The Turkish government announced a 27% increase in the national minimum wage for 2026 on Tuesday, a decision aimed at protecting workers from inflation but immediately rejected by the country's main labor union.

Net monthly pay will rise to 28,075 Turkish lira (approximately $655.5), up from 22,104 lira in 2025, Labor and Social Security Minister Vedat Işıkhan said at a press conference. The gross minimum wage will be set at 33,030 lira.

"With the new wage, we stand behind our promise of not letting our employees be crushed by inflation," Işıkhan stated. He emphasized the government's goal to ensure increases "do not melt away in bazaars, markets, and on store shelves," and to protect citizens' purchasing power.

The announcement followed the third meeting of the tripartite Minimum Wage Determination Commission, comprised of government, employer, and worker representatives. However, the talks were held without the participation of the major labor confederation Türk-İş, which has protested the commission's structure.

Türk-İş President Ergün Atalay swiftly condemned the raise. "This figure does not meet any of our demands; it is not a figure we can accept," he told reporters.

The 27% adjustment, slightly above the 25% forecast by many economists, will directly affect millions of workers and is a key benchmark for private-sector wages. It carries significant implications for inflation, labor costs, and future monetary policy.

The decision comes as Türkiye's annual inflation cooled to 31.1% in November, its lowest level in four years. Vice President Cevdet Yılmaz stated on Tuesday that the government's priority for 2026 is to bring inflation below 20%, aligning with the central bank's medium-term targets.

The Central Bank expects inflation to fall to an interim target of 16% by the end of 2026, following a 24% target for the end of 2025.

As part of the new wage package, government support for the minimum wage will also increase, from 1,000 lira to 1,270 lira per month. Yılmaz reiterated the government's commitment to ensuring social welfare "on a path where inflation is falling and productivity is rising." (ILKHA)