PM Ustel Unveils New Incentive Package, Raises Employment Support To 350 Million TL

The package aims to protect workers' purchasing power while supporting employers, production and investment, with around 80,000 employees expected to benefit.

The new measures include higher social security contribution subsidies for Turkish Cypriot citizens, increased wage support for first-time insured employees, additional incentives for strategic sectors and new programmes to encourage the employment of people with disabilities in the private sector.

In a statement, Ustel said the government's priority was to protect employees while ensuring businesses remained competitive.

"Strong economies are built on strong production, and strong production depends on strong employment," he said.

According to the prime minister, the new package was prepared alongside the latest minimum wage adjustment to balance higher labour costs with measures aimed at sustaining investment and job creation.

Support Increased To 350 Million TL

Ustel said monthly employment and social security contribution support, previously worth around 270 million TL, would rise to 350 million TL under the new scheme.

The existing contribution support programme will continue for businesses operating in agriculture and livestock, manufacturing, the automotive sector, construction, transport, restaurants, cafés, retail trade, hotels, barber shops, hairdressers, beauty centres, pharmacies, accounting services, nurseries, study centres, medical laboratories, production cooperatives, associations, professional organisations and trade unions.

Additional Incentives For Strategic Sectors

The government will also introduce sector-specific incentives for manufacturing, agriculture and livestock, and the hotel industry to help businesses expand production, continue investments and protect employment.

Under the new package:

• Social security contribution support for Turkish Cypriot women will increase from 80 per cent to 100 per cent.
• Support for Turkish Cypriot men will rise from 60 per cent to 80 per cent.
• Monthly wage support for employers hiring first-time insured Turkish Cypriot citizens will increase from 20,000 TL to 35,000 TL.
• The government will also cover 100 per cent of social security contributions for these employees for a specified period.
• Businesses will be offered low-interest loan packages as part of the new support programme.

Ustel said the measures reflect the government's commitment to supporting workers, encouraging investment and strengthening the economy while prioritising the employment of Turkish Cypriot citizens.