Working Poverty: Why Are Workers in Turkey More Indebted?
In today's Turkey, ‘working’ often means ‘going into debt.’ This situation calls into question not only individuals but also the entire economic and social structure of society.
Introduction
There is a growing contradiction in Turkey: working people are becoming more indebted than those who are not working. According to traditional thinking, work is the foundation of economic prosperity. However, in today's Turkey, ‘working’ often means ‘borrowing.’ This situation raises questions not only about individuals but also about the entire economic and social structure of society. This study will explain the causes of working poverty, discuss its social and economic consequences, and present policy recommendations to address the problem.
Why Are Workers More Indebted?
A working person has a regular income; however, when this income is insufficient to cover basic living expenses, debt becomes inevitable. Working person:
Pays rent and bills,
Makes necessary expenditures such as transportation, food and health,
Deals with loan and credit card payments,
Easily accesses new loans because they are defined as a ‘reliable borrower’ by the system.
In other words, because they have an income, the financial system offers them new loans. This traps the worker in a debt spiral. According to OECD and TÜİK data, household debt in Turkey is increasing rapidly in relation to income; this situation is particularly pronounced among low-income workers.
Why Are the Unemployed Less Indebted?
Unemployed or non-systemic individuals:
Cannot access credit because they are considered ‘risky customers’ by banks,
Keep their expenses to a minimum,
Can benefit from social assistance (food, rent, cash support, etc.),
May not have expenses such as rent or bills because they live with their families.
As a result, these individuals lead a debt-free but low-profile life within limited living conditions.
The Impoverishing Effect of Work
A significant portion of minimum wage earners report that their income does not even cover their basic needs. According to data from June 2025 in Turkey:
Poverty line: 26,115 TL
Net minimum wage: 22,104.67 TL
The approximately 4,000 TL difference between the poverty line and the minimum wage reveals that workers cannot even meet their basic food needs. This situation leads to:
- Disruption of the income-expenditure balance,
- Increased dependence on consumer credit,
- The necessity of using credit cards.
Workers are forced to take on debt in order to sustain their livelihoods.
Where is this system heading?
This economic structure also has a negative impact on social balance:
- Work motivation is declining: Young people and low-income individuals are beginning to ask, ‘What's the point of working?’
- The informal economy is growing: Those seeking to avoid tax and social security contributions are opting for informal work.
- State tax revenue is declining: As the informal economy grows, public finances weaken.
- The sense of social justice is being undermined: The perception that ‘those who work are exploited, while those who do not work are supported’ is deepening social conflicts.
What should be done?
Economic and social indicators show that this system is not sustainable in the long term. The following measures should be taken:
‣ A minimum living income should be guaranteed: No salary should be below the poverty line.
‣ Support should also be provided to working poor: Social assistance should be directed not only to those who are unemployed, but also to those who are working but living in poverty.
- The debt and credit system must be regulated: Consumer debt must be kept at reasonable levels, and interest and repayment systems must be restructured.
- Tax policy must be reformed in favour of labour: High indirect taxes on low-income earners must be reduced.
Conclusion
In Turkey, labour no longer generates prosperity, but debt. This is not only an economic crisis, but also a social crisis.
“Working should not lead to poverty. Labour should bring value, not debt.”
In order for this understanding to take root at the social and institutional levels, it is essential to redesign income policies, the debt system and social support networks.
References
Betül Aydın (2022). “New Poverty in the Grip of Labour and Debt.” Mülkiye Dergisi, Vol. 46(3)
DİSK-AR: Working Poverty Report, 2024
https://www.turkis.org.tr/turk-is-haziran-2025-aclik-ve-yoksulluk-siniri
https://ozbekcpa.com/minimum-wage-in-turkey
OECD Economic Surveys: Turkey, 2023
TEPAV: Household Debt and Income Level in Turkey, 2023
Turkish Statistical Institute (TÜİK) – Income and Living Conditions Survey, 2023
