Türkiye raised the monthly minimum wage by 49% to TL 17,002 ($578.1) beginning Jan. 1, Labor and Social Security Minister Vedat Işıkhan announced Wednesday.

Işıkhan's announcement came after days of discussions of the Minimum Wage Determination Commission.

The increase is expected to help boost purchasing power among workers, over a third of whom earn the minimum wage.

Speaking after the announcement, Ergün Atalay, the president of the Confederation of Turkish Labor Unions (Türk-İş) said that they requested TL 18,000 and biannual negotiations, but their request was turned down.

The minimum wage announced Wednesday will be fixed throughout 2024 and there will be no other negotiations to raise it until next year.

Türkiye’s annual inflation rate edged up slightly in November to 61.98% from 61.36% in October.

Last month, the central bank said tightening would be completed in a short period.

It said domestic demand appears to be moderating; however, its existing high level, along with stickiness in service prices and geopolitical risks, keep inflation pressures alive.