Hasipoğlu: We Increased the Minimum Wage Fivefold in Five Years

Labour and Social Security Minister Oğuzhan Hasipoğlu reacted to the main opposition CTP’s criticism of Prime Minister Ünal Üstel’s remarks on the cost of living.

In a social media post, Hasipoğlu recalled Üstel’s comments on government projects and achievements, in which the prime minister said: “Although incomes have increased, we see the difficulties people are experiencing in their homes. We are facing the high cost of living together with our people.”

Hasipoğlu said the statement had been criticised by the main opposition, arguing that CTP had forgotten periods in the past when it froze cost-of-living-based payments and paid salaries in instalments.

He said the government had not allowed minimum-wage workers to be crushed by the rising cost of living, noting that an additional TL 12,000 contribution had been provided to minimum-wage earners this year and that the increase in the minimum wage had been kept above the rate of inflation.

Hasipoğlu said they had increased the minimum wage fivefold over the past five years, adding that they had raised the minimum wage above the European average in foreign-currency terms and brought per capita national income to its highest level in history.

“THERE IS NO CONTRADICTION BETWEEN INCREASING THE MINIMUM WAGE AND CITIZENS BEING AFFECTED BY THE COST OF LIVING”

Hasipoğlu said the main opposition CTP was overlooking an important point, arguing that there was no contradiction between increasing the minimum wage fivefold and acknowledging that citizens were being affected by the rising cost of living.

“On the contrary, the main purpose of the increases we have made to the minimum wage is to protect our workers’ income and purchasing power against changing economic conditions,” he said.

Hasipoğlu said they did not view working life solely through the lens of wage increases, stressing that while wages were being raised, it was equally important to keep businesses afloat, protect employment and create new jobs.

He said they had increased support for the workforce, adding that the monthly volume of support reaching approximately 80,000 workers had been raised to around TL 400 million.

“MANY SECTORS BENEFIT FROM THE SUPPORT”

Hasipoğlu listed the sectors benefiting from the support as follows:

• Agriculture
• Livestock
• Manufacturing and production
• Automotive industry
• Construction
• Transport and freight
• Services
• Restaurants, eateries and cafes
• General trade
• Hotels
• Barbers, hairdressers and beauty centres
• Pharmacies
• Accounting services
• Nurseries and study centres
• Medical analysis laboratories
• Cooperatives engaged in production
• Associations
• Professional unions
• Chambers

Hasipoğlu said premium support for these sectors was continuing, adding: “The monthly contribution of TL 400 million coming out of our ministry and being channelled into this volume is something CTP could not even have dreamed of being able to provide, let alone actually provide.”

“A FIRST IN WORKING LIFE: WAGE SUPPORT”

Hasipoğlu said new support measures had also been introduced for young citizens of the TRNC who would be insured for the first time, announcing that they would receive 100% premium support as well as monthly wage support of TL 35,000.

He said support covering up to 80% of social insurance premiums was being provided for female workers and up to 60% for male workers.

For the employment of people with disabilities, he said 100% premium support was being provided for up to 48 months, along with wage support equivalent to 50% of the minimum wage.

Hasipoğlu also said additional support mechanisms had been established for strategically important sectors in terms of employment, including manufacturing, production, agriculture and livestock, and tourism.

“WE SUPPORTED BOTH SIDES OF WORKING LIFE”

Hasipoğlu said the policies implemented had both protected workers’ wages and ensured that the state assumed part of the additional costs that wage increases placed on employers.

He said the aim was to prevent wage increases from resulting in layoffs, informal employment or businesses downsizing.

“Therefore, seeing that our citizens are affected by the rising cost of living today does not mean accepting that the policies we have implemented so far have failed. On the contrary, it means recognising that the state must produce new measures as economic conditions change,” Hasipoğlu said.

“We did not say, ‘We increased the minimum wage, and our job is done,’” Hasipoğlu said, adding: “We increased wages, supported employment and transferred hundreds of millions of lira directly to the workforce in order to protect the sustainability of working life.”

Hasipoğlu also said the employers’ union had not objected to the latest minimum wage because of the incentives provided.

“WE WILL RESTRUCTURE THE MINIMUM WAGE LAW”

Hasipoğlu announced that they would amend the Minimum Wage Law in the coming period and restructure the existing system.

He said new forms of support that would directly affect household budgets and citizens’ daily lives would also be introduced, adding that they would continue efforts to tackle the rising cost of living.

Hasipoğlu concluded his statement by saying:

“Because the issue is not only how much the wage has increased; it is about being able to protect our citizens’ income, jobs and the sustainability of working life together.”