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Türkiye's top earners capture 48% of income as inequality edges lower

Pedestrians walk on the popular Istiklal shopping street in Istanbul, Türkiye, March 31, 2025. (AFP Photo)
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Pedestrians walk on the popular Istiklal shopping street in Istanbul, Türkiye, March 31, 2025. (AFP Photo)
December 26, 2025 11:53 AM GMT+03:00

Türkiye's wealthiest households continue to dominate the nation's income distribution, though new government statistics show a slight easing of inequality in 2025, according to data released by the Turkish Statistical Institute on Thursday.

The top 20% of earners by disposable household income captured 48% of total income in 2025, down 0.1 percentage points from the previous year, TurkStat reported. Meanwhile, the bottom 20% saw their share rise by 0.1 percentage points to 6.4 percent, marking a modest shift in the country's economic landscape.

The Gini coefficient, a standard measure of income inequality where zero represents perfect equality and one represents maximum inequality, declined marginally to 0.410 from 0.413 in 2024. The slight decrease suggests income distribution became fractionally more equal, though Türkiye remains among countries with significant income disparities.

Pedestrians crowd Istiklal Street, one of Istanbul’s busiest thoroughfares in Türkiye, accessed on Dec. 22 ,2025.. (Adobe Stock Photo)
Pedestrians crowd Istiklal Street, one of Istanbul’s busiest thoroughfares in Türkiye, accessed on Dec. 22 ,2025.. (Adobe Stock Photo)

Household incomes surge amid high inflation

Average annual disposable household income in Türkiye jumped 76.7% to 662,414 Turkish lira, reflecting the country's ongoing battle with elevated inflation rates. Per capita disposable income rose 77.3%, climbing from 187,728 lira to 332,882 lira.

Single-person households recorded the highest average per capita income at 418,025 lira, an increase of 194,166 lira year-over-year. Households consisting of at least one nuclear family plus additional members reported the lowest average income at 264,413 lira.

The substantial nominal increases in household income come as Türkiye has grappled with persistent inflation that has eroded purchasing power, making year-over-year comparisons in lira terms less indicative of real improvements in living standards.

Regional disparities persist across the country

Geographic inequality remained pronounced across Türkiye's regions. Ankara led all second-level statistical regions with an average per capita disposable income of 449,618 lira, followed by Istanbul at 434,929 lira and Izmir at 405,896 lira.

The Van, Mus, Bitlis and Hakkari region in the southeast recorded the lowest average income at 172,552 lira, less than 40% of Ankara's figure and barely half the national average.

Inequality ratios show geographic variation

The P80/P20 ratio, which compares the income share of the top 20% to the bottom 20%, fell slightly to 7.5 from 7.7, indicating the wealthiest quintile earned 7.5 times the income of the poorest quintile. The P90/P10 ratio, measuring the gap between the top and bottom 10 percent, decreased to 12.9 from 13.3.

Regional inequality patterns varied considerably. The Malatya, Elazig, Bingol and Tunceli region, along with the Kocaeli, Sakarya, Duzce, Bolu and Yalova region, posted the lowest P80/P20 ratios at 4.6, suggesting more balanced income distribution.

The Kirikkale, Aksaray, Nigde, Nevsehir and Kirsehir region exhibited the highest inequality with a P80/P20 ratio of 8.5, followed by the Antalya, Isparta and Burdur region at 8.3.

When all social transfers were excluded from calculations, the Gini coefficient rose to 0.473, underscoring the role of government programs in moderating inequality. With only retirement and survivor pensions included, the coefficient stood at 0.420, while the gross income Gini coefficient reached 0.422.

December 26, 2025 11:54 AM GMT+03:00
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