All Eyes on Inflation Data for 2027 Civil Servant and Pension Raise

All eyes are on the inflation data to be announced in the second half of the year for the increase that will be reflected in the salaries of millions of civil servants and retirees in January 2027. So, how much will the civil servant salary increase be in 2027? How is the salary increase for retired civil servants calculated?

HOW MUCH WILL THE CIVIL SALARY INCREASE BE?

In terms of civil servant salaries and civil servant pensions, the increase in the January 2027 period will be determined by the collective agreement increase and the inflation difference. A 5 percent increase is predicted within the scope of the collective agreement for the first 6 months of 2027. In addition, if the inflation in the second 6-month period of 2026 exceeds 7 percent, an inflation difference equal to the excess will be applied.

For SSK and Bağ-Kur retirees, the 6-month CPI change is directly used as a basis for salary increases. It is also announced by SSI that within the scope of Law No. 5510, SSK and Bağ-Kur pensions were increased in the January and July periods by the change of the previous 6-month CPI.

According to the given year-end inflation scenarios, a 6-month inflation rate ranging between 8.70 percent and 10.06 percent is calculated for SSK and Bağ-Kur retirees in January 2027, while the raise rates for civil servant retirees are expected to be between 6.67 percent and 8.01 percent.

HOW IS CIVIL RETIRED SALARY INCREASE CALCULATED?

In line with Law No. 5510, pension increase mechanisms are implemented differently.

The pensions of retirees within the scope of SSK and Bağ-Kur are increased based on the 6-month CPI rate. For civil servant retirees, in addition to the increase determined within the scope of the collective agreement, if the inflation in the relevant period exceeds the determined rate, the inflation difference is included in the calculation.

For this reason, inflation data for the July-December period of 2026 must be completed in determining the rates that will be finalized in the January 2027 period.