The Turkish Statistical Institute (TUIK) released the results of the Income Distribution and Living Conditions Survey for 2023, which reflects data from the year 2022.

The income information regarding the Income and Living Conditions Survey, in which Income Distribution Statistics are calculated, 2023 results refers to the year 2022, the previous calendar year. In the calculations of income, the household's income is converted into the equivalent household disposable income by taking into account the size and composition of the household.

According to the survey results, the share of the top quintile by the equivalized household disposable income was 49.8% recording an increase of 1.8 points whilst the share of the bottom quintile was 5.9% with a decrease of 0.1 points in comparison with the previous year.

Gini coefficient was 0.433

 Gini coefficient one of the measures of income inequality varies between 0, which reflects complete equality and 1, which indicates complete inequality. In the calculation of Gini coefficient, the household disposable income, which was found by subtracting the taxes paid in the income reference period and regular transfers to other households or persons from the sum of annual incomes of the household and the individuals, was used.

Gini coefficient, which was estimated only over the equivalized household disposable income in previous years, was calculated with two additional different methods, such as excluding all social transfers, excluding all other social transfers while including pensions and survivors' benefits, to see the effects of social transfers on income distribution.

According to the 2023 results, Gini coefficient was estimated 0.433 with an increase of 0.018 points compared with the previous year. Gini coefficient was estimated 0.520 when excluding all social transfers and 0.445 when including pensions and survivors' benefits and excluding all other social transfers.

S80/S20 ratio calculated as the ratio of total income received by the richest 20% of the population to that received by the poorest 20% of the population increased from 7.9 to 8.4, while the S90/S10 ratio, which is calculated as the ratio of total income received by the richest 10% of the population to that received by the poorest 10% of the population increased from 14.2 to 15.0.

Mean annual household disposable income was 167 thousand 983 TL

The mean annual household disposable income was 167 thousand 983 TL in 2023 with an increase of 70.7% compared to previous year in Türkiye.

Mean annual equivalized household disposable income was 83 thousand 808 TL

In Türkiye, the mean annual equivalized household disposable income increased by 72.3% compared to the previous year from 48 thousand 642 TL to 83 thousand 808 TL.

One person households had the highest mean annual equivalized household disposable income

According to the household type, the highest mean annual equivalized household disposable income observed among the one person households with 100 thousand 076 TL with an increase of 37 thousand 522 TL compared to previous year. The mean annual equivalized household disposable income of the multi-person no-family households 99 thousand 916 TL while this income of the one-family households was 85 thousand 758 TL. The household type with the lowest mean annual equivalized disposable income was extended-family households with 66 thousand 001 TL.

Wages and salaries held the highest proportion of total income with 48.5%

The ratio of wage and salaries got the highest rate with 48.5% of total equivalized household disposable income with an increase 2.3 point compared with the previous year. This was followed by the entrepreneurial incomes 22.1% with an increase 1.1 points and social transfers 17.6% with a decrease 2.6 points compared to 2022.

The share of agricultural income in the entrepreneurial income was realized as 20.5%. Pensions and survivors' benefits composed 88.4% of social transfers.

Higher education graduates had the highest mean annual income at main job with 157 thousand 851 TL

Mean annual income at main job was calculated as 157 thousand 851 TL for higher education graduates, 114 thousand 374 TL for high or equivalent school graduates, 89 thousand 012 TL for those with less than high school education 63 thousand 425 TL for those who do not graduate from a school and 45 thousand 637 TL for illiterate individuals. In 2023, compared to 2022, the highest increase in income at main job was observed in the individuals graduated from less than high school with 89.7% and the lowest increase was in illiterate individuals with 79.6%.

Agricultural sector held the highest increase of total income with 100.9%

When the mean annual income at main job are analyzed in branches of economic activity; it was observed that the highest mean annual income was in the service sector with 121 thousand 013 TL and the lowest mean annual income was in the agricultural sector with 92 thousand 632 TL. Compared to the previous year; the highest increase in mean annual income was observed in the agriculture sector with 100.9%, followed by the industrial sector with 86.7%. On the other hand, an increase of 83.2% was observed in the service sector and 74.3% in the construction sector.

Employers had the highest mean annual income at main job with 408 thousand 174 TL

Mean annual income at main job was 408 thousand 174 TL for employers, 115 thousand 622 TL for self employed workers, 102 thousand 821 TL for regular employees and 53 thousand 334 TL for casual employees. Compared to the previous year, the highest increase was in casual employed workers with 108.1% and the lowest increase was in regular employed worker individuals with 80.7%.

The region with the lowest income was TRB2 (Van, Muş, Bitlis, Hakkari)

Due to the earthquake that occurred in our country, fieldwork could not be conducted in the TR63 (Hatay, Kahramanmaraş, Osmaniye) region in the 2023 study. Therefore, the regional results provided in the Statistical Regions (SR) Classification cover 25 regions.

In 2023, whereas the mean annual equivalised household disposable income of Türkiye was 83 thousand 808 TL, TR10 (İstanbul) was the region having the highest mean annual equivalised household disposable income with 114 thousand 634 TL within the SR Level 2. It was followed by TR51 (Ankara) and TR21 (Tekirdağ, Edirne, Kırklareli) regions with mean annual equivalised household disposable income 108 thousand 036 TL and 101 thousand 372 TL respectively. The region with the lowest mean annual equivalised household disposable income was TRB2 (Van, Muş, Bitlis, Hakkari) region with 39 thousand 173 TL.

Income inequality was the lowest in TR81 (Zonguldak, Karabük, Bartın) SR Level 2 region

According to the results of the latest research, S80/S20 ratio was 8.4 for Türkiye whereas the lowest values were realized in TR81 (Zonguldak, Karabük, Bartın) with 5.3. This SR Level 2 region was followed by TR42 region including Kocaeli, Sakarya, Düzce, Bolu, Yalova with 5.4 and TRB2 region including Van, Muş, Bitlis, Hakkari with 5.5.

SR Level 2 region with the highest S80/S20 ratio was TRA2 (Ağrı, Kars, Iğdır, Ardahan) with 9.4 and this region was followed by TR10 (İstanbul) and TR51 (Ankara) regions with 8.4.

66.5% of individuals in the last decile remained in the same income group compared to the previous year

When the changes of deciles by the equivalized household disposable income were analyzed, it was seen that the income groups of 49.2% of the individuals in the first decile and 66.5% of them in the last decile did not change in 2023. In addition, the income group of 29.9% of the individuals were in the first decile in 2022 increased more than one group in 2023 whereas the income group of 13.1% of the individuals in the last decile decreased more than one group.

42.4% of the individuals who were unemployed in 2022 started working in 2023

According to the results obtained from panel data of the Income and Living Conditions Survey, 42.4% of the individuals who were unemployed in 2022 started working in 2023. 90.5% of the individuals whose activity status was determined as employees in 2022 continued their working life in 2023. 10.1% of the individuals who were not in labor force in the previous year started to work or searched for work in 2023. (ILKHA)