Millions of retirees and civil servants in Turkey are set to receive salary and pension increases that many say fall short of meeting the actual and real prices that people experience in their daily lives after the national statistics agency on Thursday announced a modest rate of inflation that critics argue fails to reflect real prices.
The Turkish Statistical Institute (TurkStat) on Thursday reported an annual inflation rate of 35.05 percent for June and a monthly increase of 1.37 percent, lower than forecast. However, the Inflation Research Group (ENAG), an independent team of economists, have estimated annual inflation at 68.68 percent and a monthly rise of 3.05 percent for June, nearly double the official figures.
The difference matters for retirees and public servants who get pay and pension increases based on TurkStat’s lower inflation rate, meaning their incomes may not keep up with the actual cost of living in the country.
Based on TurkStat’s figures, retirees will receive a 16.67 percent rise in their pensions, while public servants are set to get a 15.57 percent increase in salary. These hikes also account for terms in collective labor agreements, which entitle government employees to biannual raises with inflation adjustments if actual price increases exceed scheduled rates.
The adjustments affect a large segment of the population. Nearly 16.5 million retirees, 4 million civil servants and around 2 million people receiving social support payments will see their monthly incomes rise. In total, the salary and pension hikes will directly impact approximately 22.5 million people across Turkey.
Ruling Justice and Development Party (AKP) parliamentary group chair Abdullah Güler said Thursday that the lowest monthly pension, currently at 14,469 Turkish lira ($432), will rise to 16,881 lira ($504). Despite the increase, the figure remains well below the monthly minimum wage, which was set at 22,104 lira ($626) in January but has since depreciated to around $554 due to inflation and currency decline.
The salary adjustments come amid widespread frustration with the cost of living in Turkey, where food, rent and utility prices have surged well above the official inflation rate. Many retirees already live below the poverty line, and critics argue the hikes are insufficient to address their needs.
Ali Mahir Başarır, deputy parliamentary group chair of the main opposition Republican People’s Party (CHP), on Thursday condemned TurkStat for what he described as “unrealistic inflation data” that undercut the incomes of retirees and public employees.
“TurkStat has become an institution that harms pensioners and public workers,” Başarır said. “The inflation people feel in the streets and what workers and retirees live through doesn’t match what TurkStat reports.”
He noted that if ENAG’s inflation estimate of nearly 69 percent had been used, retirees would have seen a 26.67 percent increase instead.
TurkStat has long faced mounting criticism for allegedly manipulating data to obscure the extent of Turkey’s economic troubles under the government of President Recep Tayyip Erdoğan. The institute has been accused of downplaying key statistics, including inflation and unemployment, in an effort to maintain public confidence amid economic instability.
A MetroPoll survey found last year that 61.7 percent of Turks believe TurkStat underreports inflation, reflecting deepening mistrust in official data.
Over the past several years Turkey has been suffering from a deteriorating economy, with high inflation and unemployment as well as a poor human rights record. The lira has been the worst performer in emerging markets for several years running due largely to economic and monetary policy concerns under the government of President Erdoğan.