Turkey's Denim Mills Absorb a 27% Minimum Wage Hike

Turkey's denim sector is adjusting to a 27 percent minimum wage increase that took effect on January 1, 2026, lifting the gross monthly minimum to 33,030 lira (about $769). According to a recent Sourcing Journal report, the real cost to manufacturers is closer to $1,000 per worker per month once food, transportation, service taxes and statutory benefits are included, according to Ahmet Oksuz, chairman of the Turkish Textile and Apparel Exporters' Association (ITHIB).

The increase places Turkey at the higher end of the wage spectrum among global sourcing destinations and accelerates its pivot away from volume-driven basics toward higher-value, more specialized denim manufacturing. "Rising wages are one of several interconnected cost pressures facing the industry today," said Ibrahim Ethem Buyukpepe, acting general manager of Calik Denim, who argued the sector's integrated supply chain, speed to market and technical expertise would keep it competitive.

Levent Korkmazer, founder of Istanbul jean maker Denimtek, said the impact shows up mainly in production costs rather than payroll, since prices of goods and services across the supply chain tend to rise after a wage hike before the cost balance normalizes within one to two months.

For wholesale buyers, the practical takeaway: Turkish mills remain strong for value-added and complex denim, while Egypt and North African capacity is gaining ground on price for high-volume basics — a split worth reflecting in 2027 sourcing plans.

Source: Sourcing Journal, "Turkish Denim Manufacturers Adjust to Minimum Wage Hike", November 2026; ITHIB; Calik Denim; Denimtek Tekstil.