As the new year started, Cyprus saw big economic differences. This was clear in how wages were changed in the south and the north. The south, controlled by the government, raised the minimum wage. They want to help workers and keep the economy strong. However, the north made a smaller wage increase. They also added a special payment. This made labour unions very unhappy.
In early 2026, officials in the north announced a new minimum wage. It is 60,618 Turkish lira for the first six months. This is about €1,237 before taxes. Many workers and unions think this is not enough. The decision was approved by a vote. It also includes an extra payment of 12,000 Turkish lira (€245). This payment is for six months. It is only for "citizens of the TRNC" who pay social insurance. Officials say the total increase is 22.9%.
But, labour groups in the north are very critical. Ahmet Serdaroğlu, a union leader, said the increase is "ridiculously low." He said it does not cover the rising cost of living. Unions wanted a bigger raise to match inflation. There are now arguments between employers and the government. Workers feel ignored even though their wages went up a little.
Meanwhile, the Republic of Cyprus in the south chose a different way. Before Christmas, the government approved a minimum wage increase. From January 1, 2026, the minimum wage is €1,088 per month. This is for full-time workers with six months at the same job. For new employees, the wage rose from €900 to €979. This plan helps low-paid workers. It also protects jobs and the economy. The Republic of Cyprus will keep these wages for two years.
These different plans show the difficult economy in Cyprus. The island is also divided politically. The north faces protests from unions and unhappy workers. The south is focusing on managing its economy well. It is not yet clear how these different wage policies will affect jobs and people's lives on the island.