Türkiye's Trade Ministry on Wednesday warned companies against raising prices under the pretext of a higher minimum wage, saying it would impose the harshest administrative and legal penalties on businesses engaging in excessive or unfair pricing.
"All administrative and legal measures will be applied decisively against businesses that resort to exorbitant price practices by using the minimum wage increase as an excuse," the ministry said in a statement, adding that sanctions would be enforced "at the highest level, based on updated penalty amounts."
The warning comes after Türkiye raised the net monthly minimum wage by 27% to TL 28,075 ($655) for 2026. The government has sought to limit the inflationary impact of the increase amid an ongoing disinflation program.
The statement underscores the government's efforts to limit the inflationary impact of the increase and contain expectations as it aims to bring annual consumer price inflation below 20% by the end of next year and into single digits in 2027.
Annual inflation in Türkiye cooled to 31.1% in November, the lowest level in four years.
The Turkish central bank's end-2025 interim inflation target stands at 24%, with a forecast range of 31%-33%. The bank expects inflation to fall to its 16% interim target by the end of 2026, with a projected range of 13%-19%.
The Trade Ministry said the minimum wage represents only one component of overall costs and that directly passing the full increase onto prices of goods and services was inconsistent with economic realities.
"Turning the minimum wage into a justification for unjustified and disproportionate price increases will not be tolerated," the statement said.
The ministry said inspection teams were conducting intensive and continuous checks nationwide, coordinated with the Agriculture and Forestry Ministry, and provincial trade and agricultural directorates.
Additional oversight is being carried out by the ministry's Internal Trade Directorate General and the Consumer Protection and Market Surveillance Directorate General, it said.
Consumers were urged to report any cases of unfair pricing or profiteering through official complaint channels, with the ministry stressing that "every notification is carefully examined and processed."
The statement reiterated that administrative fines would be imposed without exception when violations are identified. "No practice that undermines price stability, damages fair competition or targets citizens' purchasing power will be tolerated," the ministry said.
