Türkiye expects to spend an additional TL 50.4 billion ($1.38 billion) on higher retirees' allowances and maternity benefits this year, an impact analysis report showed on Thursday.
A bill submitted to a parliamentary commission by President Recep Tayyip Erdoğan's ruling Justice and Development Party (AK Party) includes an increase to the Eid holiday allowances paid to 15.5 million pensioners by TL 1,000 ($27.32).
There are also changes to maternity and child allowances in an effort to halt a declining birth rate.
The report, prepared by the AK Party, said the Eid allowance rise will amount to TL 28.4 billion for the 2025 budget while maternity allowances will cost an additional TL 22 billion.
The increase in maternity and child allowances is expected to total as much as TL 337 billion in five years, the report said.
Faced with declining birth rates, Ankara declared 2025 the "year of the family" and promised incentives to boost fertility rates.
Opposition politicians say the proposed increases will not be enough to lift birth rates given the tough economic climate.
Türkiye's total population stood at 85.6 million in 2023, with 10.6% classified as elderly, according to figures from the Turkish Statistical Institute (TurkStat).
The country's total fertility rate has declined over the last decade to 1.51 live births per woman in 2023, which remained below the population's replacement level of 2.10.
Despite the growing population, Türkiye experienced a decline in fertility rates in 2023, when they fell to 1.51 live births per woman, below the replacement level of 2.1, the report highlighted.
Newlyweds in Türkiye can now access a family fund offering interest-free loans of up to TL 150,000, with a two-year grace period before repayment begins. The initiative was initially introduced to support victims of the devastating February 2023 earthquakes.
Declining birth rates pose a significant challenge for other major countries like Japan, Italy, China and France, as they struggle to address the growing imbalance between an aging population and a shrinking workforce.
