As the 25% cap on rent increases ends in July, rents are expected to rise by 65.21%, while civil servants and retirees might see a 20-25% increase in their salaries. This means that rent for a house costing 12,000 liras could rise to 19,825 liras, while a retiree’s pension of 12,000 liras would increase to just 15,096 liras.
Millions of low-income individuals, who rely on their salaries and pensions and live in rented housing, are expected to face a significant financial crisis in July due to this disparity in increases.
According to a report in media, while rents will increase by 65.21% in July, the salary increase for civil servants and retirees will remain between 20-25%. There will be no increase for those on minimum wage or the lowest pension of 10,000 liras.
After these increases, millions of workers, civil servants, and retirees will not have enough monthly income to cover their rent. Currently, a retiree receiving 12,000 liras will see their pension increase to 15,096 liras, but the rent for a 12,000 lira house will rise to 19,825 liras.
INCOME OF MILLIONS OF LOW-INCOME INDIVIDUALS WILL BE LOWER THAN THEIR RENT
Due to this discrepancy in increases, the income of millions of low-income individuals, which currently exceeds their rent, may fall below their rent.
HOW MUCH WILL CIVIL SERVANTS AND RETIREES’ SALARIES INCREASE?
Based on inflation estimates for June, it is calculated that in July, civil servants and retirees will receive an increase of around 20.3%, and worker retirees will receive an increase of approximately 25.8%.
25% CAP ON RENT INCREASES WILL END
Unless the government changes its decision, the 25% cap on rent increases will end as of July. The Code of Obligations stipulates that the 12-month average consumer price index (CPI) must be applied to rent increases, which will result in an increase rate of approximately 65.21% in July.
