The minimum wage in Turkey has increased by 4.4%, or $2.70 per hour at current exchange rates.
Turkey is a major center for garment production in the EU, largely because of market proximity. It is the second biggest supplier of textiles and the third biggest supplier of garments for the region, despite its high labor costs.
“Its competitiveness in the sector is down to a number of factors – the size of firms, local production capability, vertical integration, competent management, creativity, dynamic commercial services, and a very favorable customs procedure with the EU,” said Jean-Francois Limantour, president of of the Cercle Euro-mÃ©diterranÃ©en des Dirigeants Textile-Habillement and a market analyst, to just-style.
Turkey lost its place as the second largest garment supplier last year to Bangladesh. The largest is China. Many analysts expect Turkey to retain its position as a garment and textile powerhouse, as firms such as Inditex and Mango continue to look to strong regional producers to enable their fast fashion model.