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2025 Social Insurance Premium Support: A Guide for North-Cyprus Employers Published on . Posted in .

2025 Sosyal Sigorta Prim Desteği: İşverenler İçin Rehber

On May 15, 2025, a new Decree with the Force of Law came into effect. According to this decree, a significant portion of social insurance premiums will be covered by the government from May to December (for 8 months). Here is a quick guide to easily benefit from this support:

  1. Purpose of the Decree 
  • To reduce the financial burden of businesses and improve cash flow. 
  • To protect employees' jobs and particularly encourage female employment. 
  • To strengthen employment opportunities for women and young people.

     2. Duration of Support 

      May 2025 – December 2025 (total of 8 months).

     3. Who Can Benefit? 

  • Private sector workplaces operating in the TRNC and registered under the Social Insurance Law. TRNC citizens, Turkish citizens, and other foreign nationals (at different rates).  
  • Sectors excluded from support: Markets, market suppliers (except direct manufacturers), medical suppliers, pharmacies, pharmaceutical warehouses, petrol stations, gas suppliers (excluding bottled gas distributors), banks, insurance companies, exchange offices, finance companies, betting offices, casinos, nightclubs, kindergartens, primary and secondary education institutions, universities, GSM operators, quarries, internet providers, cooperatives and affiliated businesses; cleaning services, private security services, home services, independent organizations (excluding Professional Associations and Chambers), other public institutions and organizations, autonomous or revolving-budgeted workplaces, workplaces belonging to foreign state-owned public institutions, establishments where the state has at least 10% shares, establishments under state management and control.

     4. Support Rates 

  • For female TRNC citizen employees, the employer pays only the employee’s premium; the government covers the entire employer contribution. 
  • For male TRNC citizen employees, the government covers 80% of the employer contribution, while the employer pays the employee’s premium and the remaining 20%. 
  • For Turkish citizens and other foreign employees, the government covers 20% of the employer contribution (this rate is 25% for agriculture, livestock, manufacturing, production, and hotel sectors).

     5. Conditions for Eligibility 

  • No outstanding premium debts, or debts must be restructured with regular payments. • No layoffs during the support period (except for mandatory circumstances); otherwise, the support will be terminated. 
  • Premiums must be paid on time to the Social Insurance Department by the 15th of each month. Late payments result in loss of support for that month. 
  • Payroll details must be accurate; errors will result in the repayment of support within 15 days.
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