Government Announces New Cost-of-Living Model Following Decree Withdrawal

In a written statement, the Prime Ministry explained that global economic disruptions caused by conflicts in the Middle East have affected the local economy through supply chain issues, energy price surges, and contractions in purchasing power. The ruling coalition—comprising the National Unity Party, Democratic Party, and Rebirth Party—stated that from the start, it has taken steps to protect citizens’ welfare and maintain societal consensus.

The statement also criticized opposition parties and some public sector union leaders for politicizing the process instead of participating in constructive dialogue.

“Decree Withdrawn As It Is Superseded By New Proposal”

The government clarified that the previous decree had been rendered obsolete by the new proposal and was formally withdrawn through publication in the Official Gazette.

As part of the revised plan, the COLA for June will be calculated and 50% of the resulting increase will be paid immediately, while the remaining 50% will be held in reserve to be distributed by January 2027 at the latest. The government emphasized protection for low-income citizens, ensuring retirees and those earning a net salary of 75,000 TL or less will see no reductions. For those earning above 75,000 TL, only up to 50% of the June cost-of-living increase will be applied, without dropping any citizen below the 75,000 TL threshold.

The government described the model as balanced and fair, aiming to safeguard both citizens’ welfare and social consensus. Officials said the plan would be presented to the Assembly with the goal of securing broad agreement.

The statement concluded that the government remains committed to dialogue and public welfare, and will reassess and adjust measures as regional stability in the Middle East improves.