Regional Minimum Wage

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KOSAM Shared Regional and Sectoral Minimum Wage Studies with the Public

Konya Chamber of Commerce (KTO) Karatay University's Development-Oriented Strategic Research Center (KOSAM) has reported the regional and sectoral minimum wage issues, which are widely applied in developed countries and are among the demands of the business world from the economic administration.

With the announcement that the Minimum Wage Determination Commission will start its work on December 11, 2023 to determine the minimum wage for 2024, the minimum wage issue has taken its place at the top of the agenda again. Stating that they have shared their reports with the public, KOSAM Chairman Lütfi Can Başaran said, "In the current minimum wage system, there is a uniform application all over Turkey. According to the socio-economic development index, employees working in Region 1 and Region 6 receive the same wage, and we do not find it healthy in terms of sustainability that employees working in different competencies receive the same wage.”

KOSAM discussed the minimum wage issue, which is closely related to the business world, with the title "A New Approach to Working Life". Başaran, who evaluated the reports including two models in which minimum wage is determined according to sectors, regions and different components, stated that KOSAM, which is a part of the ecosystem of Konya Chamber of Commerce, carries out local, regional, national and international research and studies in areas such as economy, politics, trade, industry, social policy, education, environment.

Lütfi Can Başaran underlined that KOSAM offered two solution proposals by examining data such as investment incentive regions, household consumption expenditures, equivalent household incomes, employment levels, and sectoral studies in our country. Başaran said, "The examples examined within the scope of the study emphasize that in order to create a fair remuneration basis, the system needs to be designed in a simple, obvious, understandable, applicable, and auditable manner. In practice, a significant portion of employers in our country do not pay employees at the minimum wage level, but at different wages, taking into account the characteristics of the job and the individual."

KOSAM Suggests a Feasible Minimum Wage Model

Başaran stated that they synthesized the examples from around the world with the real data of our country's business world; "We aim to create a fair wage base that varies according to the qualifications of the job and the employee. In this model, where a wage mathematics that will bring theory and practice closer to each other and where the basic characteristics of the individual and the work are taken into account; parameters such as education level, experience, the nature of the work and the employee, and the risk of occupational accidents and occupational diseases constitute the main determinants."

Başaran emphasized that government subsidies play a critical role at this stage to ensure that the volume of employment, economic growth performance and international competitiveness are not harmed, and underlined the need for a highly skilled and equipped workforce in line with the goal of achieving high-tech output in production.

Başaran said that socio-economic differences between regions in our country cause inequality in investment and consumption; "Especially when it comes to provinces with markedly contrasting levels of development, the regional minimum wage represents the most rational system. Thanks to the regional minimum wage, KOSAM offers two different solutions for a minimum wage model that is suitable for payment capacities, living standards and general requirements."

Başaran stated that the minimum wage models put forward by KOSAM with the motto "A New Perspective on Working Life" aim to make a sustainable contribution to development, support social justice, and play a role in increasing the welfare of employees under fair competition conditions, and that they aim to discuss the reports prepared with the contributions of academics and experts in the public.