Statement on Salary Increases from Treasury and Finance Minister Mehmet Şimşek

Treasury and Finance Minister Mehmet Şimşek shared Medium-Term Program targets, the effects of global wars on inflation, and the policies to be followed regarding salary increases during a joint live broadcast on the economic agenda.

Medium-Term Program and Disinflation Process

Treasury and Finance Minister Mehmet Şimşek stated in a joint live broadcast that the Medium-Term Program is binding for the public sector and serves as a guide for the private sector. Minister Şimşek expressed that their primary target is disinflation, but this process is not progressing at the desired speed.

Impact of Global Developments on the Economy

Touching upon the reflections of global wars on the Turkish economy, Şimşek reported that if such conflicts had not occurred, inflation would have been at least 7 points lower today. He noted that wars push energy and commodity prices up, and Turkey has been negatively affected by this picture due to the high inflation environment.

Budget Targets and Growth Expectation

Emphasizing that the budget is the most binding element within the scope of the MTP, Şimşek conveyed that they have demonstrated a more successful performance compared to targets in the ratio of the budget deficit to national income. He noted that they waived a significant amount of revenue by implementing the sliding scale (eşel mobil) system in 2026, and that growth will materialize at the level of 3.3 percent despite external shocks.

Inflation Emphasis on Salary Increases

Clarifying the monthly increases for public employees and retirees, Minister Şimşek stated that, as in the past, the salaries of employees and retirees will always be increased by at least the rate of inflation from now on, and this policy will be maintained.