New minimum wage below lowest public sector salary
THE new gross monthly minimum wage, confirmed this month, is more than 1,000TL less than the lowest salary in the public sector, according to new figures.
After it was confirmed earlier this month that the new gross minimum salary in the private sector had risen from 4,970TL to 7,000TL, Prime Minister Faiz Sucuoğlu announced the “Cost of Living” rate for JulyDecember 2021 as 37.26 per cent, which he said would be reflected in public sector salary pay packets as of this month.
Based on this, the lowest gross salary in the public sector for those with a secondary school education and employed after the introduction of pay reforms in 2010 is now 8,340 TL, while for someone in the same category whose employment began before 2010 the minimum gross salary is now 10,470TL.
The highest gross monthly salary for the head of a government ministry at the top of their pay band is 39,636TL under the old pay system, and 39,290TL for those employed from 2010 onwards.
Economist Göksel Saydam said that the “Income Tax Bill” is of “great importance” regarding the amount of salary that will be earned by public employees.
Pointing out that income tax will be levied on the part of a salary that is above the 7,000TL minimum wage if this Bill is enacted, Mr Saydam noted: “If this Bill is passed, the tax rate will increase to 20 per cent and so public servants’ [net] salaries will decrease.”
Mr Saydam said that the problem in the private sector is “not just about how much” the minimum wage is.
“The wage scale and seniority are also taken into account when calculating public sector salaries,” he said.
“However, there is no such thing in the private sector. Whether an employee has been working for five years or 10 years, they can receive the same salary as a new hire. This is also a serious problem.
“In addition, a person can receive the same salary whether they are a university graduate or a primary school graduate, but this is not so in the public sector. All of these need to be addressed. Experience should be important in every profession.”