How will the root salary mess end? Here are all the suggestions on the agenda

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Lerato Khumalo

The root salary issue, which is on the agenda of millions of retirees, has come to the fore again as the January raise approaches. According to the Financial Institutions Association’s forecast, the scenario of a 10.45 percent increase in the salaries of SSK and BAĞ-KUR retirees in January 2027 stands out. If this prediction comes true, the lowest pension, which is currently 23 thousand 552 liras, will reach approximately 26 thousand 13 liras. However, legal regulations need to be made in order for this increase to be reflected in the lowest monthly salary. Since the root salary is low, the increase that will be received by the retiree who has reached the legal base salary and the retiree whose root salary is slightly above this limit may not be the same. Additional adjustments to the minimum pension increase the amount of money available to some retirees more than others, while salary differences based on premiums and work history are becoming increasingly complex. So, what ways are being discussed to solve this problem permanently? We have compiled the highlights of the proposals in the Parliament and the regulations that have been brought to the agenda so far.

THE BASE SHOULD BE CONNECTED TO THE MINIMUM MONTHLY WAGE

One of the prominent suggestions is that the minimum pension should be tied to a pre-announced criterion, instead of being determined by a separate law in each increase period. In this approach, the issue is that the base salary should not fall below the net minimum wage and should be automatically updated at regular intervals.. A concrete step in this direction was presented to the Parliament. A bill submitted last October 16 envisages increasing the lowest pension to the level of the net minimum wage. The proposal was referred to the Planning and Budget Commission on October 19; has not yet become law.

ROOT SALARIES CAN BE RESCALCULATED

Another solution is to review the rules used in calculating pensions. Monthly rates, working hours, number of premium days and reported earnings are among the basic factors that determine the retiree’s base salary. It is desired to reduce the differences created by this calculation between those insured in different periods. In this context, reorganizing the method of calculating pensions and strengthening the relationship between premium payments and pensions are discussed. The aim is to support those with low monthly salaries, while those who work longer and pay more premiums can see the reward in their salaries.. The scope of this option is wide. A change in the monthly pension formula concerns not only those who are currently retired, but also those who continue to work and those who will retire in the future.

ADJUSTMENT REGULATION IS ON THE AGENDA AGAIN

Adjustment regulation is also one of the options on the agenda to eliminate the monthly differences between those who retire on different dates. Adjustment aims to reduce significant salary differences arising only from the date of retirement between retirees with similar premiums and working conditions.. In the discussions held in the Turkish Grand National Assembly in 2026, suggestions were made to reconsider the pension calculation method, to enact a fair adjustment law and to ensure that the lowest monthly salary does not fall below the minimum wage.

IS IT A PRIVATE INCREASE OR INFLATION INCREASE?

Another topic discussed is an additional increase of equal amount for all retirees, in addition to the inflation increase. This method can provide a higher proportional increase, especially for low monthly salaries. However, according to evaluations, a fixed raise is lower compared to retirees with higher salaries; It gives a higher increase to those with lower salaries. In current practice, the basic pensions of SSK and BAĞ-KUR retirees are increased by the six-month inflation rate. Increasing the minimum monthly salary also requires legal regulation.

STARTED IN 2019

Differences in pensions date back to pension calculation rules that were changed in 1999 and 2008. While the relationship between the lowest salary and the minimum wage was weakened in 2000, new changes were made in the calculation system in 2008. A separate application was launched in 2019 after the legal lower limit was insufficient to protect low salaries.. The pensions of retirees whose basic salary was below 1,000 lira were supplemented to this amount with the support of the Treasury. In the following years, the base amount was increased many times; Thus, the practice, which started for the purpose of livelihood support, became one of the main topics of discussion regarding the differences between pensions.