Net Minimum Wage in Northern Cyprus to Rise to 58,738 Liras in February

The net minimum wage in Northern Cyprus is set to increase significantly in February, providing welcome financial relief for thousands of workers. The announcement was made on January 26 in parliament by Prime Minister Ünal Üstel, who confirmed that the new minimum wage will be tax-free and supported by additional government contributions.

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New Net Minimum Wage in Northern Cyprus Confirmed

From February, the net minimum wage will rise to 58,738 Turkish liras, up from the previous level of 52,738 liras. According to the Prime Minister, this represents an overall increase of approximately 22.9%.

Crucially, the government will:

·         Pay pension fund contributions on behalf of workers

·         Cover the difference in social insurance contributions through the Ministry of Labour

·         Ensure the increased wage is paid without income tax deductions

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Additional Government Support for Workers

Ünal Üstel reminded parliament that minimum-wage workers were already receiving 2,000 liras per month in state support. Under the new measures, this assistance is being expanded to include pension and social insurance contributions.

As a result, a total of 12,000 liras will be credited to eligible workers’ accounts across February and March, significantly boosting short-term take-home income while protecting long-term pension rights.

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Support for Employers and the Private Sector

The Prime Minister also highlighted previous government support aimed at easing the burden on employers. Last year:

·         80% of social insurance contributions were covered for male employees

·         100% of contributions were covered for female employees

·         Approximately 250 million liras per month were allocated to the private sector for this support

Following the new announcement, around 12,000 applications for wage support have already been submitted, indicating strong uptake across the workforce.

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What This Means for Residents

For workers, the changes mean:

·         Higher net income

·         No loss of pension entitlements

·         Greater financial security during rising living costs

For employers, contribution differences will continue to be covered by the state, helping businesses maintain employment while complying with minimum wage requirements.

The February increase marks one of the most substantial minimum-wage support packages introduced in Northern Cyprus in recent years.