Minimum Wages (Amendment) Bill: full text and official documents
The Minimum Wages (Amendment) Bill (No. 391/5/2026) proposes changes to the Minimum Wages Law of 1975. The bill has been published in the Official Gazette and opened to public opinion; within twenty days of publication, concerned real and legal persons may submit written views to the Assembly Presidency. Below is a clause by clause summary and the download links for the official documents.
Why the change
Under the current system, support such as lodging and food that employers provide to foreign workers creates an earnings and expense imbalance against local workers, who meet all of their costs from their own income. The bill aims to close this gap between local and foreign workers, protect employment continuity, and support household purchasing power.
New definitions (Article 2)
Three new terms are added to the interpretation article:
- Nutrition: describes the criteria under which an adult individual in the household cost of living index can be fed.
- Lodging: describes a structure with a bed and furnishings, uninterrupted electricity and water, climate control and ventilation, and one shower and toilet for every five people.
- Life Support Service Contract: describes the contract stating that living needs such as lodging and food will be provided to the worker.
Employer responsibility and the offset (Article 3)
An employer may not pay less than the announced minimum wage and may not discriminate between women and men doing the same work under the same conditions. Items such as marriage, child, family and clothing allowances may not be deducted from the minimum wage.
However, employers of foreign nationals brought from countries without a labour agreement with the TRNC may, provided it is stated in the Life Support Service Contract and they cover the workers' living costs (housing and food), make deductions from the minimum wage of no more than 40% in total. This is applied as 15% lodging and 25% food.
The food deduction is calculated as follows:
- 5% where breakfast is provided
- 10% where lunch is provided
- 10% where dinner is provided
The total food deduction may not exceed 25% of the wage.
Offences and penalties (Article 4)
An employer who pays below the announced minimum wage or neglects to apply the minimum wage is deemed to have committed an offence and may face a fine of up to four times the monthly minimum wage, up to one year of imprisonment, or both. The same penalties apply to employers who make a 40% deduction without covering living costs, or who deduct more than 40%. The court may also order the employer to pay the worker the unpaid wage.
Entry into force
If enacted, the bill would enter into force from the date of its publication in the Official Gazette. At this stage the bill is still in the consultation process and the final text may differ.