Martha Kehagias
The opening weeks of 2026 have brought a familiar argument back to the surface in Cyprus: how much a minimum wage increase is really worth once prices catch up. In both the Greek Cypriot and Turkish Cypriot communities, new decisions on pay have garnered angry reactions among trade unions and unease among employers, even though the numbers themselves look very different.
In the government controlled Republic of Cyprus, the government settled the issue just before Christmas. In the occupied areas, however, a newly announced increase has already triggered protests and a sharp exchange of accusations.
A higher headline figure and deeper frustration in the occupied areas
This week, "authorities" in the occupied areas set the minimum wage for the first half of 2026 at 60,618 Turkish lira. That works out to about €1,237 gross, or roughly €1,076 net. The decision came after the competent committee met for a third time, approving the increase by majority vote.
Trade unions were quick to react, and they were not impressed. They announced plans to appeal, arguing the rise falls well short of what workers actually need. Hür-İş president Ahmet Serdaroğlu described it as “a ridiculously low percentage,” saying employers and the authorities had settled on an increase of just 18.39% despite soaring living costs. According to him, the “government” showed no willingness to cooperate and ignored basic principles of equality.
Officials pushed back. Labor “minister” Oğuzhan Hasipoğlu defended the decision and announced a 12,000 TL (€245) allowance for minimum-wage earners. Half of it, he said, will be paid in advance over six months. The allowance applies only to those paid at the minimum wage, identified as “citizens of the trnc,” whose social insurance contributions are calculated on that minimum. Taken together, Hasipoğlu argued, the package raises the effective increase to 22.9% and offers some protection against current economic pressures.
Unions remain unconvinced. They say temporary and selective allowances do little to solve the deeper problem: shrinking purchasing power in an economy battered by inflation and currency swings.
The Republic of Cyprus: lower numbers, familiar arguments
In the government controlled areas, the debate played out earlier, but the reactions were strikingly similar. Just before Christmas, the government fixed the national minimum wage at €1,088 per month for full-time workers who have completed six months with the same employer, up from €1,000. For those still in their first six months, the minimum rose from €900 to €979.
The cabinet-approved decree came into force on January 1, 2026 and will remain in place for two years. Labor Minister Marinos Moussiouttas said the increase strikes a balance between supporting low-paid workers and protecting jobs and competitiveness. The new rate includes an automatic cost-of-living adjustment of around 2% and is expected to affect about 50,000 workers.
Trade unions were far less enthusiastic. They pointed out that the minimum wage now stands at 57.9% of the median salary, down from 58.5% in 2024 and still below the EU’s 60% benchmark for what is considered a “decent” wage. Employers, led by the Cyprus Employers and Industrialists Federation, warned that the 8.8% rise could push wages up across the labor market and add further inflationary pressure.
Two systems, one shared complaint
At first glance, the minimum wage in the occupied areas appears higher than in the government controlled areas when converted into euros. In reality, the comparison is misleading. In the de facto state, wages are paid in Turkish lira and quickly eroded by inflation and exchange-rate volatility, while the allowance announced alongside the increase is both temporary and limited. In the government controlled areas, the minimum wage is lower in nominal terms but anchored to the euro, with built-in cost-of-living adjustments and a more predictable regulatory framework.
What links both cases is dissatisfaction. Workers say they are falling behind, even after headline increases. Employers warn that higher wage floors threaten competitiveness. The spotlight may have shifted for now, but the underlying question is the same across the island: how to raise pay without deepening economic strain.
With information from Cyprus Mirror and Kathimerini Cyprus.
