In 2021, the consumer price index (CPI) increased by 36.08% per year. The minimum wage has been increased by 40% gross and 50% net. Salaries for civil servants, on the other hand, increased by 30.95% with the difference in inflation in the second half of last year, in addition to the 7.5% increase in the collective agreement. In the first quarter of the year, the increase in the CPI was 22.81%.
Unless there is an intermediate increase, the minimum wage will be applied throughout the year. The salaries of civil servants, on the other hand, will be increased by 7% in the July collective agreement, after having reflected the difference in inflation in the first half of this year.
Whether there will be an interim minimum wage increase in July has been publicly debated for some time. Representing all service branches in collective bargaining with the government, OFFICER – President of the Confederation SEN Ali Yalçın, while answering our questions on the interim stimulus talks, suggested setting up the ladder-sliding system, as in the past, in order to protect employees against high inflation. Stating that inflation was not so high in the past, but now there is high inflation, Yalçın said:
“In such periods of inflation, you don’t have to wait 6 months to receive the increase and the difference in inflation. Inflation differences must be paid monthly or in quarterly installments at the latest. The difference must be paid every 3 months, otherwise once a month. Otherwise, the purchasing power of employees decreases or even disappears. Salaried prisoners and low-income people are crushed by high inflation. Purchasing power decreases. Income distribution is deteriorating.
Ali Yalçın said that the inflation difference appeared in the third, fourth and even sixth months after the salary increase, and now the inflation difference has occurred since the first month.
HOW WAS EŞEL – MOBILE APPLIED?
In 1997, when the 54th government under the presidency of Necmettin Erbakan was in power, the monthly scale – rolling system began to be implemented in collective agreements in the public sector. With the collective agreement, salaries were increased by 84.4% during the first half of 1997 on average. In the period following the first six months, it was decided to increase salaries each month by the monthly inflation rate. The Eşel mobile application was set up during the civil servants’ collective agreement covering the years 1997-1998.
|Annual CPI increase before and after mapping (1994 = 100)|
|Annual increase (%)|
Civil servants’ salaries were increased by 30% on January 1, 1997. However, with a second regulation issued in April 1997, a further increase of 18 to 40 per cent was made to civil servants’ salaries in force on December 31, 1996, at new from 1 January 1997. For the second half of the year, an increase of 35% was made, starting from 1 July 1997.
In 1998, when the 55th government led by Mesut Yılmaz was in power, the salaries of civil servants were increased by 30% in the first half. In addition, a further 18 percent improvement was made to teachers’ salaries and an increase at variable rates was made to overtime and special duty police pay. The salaries of civil servants were increased by 20% for the period from July 1 to September 30, 1998 and by 10% for the period from October 1 to December 31, 1998.
In other words, between 1997 and 1998, monthly increases were made for civil servants and quarterly increases for civil servants.
|Evolution of net charges before and after Eşel mobile|
|Index of real net wages (1994 = 100)|
|private sector worker||91.7||93.4||90.6||105.9||118.2|
|Actual Percentage Change|
|private sector worker||-8.3||1.9||-3.0||17.0||11.6|
|Source: Year 2001 Program (Public Employers Unions, TİSK, Ministry of Finance, National Institute of Statistics, National Planning Organization|
WHAT WERE THE ACTUAL COSTS DURING THE IMPLEMENTATION OF EŞEL – MOBILE?
Turkey had to live with high inflation in the 1990s due to the 1994 crisis. The consumer price index (CPI) based on 1993 increased by 76% in 1995, by 79.8% in 1996 , 99.1% in 1997, 69.7% in 1998 and 68.8% in 1999.
The index of real net wages, which was 100 in 1994 due to high inflation, fell to 62.2 for workers in the public sector and to 93.4 for workers in the private sector in 1996. On the other hand, it rose to 102.5 for civil servants and 110.6 for the minimum wage.
In 1997 and 1998, the index was achieved at 74.1 and 73.1, respectively, when the sliding scale system was applied to public officials. Among workers in the private sector, it was 90.6 and 105.9. A fall in the index means that wages fall in real terms in the face of inflation.
After the end of the Eşel mobile application in 1998, the index in question was 103.8 for public workers, 118.2 for private sector workers, 123.1 for civil servants and 154.9 for salary minimum.
While salaries of civil servants decreased by 17.1% and 25.0% in real terms in 1995 and 1996, they increased by 19.2% in real terms in 1997 and decreased by 1.3% in 1998 .
YALÇIN: NOT EVERYONE HAS 3600 ADDITIONAL INDICATORS
OFFICER – SEN President Ali Yalçın answered our questions on 3600 additional indicators. Yalçın argued that teachers, police, nurses and religious leaders, who should receive an additional 3,600 indicators, constitute about 80% of public employees, and it would not be fair to exclude other public employees.
However, stating that 3600 additional indicators cannot be given to everyone, Yalçın said that the additional indicator should be increased gradually. Yalçın said that increasing the additional indicator alone would not make sense, and the reflection rate of compensation should also be increased. Ali Yalçın noted that with 3600 additional indicators and the new pay reflection rate, there will be an increase of around 1300 TL in teachers’ pensions.
Stating that they will hold another meeting in May, Yalçın said that the service branches met separately with the Ministry of Labor and Social Security and explained their opinions and suggestions on their own areas.