Prime Minister Üstel: No Plans to Abolish 'Cost of Living' Adjustments

Üstel highlighted that during this period, both public sector salaries and the minimum wage reached their highest levels in foreign currency terms.

In a written statement, Üstel underlined that the government has prioritized supporting low- and middle-income groups while offering comparatively less assistance to higher-income groups. He noted that the government had consistently improved salaries to protect citizens from inflation, achieving increases of at least 480% in Turkish Lira terms and 130% in foreign currency terms, despite a cumulative inflation rate of 234%. He affirmed the government’s ongoing commitment to safeguarding employees from inflation.

Üstel dismissed claims that the cost-of-living adjustment would be abolished and clarified that adjustments would continue to ensure wages are not impacted negatively. The adjustment frequency, which was temporarily increased to three times a year, will revert to its pre-2024 schedule of twice annually from January 2026. Üstel stated that no salary reductions would occur and that annual increases would meet or exceed inflation rates.

Addressing concerns about economic pressure, Üstel attributed challenges to inflation rates exceeding real levels, which he said created artificial price increases and harmed purchasing power, particularly for low- and middle-income groups. He emphasized the government’s commitment to protecting citizens’ purchasing power and ensuring that all segments of society benefit equally from state resources.