While retirees’ eyes are on the January 2027 raise, a new formula for salary increases has come to the fore. After President Recep Tayyip Erdoğan announced that financial opportunities to improve the situation of retirees were created in the 2027 budget and that the necessary legal regulation was aimed to be implemented by the end of the year with the discretion of the Turkish Grand National Assembly, lobbies regarding additional regulations that could be made became active.
IT’S NOT JUST AN INFLATION INCREASE FOR RETIREMENTS
One of the options reported to be being studied is to give an additional welfare share to pensions above the normal increase rate.
If this formula is implemented, it may be possible to apply an additional rate to the salary increase of retirees based on the periodic inflation difference.
However, there is no official decision yet regarding the rate of the welfare share and who it will cover.
3 CRITERIA STAND OUT
In additional support based on the information provided behind the scenes, instead of applying the same method to all retirees, certain criteria are among the options.
It is stated that the prominent headlines are age, income level and working status.
Accordingly, the possibility that retirees with lower incomes, older ages, or those who are not employed will be prioritized in support is being evaluated.
SEPARATE FORMULA FOR LOWEST RETIREMENT SALARY
The studies evaluate not only the general salary increase, but also the support model that can be applied to those receiving the lowest pension.
In this context, it is reported that the options of directly increasing the lowest salary or supporting salaries below the determined level through complementary payments are being considered.
HOW CAN WEALTH SHARE BE APPLIED?
Welfare share means an additional increase over the legal increase rate.
However, it is not yet clear whether the work on the agenda will provide an equal share of welfare to all retirees or whether a differentiated model will be introduced, taking into account income and social status.
ERDOĞAN MARKED THE END OF THE YEAR
In his statement after the Cabinet Meeting on October 26, President Erdoğan said that they were aware of the economic difficulties experienced by retirees.
Erdoğan stated that financial opportunities have been created in the 2027 budget to improve the situation of retirees and that they hope that the required legal regulation will be implemented within the framework of “justice and equity” and with the discretion of the Turkish Grand National Assembly by the end of the year.
EYES ON LEGAL REGULATION
In order to clarify the scope of the new model, the study must be turned into a legislative proposal.
Critical details such as the welfare share rate, supplementary payment limit and which retirees will benefit from additional support will be clear when the content of the legal regulation is revealed.
IT INTERESTS MORE THAN 18 MILLION PENSIONERS
The step to be taken at the end of the year directly concerns the income of millions of people receiving pensions.
In addition to the normal increase rate to be applied in January, if an additional welfare share or complementary payment decision is made, there may be an increase in pensions above the current calculations.
THE TABLE WILL BE CLEAR WITH THE JANUARY INCREASE
The second six-month inflation rate will be decisive in the January 2027 salary increase of SSK and Bağ-Kur retirees.
Thereupon, if an additional welfare share is given with political will or a separate legal regulation is made to increase the minimum salary, the increase calculation will be reshaped.
