The Minimum Wage Commission met again today to discuss the employers’ objections to the newly determined minimum wage, Yeniduzen reports.
The commission meeting at the Ministry of Labour and Social Security started at 10.30 am. In the second meeting held in September, which was not attended by the employers, the minimum monthly salary was set at 35,180 TL after deductions (net), and 40,436 TL before deductions (gross).
Accordingly, the 19.19 percent increase in the cost of living rate was approved, and the minimum wage remained unchanged.
The decision was taken by a majority vote of workers and the state. The new minimum wage came into effect on September 1.
In a separate article, Kibris Postasi reported that in 2024, North Cyprus faced significant economic challenges as its minimum wage rose to a level representing 97% of the national income. This statistic highlighted severe income inequality and economic imbalance in the region, particularly when compared to neighbouring countries like Malta and Southern Cyprus, which maintained more stable economies with lower minimum wage-to-national income ratios. This discrepancy raised concerns about the sustainability of the TRNC’s economic model.
Employers in North Cyprus objected to the recent 19% hike in the minimum wage, arguing that the decision was made without a thorough “economic evaluation” and lacked key technical data. The employers’ union refused to participate in the wage determination process, pointing to existing economic difficulties and inflationary pressures on businesses. They feared that such a sharp increase would add to the financial strain on employers, raising doubts about long-term economic viability.
