As Turkey’s minimum wage rises by 30% in January 2025, apparel manufacturers in the country are facing mounting challenges to balance costs and maintain profitability.
The new monthly minimum wage of 22,104 Turkish lira ($621.22) places Turkey among the higher-wage countries in the apparel sourcing industry, surpassing nations like Cambodia, Vietnam, and Bangladesh, where wages typically remain below $200 per month.
For manufacturers, this significant wage hike — impacting about 1.5 million workers in the apparel sector — adds to the growing pressure from rising inflation, which has escalated from 64.77% in December 2023 to 44.38% by December 2024.
While the wage increase is seen as essential to support workers, it also risks exacerbating inflation, which remains a critical concern for the country’s economy.
As Turkish manufacturers increasingly shift focus from high-volume production to specialized orders for the European Union market, the minimum wage increase and the steep depreciation of the Turkish lira against the U.S. dollar are adding layers of complexity to their operations.
With the cost of labor rising and the country’s currency weakening, manufacturers are being forced to find innovative solutions to survive in a rapidly changing economic landscape.
