New cost of living salary adjustment regulations announced in northern Cyprus

The coalition government in northern Cyprus, consisting of the National Unity Party, the Democratic Party, and the Rebirth Party, has announced changes to the Automatic Cost of Living Adjustment (ATA) for salaries. The administration states these measures are necessary due to the economic impact of the conflict in the Middle East. Under the new decree, 50% of the cost of living increase scheduled for the end of June will be paid immediately, while the remaining 50% will be withheld and distributed no later than January 2027. This withholding applies only to those earning net salaries exceeding 75,000 Turkish Liras, with the guarantee that no take-home pay will drop below the 75,000 TL threshold. Exemptions are granted for people with disabilities, welfare recipients, and pensioners. The government asserts that the move aims to protect purchasing power, though opposition parties and certain public sector unions have criticized the decision and accused the administration of politicizing the issue. A previous decree has been canceled and replaced by this new regulation published in the official gazette.