Economy

How Much Will Salaries Be After Implementing the New Budget Law?

How Much Will Salaries Be After Implementing the New Budget Law?

The public budget for 2022, as stipulated by the valid law No. 10/2022 in Article 111, provides for an increase for employees in the public sector and retirees starting from 1/10/2022. This increase will be equivalent to twice the base monthly salary or hourly wage, or the basic pension without any additional increase, regardless of type or name. The total compensation for beneficiaries, including their basic salary, must not be less than five million lira and must not exceed twelve million lira, and this increase does not count towards the calculations for end-of-service benefits. However, the same article stipulates that any salary increase granted since 1/1/2020 should be deducted before calculating the doubling.

Since employees in public institutions have benefited from cost-of-living decrees, which amount to 1,325,000 lira and 600,000 lira in the second instance, these increases will be deducted before the doubling process. Consequently, if an employee in the institution has a salary of 4,425,000 lira, their new total income will be 9,425,000 lira, considering that the base income used for the doubling calculation is only 2.5 million lira. The breakdown of their salary will include:

- Base Salary: 2.5 million lira

- Cost of Living Increase: 1,925,000 lira

- Social Assistance: 5 million lira

Therefore, the total income will amount to 9,425,000 lira.

Our readers are reading too