North Cyprus Retirement and Old Age Pension Guide
This guide summarises retirement and old age pension conditions in the Turkish Republic of Northern Cyprus. The key distinction is whether insurance began before or after 1 January 2008; two different systems run in parallel. The rules are based on the social insurance legislation.
Two systems: before and after 2008
The date of 1 January 2008 determines which law applies. Those insured before that date fall under the older Turkish Cypriot Social Insurance Law; those insured on or after it fall under the Social Security Law (73/2007).
Insured before 1 January 2008
People in this group can qualify for retirement by one of two routes:
- 25 years of contributions, or
- 15 years of insurance and at least 600 contribution days in the last 5 calendar years before applying
The retirement age is graduated between 50 and 60 depending on the person's position as at 1 January 2012.
Insured on or after 1 January 2008
There are three routes in this group:
| Route | Age | Contribution days |
|---|---|---|
| 1 | 60 | 9,000 |
| 2 | 63 | 5,400 |
| 3 | 55 | 9,000 |
The third route is the option that allows earlier retirement.
How the pension is set
Under the Social Security Law (73/2007), the old age pension is the updated average monthly earnings multiplied by the accrual rate.
The accrual rate is based on the number of contribution days:
- For the first 5,400 days: 2.5% for each 360 days
- Beyond 5,400 days: 2% for each 360 days
For example, an insured person with 25 years (9,000 days) of contributions reaches a rate of 57.5%: 37.5% for the first 15 years and 20% for the next 10. Retiring before age 60 reduces the pension by 6% for each year.
These rates are for those insured under Law 73/2007. For an exact pension amount, consult the current Social Insurance Department legislation.
Relationship to other benefits
Retirement falls under the old age branch of social insurance. Disability and survivors' pensions are separate branches. In addition, an employee who leaves may be entitled to their Provident Fund savings. For general employer obligations, see our Social Insurance Employer Guide.
Frequently asked questions
What is the retirement age in North Cyprus?
For those insured before 1 January 2008 the age is graduated between 50 and 60. For those insured after that date, one of three routes applies: age 60 with 9,000 days, age 63 with 5,400 days, or age 55 with 9,000 days.
What is the difference between the two systems?
The start date of insurance is decisive: before 1 January 2008 the older law applies; on or after that date, Law 73/2007 applies.
What determines the pension amount?
It is the updated average monthly earnings multiplied by the accrual rate, which is 2.5% for each 360 days in the first 5,400 days and 2% thereafter.
Sources
- Social Insurance Department: laws
- Social Insurance Department: income brackets
- Turkish Cypriot Social Insurance Law (EMU)
This article is for general information; conditions and amounts can change with legislation. For your personal retirement position, contact the Social Insurance Department or us.