Turkish gov't seeks compensating businesses' losses from upcoming minimum wage hike

The Justice and Development Party (AKP) is looking for ways to ease the burden on companies amid concerns by business representatives about an upcoming hike in the minimum wage. 

Prime Minister and AKP leader Ahmet Davuto?lu conducted a seven-hour meeting late Nov. 11 with representatives of employers and employees, listening to the expectations of all parties. Other labor market items were also on the table, daily Hürriyet has learned. 

Business leaders warned the PM that layoffs could begin and some facilities would be forced to be closed if the conditions are not eased.

The AKP promised before the Nov. 1 elections a 30 percent rise in the minimum wage from the current 1,000 Turkish Liras. The rise tends to have an upward effect on other wages. 

Economy Minister Nihat Zeybekci said Nov. 12 that the government is considering Treasury benefits if companies, especially SMEs, producers and exporters face any risks or losses. 

"Such a study in in making and the figures will become more concrete soon," he said, while speaking at the Belarus Business Forum in Istanbul.

Employers' representatives, including the heads of the Turkish Union of Chambers and Commodities Exchanges (TOBB), the Turkish Industry and Business Association (TÜS?AD) and the Turkish Confederation of Employers' Unions (T?SK), demanded an ease in social security fees as they also discussed flexible working conditions in exchange.

Rifat Hisarc?kl?o?lu, the head of the Turkish Union of Chambers and Commodities Exchanges (TOBB), said earlier that he supported the wage rise but that the costs for companies, which currently stands at 1,500 liras, should be kept unchanged, meaning less tax would be paid for each employee. 

Kani Beko, head...