North Cyprus raises minimum wage by 17.79% to 44,546 TL amid economic concerns

Lefkosia, TRNC – July 20, 2025 — The Minimum Wage Determination Commission of the Turkish Republic of Northern Cyprus (TRNC) has announced the second minimum wage of 2025, raising it by 17.79%, in line with the most recent cost-of-living data. 

The new minimum wage has been set at 51,202 TL gross and 44,546 TL net, effective from July 1, 2025.

The decision, reached during the commission's third meeting chaired by Minister of Labour and Social Security Sadık Gardiyanoğlu, passed by majority vote with support from the government and workers’ representatives. The employers' representative voted against the increase.

In his official statement, Minister Gardiyanoğlu detailed the updated wage breakdown:

-Monthly Gross: 51,202 TL

-Monthly Net: 44,546 TL

-Weekly: 11,815.84 TL

-Daily: 2,363.16 TL

-Hourly: 295.39 TL

The decision comes after the Statistics Institute published a 17.79% six-month inflation rate, which became the basis for the increase. In contrast, the previous adjustment made in January 2025 was a 7.5% rise — significantly below inflation — and was later challenged in court. While the judiciary did not block the earlier decision, it ruled that real data must be used in wage-setting procedures.

Employer Criticism: "This Path is Unsustainable"

Employer representative Cengiz Alp voiced strong objections following the announcement, warning of potential economic fallout. "In the next six months, businesses will shut down, and unemployment will rise," he said, expressing concern about the sustainability of such wage hikes.

Alp emphasized that the government has borrowed heavily — three times in foreign currency and once in Turkish lira — to finance recent wage commitments in the public sector. “The government can project this inflation onto public salaries by borrowing from the future. But how long can this go on?” he asked.

He criticized the consensus reached between the government and worker representatives, arguing that many small and mid-sized enterprises (SMEs) are already struggling to remain competitive. “This attitude is not sustainable. Some employers can pay this wage, but others cannot. We could not support this increase,” Alp stated.

Government Response: Support Measures in August

Minister Gardiyanoğlu responded to the concerns by announcing that the government will introduce new legislative measures in August to support businesses. He added that Prime Minister Ünal Üstel is personally monitoring the process to ensure a balanced implementation.

The updated minimum wage is now legally in effect and will apply retroactively from July 1, 2025.