Bill introduced to parliament for up to 40% salary deduction for housing and food

The TRNC government has submitted a bill to parliament providing for the possibility of withholding up to 40% of the minimum wage to cover housing and food expenses. The initiative was presented by Prime Minister Ünal Üstel.

According to the head of government, the document aims to formalize a previously introduced temporary regulation that was in effect in 2025 and create a transparent and permanent legal framework. He emphasized that the goal of the reform is to ensure fairness in labor compensation and market balance.

Under the bill, the deduction is only possible if there is a separate written employment contract and the consent of both parties. Furthermore, the measure is not mandatory: if the employee does not agree, they retain the full right to receive the minimum wage without deductions.

Authorities note that the initiative is intended to eliminate existing inequality. Currently, foreign workers, especially in construction and agriculture, often receive housing and food from employers, whereas local employees pay for these expenses themselves. This leads to differences in actual income levels, despite formally equal wages.

The government believes the new rules will make the labor market more transparent, reduce informal employment, and ensure economic stability. The measure will also provide employers with greater flexibility, especially in sectors experiencing a shortage of local labor.

A similar regulation was already introduced by decree in July 2025. The new bill aims to establish it on a permanent basis. The government stresses that protecting workers' rights remains a priority while maintaining conditions for production development.