Expected Raise for Pensioners in January: Balancing Inflation and Welfare Share
Retirees, who are eagerly waiting for January, are carefully following the inflation data that will guide their raise rates. Social Insurance Institution (SSK) and Bağ-Kur pensioners receive a raise in January and July every year in line with the 6-month inflation rate, while Pension Fund pensioners are supported by collective bargaining and inflation difference in addition to these increases. In the increase to be made at the beginning of 2025, it is on the agenda to add a welfare share on the 6-month inflation increase projected in the 13-15 percent band and equalize pensions.
Inflation Rates Will Be Decisive in the Raise
The 6-month inflation rate to be announced in January will form the basis of the increase that pensioners will receive. The cumulative inflation increase of 8.92 percent as of July, August and September will be complemented with the data from October, November and December and will determine the final rate of the January raise. While SSK and Bağ-Kur pensioners will receive a salary increase according to this rate, the rate of increase will be determined by adding the inflation difference and collective bargaining increase to the Pension Fund pensioners.
The last three-month inflation rates are expected to be announced in order to clarify next year’s raise rates. These figures to be given by TURKSTAT will play an important role in reshaping pensions.
Will Welfare Share be Added?
The welfare share arrangement applied in the past has come to the agenda again in the increases to be made in January. Last year, in addition to the 6-month inflation increase in the 13-15 percent band in January, a welfare share was given. A similar practice is expected to be repeated this year. The welfare share ensures that the increase in salaries is determined at a higher rate and brings pensions to a fairer level for SSK, Bağ-Kur and Retirement Fund pensioners.
The base salary is also planned to be increased with the increase in the increase rates. Currently, the lowest pension is set at 12,500 TL and it is on the agenda to increase this figure to 15 thousand TL in 2025.
Possibility of Equalization for SSK, Bağ-Kur and Retirement Fund Pensioners
In recent years, various arrangements were made to close the salary gap between SSK and Bağ-Kur pensioners and Pension Fund pensioners. This year, a similar equalization mechanism is expected to be put into effect with the increases to be made in January. While Pension Fund retirees received inflation differential in addition to the collective bargaining agreement increase, SSK and Bağ-Kur retirees received only inflation rate increases. However, with the increase to be made in January, it is envisaged to equalize the increase rates with the addition of a welfare share for all retirees. With this step, it is aimed to balance pensions and ensure a fairer distribution.
The Lowest Pension Can Be Increased
On the other hand, the increases to be made to pensions will also allow the base salary to be redetermined. The lowest pension, which was increased from 10 thousand TL to 12,500 TL in 2023, is on the agenda to be 15 thousand TL as of January 2025. With the increase in pensions according to the inflation rate, the addition of the welfare share and the increase in the base salary, millions of pensioners are expecting higher salaries. This increase aims to increase the purchasing power of retirees and improve their living standards.
Decisive Date for Salary Increase: January 3
The final decision on the increase rate for pensions will be announced on January 3. The inflation rate to be announced on this date will determine the increase rates as well as whether or not a welfare share will be added. If the government decides to add a welfare share, an extra increase will be provided to the salaries with this regulation and the difference payments will be deposited into the accounts of the retirees. Thus, the salary increases to be made in January for SSK, Bağ-Kur and Retirement Fund pensioners will be shaped together with the inflation rate, collective bargaining hike and the addition of welfare share.
Widows and Orphans’ Salaries Will Also Increase
The increases will have a positive impact not only on pensioners but also on widows and orphans. With the increase in the lowest pension, widows and orphans with a 75 percent share will receive 9,375 TL, while those with a 50 percent share will receive 6,250 TL. The increases in pensions will also increase widows’ and orphans’ salaries and improve the living standards of these people.
