July Hike Rates for Millions of Retirees and Civil Servants Are Being Determined

The critical inflation data that will determine the rate of increase for the salaries of millions of retirees and civil servants across Turkey has been announced. As one of the most important items on the economic agenda, this development was followed with great curiosity as it will directly affect the salaries of approximately 20 million citizens. With the clarification of the inflation data for the first six months of the year, the hike rates to be applied in July and the inflation difference for civil servants have become definite. In light of the calculations and official data released, details have emerged regarding the rate of increase that will be applied to the new salaries of SSK and Bağ-Kur retirees and civil servants.

With the data accumulated over the past five months and June inflation, the hike rate for SSK and Bağ-Kur retirees has been finalized. In this context, while it is stated that the total increase to be reflected in retiree salaries is shaped in the 17 to 18 percent band, civil servants who receive raises contractually were subject to a different rate within the scope of the Collective Agreement difference. For civil servants and civil servant retirees, based on the five-month cumulative inflation difference and the latest data released, it is estimated that the hike rates will materialize in the range of 13 to 14 percent. In this case, the salary increases valid for the second half of the year have been determined for both civil servants and retirees.

Immediately after the new hike rates became official, the calendar regarding salary payments also gained clarity. Since retirees' salaries are paid upfront, the determined increases and inflation differences will be directly reflected in the July salaries. In this process, new salaries will be deposited into accounts without any delay, and rights holders will start receiving the increased amounts as of July. The transition process to new income levels will be implemented step by step within the framework of legal regulations.

The payment dates for the increased salaries were planned to vary according to the institution worked for and retiree status. Civil servants and civil servant retirees will see the July hikes and supplementary payments fully in their accounts on the 15th, as every month. The payment schedule for SSK retirees will be made between July 17 and 26, in the order determined by the last digit of the retirees' allocation numbers. Bağ-Kur retirees, on the other hand, will be able to review the payments to be made this month in their bank accounts between July 25 and 28.

In line with economic data and announced inflation figures, the possibilities of additional hikes in the future period continue to be a topic of discussion. If January inflation comes in high, the issue of whether an additional improvement or hike will be made in the second half of the year maintains its place on the agenda. However, for now, eyes are focused on these net increase rates reflecting in July and the process of salaries being transferred to accounts. Citizens are waiting to update their budget plans in economic life with the reflection of new salary amounts.