Cost-of-Living Regulation Enters Into Force as Decree Published in Official Gazette

The regulation includes changes to cost-of-living adjustments that unions had opposed, triggering strikes and protests across the country. The timing of the decision drew attention, as the decree was issued shortly after a parliamentary session on the matter was adjourned and unions announced they were suspending industrial action in anticipation of a compromise.

Draft laws on the cost-of-living adjustment had been discussed in the Republic’s Assembly late the previous night, with proceedings halted around 04:00 in the morning following a recess. Afterward, unions said they were pausing strikes and protests in the expectation that negotiations would continue.

However, the Council of Ministers enacted the decree, citing its authority under Article 112 of the Constitution, and brought it into force upon publication in the Official Gazette.

Under the decree, the cost-of-living allowance for public employees and pensioners will follow a revised implementation schedule for 2026. The increase accruing from January 1, 2026 will be applied in two consolidated phases as a one-off arrangement. Accordingly, a three-month increase will be reflected in salaries in April 2026, while a nine-month increase will be applied in January 2027.

The decree states that the regulation was introduced taking into account the impact of developments in the Middle East on the economy, energy costs, and public finances, and that it took effect as of the date of publication.

Meanwhile, uncertainty remains over whether unions will resume strikes and protests following the move.