North Cyprus inflation compensation bill to be returned to committee for revision

In Nicosia on April 20, the government decided to return the bill on cost-of-living compensation to committee. The decision followed an expanded group meeting of the National Unity Party (UBP); trade union representatives were invited to negotiations and stated that their demands had been taken into account.

Arslan Bıçaklı, speaking on behalf of the trade unions, said the bill would be revised based on the agreements reached and further consultations. He stressed that the "inflation compensation" mechanism is not a direct salary increase but is intended to preserve the purchasing power of the population. According to him, negotiations could continue until June depending on the inflation rate.

Earlier, Minister of Construction and Transport Erhan Arıklı noted that the government has the necessary quorum and the bill could be passed in any case, but a desire for public and political consensus remains. Prime Minister Ünal Üstel is expected to issue an official statement following the group meeting.

The practical significance for residents of North Cyprus is that the bill concerns payments and income indexing in the public sector; the decision to return the law to committee delays the final approval of the measures and prolongs the negotiation period between the authorities and trade unions.