earning 20 percent above or below the minimum wage is 9.7 million. Almost 50 percent of all wage earners are in this area. 64 percent of all wage earners (12.5 million workers) earn between less than the minimum wage and one and a half times the minimum wage.
“THE NUMBER OF THOSE WHO HAVE TO LIVE BELOW THE MINIMUM WAGE INCREASED”
With the Covid-19 epidemic, significant losses in wages were experienced and the number of people earning income below the minimum wage increased. Those who are on compulsory unpaid leave with an allowance of 1,168 TL are forced to live on an income equal to half the minimum wage. With the epidemic, it can be said that the number of those who have to live with an income below the minimum wage has increased, considering those who were sentenced below the minimum wage with a short-time benefit and an unpaid leave subsidy, unregistered workers who lost their jobs.
“22 PERCENT OF WORKERS IN THE PRIVATE SECTOR DO NOT REACH THE MINIMUM WAGE”
21.7 percent of private sector workers cannot meet the minimum wage. In the private sector, the rate of those who work with the minimum wage and below is 49 percent and the rate of those who work around the minimum wage is 62 percent. About 9.5 million private sector workers work at 20 percent or less of the minimum wage.
“FACE-TO-FACE WOMEN WITH MINIMUM WAGE DISCRIMINATION”
While the rate for those who cannot meet the minimum wage is generally 17 percent, this rate is above 25 percent for women. While the proportion of those receiving a minimum wage and a lower wage is 38 percent overall, it rises to 49 percent for women. Half of the women work for the lowest and lowest wages.
32.5 per cent of female workers in the private sector are employed at wages below the minimum wage. 9.3 percent of female workers in the private sector are forced to work for less than half the minimum wage. In the private sector, the proportion of female workers who have to work between well below the minimum wage and 20 percent more than the minimum wage rises to 76 percent.
“THE MINIMUM WAGE BECOMES AVERAGE WAGE”
Wages are falling to the level of the minimum wage. While in 2006, the average monthly salary and wage income was about 2 times the minimum wage, it fell to 1.41 times the minimum wage in 2019.
The minimum wage, which was 3.4 percent above the national income in 1978, fell 40 percent below the national income per capita in the last 42 years. If the minimum wage increased in parallel with the per capita income, the gross minimum wage should have been TL 4,995, not TL 2,943 in 2020.
“TURKEY AMONG THE COUNTRIES IN EUROPE WHERE IS THE LOWEST MINIMUM WAGE”
In 2010, while 12 countries have the lowest minimum wage in Europe since Turkey, this number dropped to three in 2020. Countries with the lowest minimum wage are Turkey, Serbia, Bulgaria and Albania. However, in November 2020, and taking into account the current exchange rate of the minimum wage in Turkey in December, with the exception of Albania, it is clear that the lowest minimum wage in Europe.
“A MINIMUM WORKER WORKS FOR TAXES 122 DAYS A YEAR”
When we consider indirect and direct taxes and deductions from the gross minimum wage, 33.4 percent (983 TL) goes to taxes and deductions. The worker receives only 66.6 percent of the gross minimum wage (including the AGI) as net disposable income. The worker works 122 days out of 365 days for taxes and deductions.
HOW IS THE MINIMUM WAGE DETERMINED?
The minimum wage is determined by the Minimum Wage Determination Commission, which consists of 15 people, 5 representatives of each employee, employer and the government. The Commission meets four times to determine the new minimum wage.
The commission, chaired by one of the members determined by the Ministry, meets with the participation of at least 10 members and decides by majority vote. In case of equality of votes, it is accepted that the side of the president has the majority.
THE SECOND MINIMUM WAGE TIME MEETING IS DECEMBER 15
The Minimum Wage Determination Commission, made up of workers, employers and government representatives, will hold its second meeting on December 15, as part of efforts to determine the minimum wage that will be valid in 2021. Zehra Zümrüt Selçuk, Minister of the Family, Labor and Social Services, shared the working hours of the Minimum Wage Determination Commission on his social media account.
Consequently, while the Commission works to establish a new minimum wage, the second meeting of the Confederation of Turkish Employers’ Associations (TISK) hosted on December 15, the third meeting of the Turkish Confederation of Trade Unions of Turkey (Türk- İş) will be held on December 22 at home.
The meeting in TİSK will also be held online. The method of organizing the meeting in Türk-İş and the date of the fourth and last meeting will be clarified in the coming days.
