Increase in minimum wage in Northern Cyprus immediately triggered price hikes on cigarettes, beer, food, transport, and services

Following the rise in the minimum wage in Northern Cyprus, prices are increasing — both for specific categories of goods and services.

The minimum wage for the second half of 2025 was increased by 17.79%, reaching 51,202 TL gross (44,546 TL net).

Such a significant raise, despite arguments from all sides, is causing a ripple effect on prices.

Before the decision was finalized, representatives of the Turkish Cypriot Chamber of Commerce had warned that “every increase in the minimum wage leads to another round of price increases.”

Real changes are already being observed — particularly in excise goods.

At the very least, immediately after the mid-July announcement, price hikes were recorded on cigarettes and beer.

Prices for food items, especially those with a high import share, are also rising.

As of July, during the first six months, everyday consumer goods showed mixed trends: some imported fruits and vegetables became cheaper (e.g., watermelon, melon, tomatoes), while others rose in price — especially lemons (+86%), lettuce (+50%), and kiwi (+34%).

This is partly due to currency fluctuations: the Turkish lira depreciated by 28% against the euro, making imports more expensive.

As for household goods and services, statistics show a price rise: clothing and footwear — +5%, restaurant and hotel services — +8.1%, transport — +2.4%, and utilities — about +1.2% over the year.

In other words, while the minimum wage hike has benefited workers’ incomes, it has also triggered higher prices, especially in sectors where costs are largely driven by imported inputs, excise taxes, and wages.

The economic situation remains tense: with current inflation at around 17.8% for the first half of the year and the lira weakening, the authorities opted for a compromise — raising wages below inflation to avoid sharp business cost increases.

Thus, the price surge following the minimum wage increase is already noticeable — especially for alcoholic beverages, tobacco, transport and hotel services, and goods with an imported component. Seasonal fruit and vegetable prices are showing adjustments: some items are becoming more expensive, others cheaper, depending on harvest and logistics.

Given these trends, Northern Cyprus residents should expect higher daily expenses and possibly revise their budgets, especially in price-sensitive categories.