“They are not obliged to increase it”: residents of Northern Cyprus were shocked by a statement about wage indexation

The chairman of the TRNC Employers' Union, Metin Arhun, said that there is no provision in the legislation that requires the minimum wage to be increased in line with inflation. According to him, many mistakenly believe that such indexation is mandatory, although the final decision is made each time by a special commission.

The statement came amid calls from trade unions to urgently convene the minimum wage commission. Workers' organizations insist that, due to the continuous rise in prices, residents' wages are no longer keeping pace with the real cost of living.

Arhun, in turn, argues that the problem is not limited to wages alone. In his view, the authorities should focus on lowering prices and supporting the economy, since endless pay increases only add pressure on businesses, slow production and push prices up.

Employers also cite their own calculations. They claim that the minimum wage in Northern Cyprus is already among the highest relative to the average income of the population. Arhun previously stated that on this indicator the TRNC is ahead of many European countries, despite the fact that overall income levels remain significantly lower.

The cost of living is causing especially sharp disputes. Employers insist that many goods and utility services in Northern Cyprus are cheaper than in EU countries and even in the south of the island. Trade unions, meanwhile, respond that residents are increasingly complaining that they cannot cover housing, food and everyday expenses.

Now all attention is focused on the meeting of the minimum wage commission, which could take place in the coming weeks. Its decision will directly affect tens of thousands of private sector workers and could become one of the main political topics of this summer in Northern Cyprus.