SSK and Bağ-Kur pension hikes and civil servant salary increases: Latest situation

Expectations regarding the 2024 salary and increase hikes, which closely concern millions of citizens in Türkiye, have begun to become clear with inflation data. SSK and Bağ-Kur retirees, who are retired under the Social Security Institution (SGK), along with civil servants who are public employees, are eagerly awaiting the increase rates to be implemented in the second half of the year. Although official announcements have not yet been made, how the final picture will take shape in the light of economic indicators and past data, and how much it will reflect on the salaries of citizens, is a subject of discussion.

The increase rate for SSK and Bağ-Kur retirees, which excludes the pension fund and covers millions of people, is generally determined based on the six-month inflation difference. Following the first increase made in January, the inflation difference emerging in the July period is reflected to this group as an additional increase or salary compensation. Economists and economy commentators predict that the price increases in food and living materials in recent months will reflect positively on the salaries of this segment and that there may be an increase above expectations.

The situation for civil servants representing public employees and their retirees is based on collective agreement provisions that work a little differently. Civil servant salary increases are paid as a difference if the realized inflation exceeds the rate determined in the collective agreement signed between the government and unions, in addition to the determined rate. As a result of the base increase rate determined in January being revised with the inflation data to be announced in July, the net amount of increase in the salaries of civil servants will also become clear. In this process, the balance between the demands of civil servant unions and the proposals presented by the government is important.

Expert assessments on the subject state that the hike to be made to worker and civil servant retirees in July plays a critical role not only in terms of welfare share but also for the sustainability of economic stability. Steps taken to protect the purchasing power of low- and fixed-income groups are closely followed in conjunction with the general movements in the markets. Pensioner associations and relevant non-governmental organizations frequently express their expectations that the increases will fully meet inflationary pressure and constitute a solution against the cost of living.

As a result, the final picture regarding SSK, Bağ-Kur and civil servant increases will become clear after the official inflation figures are announced. With the announcements to be made by government officials and relevant ministries, the increase rate to come to the salaries of millions of retirees and civil servants will be finalized. Under current economic conditions, citizens continue to wait for official announcements with great impatience to see to what extent the increase in their income will reflect on their living standards. With the transactions to be made especially in August and September, when and how the new salaries will be deposited will also become clear.