(MENAFN) On Wednesday, Turkish Labor Minister Vedad Isik Han unveiled significant changes to the country's economic landscape, particularly concerning the minimum wage. Han revealed that starting in 2024, Turkey will implement a monthly minimum wage of 17,002 Turkish liras, equivalent to approximately USD578.31. This announcement signifies a substantial hike of 49 percent from the previously established wage level set just a few months prior in July. Moreover, when juxtaposed with the baseline from January, this increment represents a striking 100 percent surge, underscoring the government's efforts to address economic disparities and enhance living standards for its citizens.

However, this wage hike comes against a backdrop of economic challenges, particularly concerning inflationary pressures. Recent data indicated that Turkey's annual inflation rate ascended to 61.98 percent in November, marking the pinnacle for the year. Although this figure is marginally below earlier projections, it highlights the profound economic turbulence the nation has navigated. It suggests that the aggressive interest rate hikes implemented by the central bank might be starting to yield some efficacy in mitigating rampant demand and stabilizing the economy.

The economic woes trace back to a severe currency crisis that unfolded towards the culmination of 2021, pushing inflation rates to a staggering 24-year peak of 85.51 percent by October of the same year. The ramifications of this crisis have been enduring, with the Turkish lira witnessing a depreciation of approximately 35 percent in its value over the current year. Such a significant decline amplifies the challenges faced by the Turkish populace, particularly exacerbating the cost of living and necessitating bold measures, such as the announced minimum wage hike, to alleviate financial strains.

MENAFN28122023000045015682ID1107664721