North Cyprus Social Insurance: An Employer Guide
This guide summarises the social insurance duties of employers in the Turkish Republic of Northern Cyprus: what the system covers, the registration requirement, insurable earnings brackets and how premiums are structured. Because premium rates vary by category and by current decree, exact rates should always be confirmed from the live tables of the Social Insurance Department.
Two parallel systems
Social security in North Cyprus runs through two separate laws. People who entered the system earlier fall under the Turkish Cypriot Social Insurance Law, while those first insured after a certain date fall under the Social Security Law. Which rules apply to an employee depends on when they were first insured.
Risks covered
- Old age (retirement)
- Invalidity
- Death and survivor benefits
- Sickness
- Maternity
- Work accident and occupational disease
The employer registration duty
An employer must register an employee for social insurance before they start work. Employing someone without insurance leads to administrative penalties as well as backdated premiums and late charges. Entry notifications and monthly premium filings are handled through the Social Insurance Department.
Insurable earnings brackets (2026)
Premiums are calculated not on a flat wage but on the insurable earnings bracket to which the employee belongs. The figures effective from 1 January 2026 are:
| Measure | Amount |
|---|---|
| Lowest bracket | 60,618.00 TL (the 2026 minimum wage level) |
| Highest bracket | 424,326.00 TL |
The number of brackets and the lowest one that may be selected depend on the applicable law and the employee’s age. See the insurable earnings page for the current table.
How premiums are structured
A premium is made up of an employee share, an employer share and a state contribution. The rates vary by the category of the insured person (local worker, foreign work permit holder, third country national and so on) and by the decrees in force, and a separate rate is added for the work accident branch. For that reason, rather than quoting a single fixed rate, we recommend confirming the current rate for each category in your business from the Social Insurance Department investment types table. Premium rates are updated from time to time by decrees published in the Official Gazette.
What to watch for
- Keep premium calculations aligned with changes in the minimum wage and brackets; when the minimum wage rises, the lowest bracket rises too.
- Social insurance and the Provident Fund are separate duties that run in parallel.
- Review payroll and premiums together with minimum wage and working conditions and contract obligations.
Frequently asked questions
What exactly is the premium rate?
There is no single rate. It varies by the category of the insured person and by the decree in force. Use the Social Insurance Department investment types table for the current figure.
What happens if I employ someone without insurance?
Backdated premiums, late charges and administrative penalties apply. The exact amount and process should be confirmed with the Department.
Sources
This article is for general information only and rates and brackets may change with legislation. Contact us for payroll and premium calculations specific to your business.