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20 Apr 2026
Turkish Cypriot legislature unanimously withdraws bill on cost-of-living allowance payments

Nicosia, Cyprus. The Turkish Cypriot legislature on Monday unanimously voted to withdraw a bill aimed at cutting payments of the cost-of-living allowance to public sector workers. The bill had prompted a general strike and multiple protests outside the legislature building earlier this month.


Meetings with trade unions and decision to withdraw

Members of the ruling coalition met trade union leaders on Monday morning to discuss the bill, after ‘prime minister’ Unal Ustel announced on April 11 that talks would be delayed for a week following mass protests and the general strike.

After the week elapsed, Ustel told union leaders he intended to withdraw the bill in its current form and send it back to the legislature’s finance committee so elected representatives, union leaders, and other stakeholders could discuss it.

“Since there are differences from the regulation previously discussed at the committee, it has become necessary to withdraw the current bill and re-evaluate it with all the relevant stakeholders,” he said.

Ustel’s comments on social harmony and next steps

Ustel said the ruling coalition’s decision not to proceed with the bill as originally devised “should not be seen as a step backwards”.

“On the contrary, it should be considered a step forward which strengthens social harmony, reduces tension, and prioritises common sense,” he said.

Introducing his plans to the legislature later in the day, Ustel said that “developments around the world have disrupted the balances” of the Turkish Cypriot authorities’ budget for the year.

He said “the occurrence of undesirable events around the world has led to disruptions, shocks, and stagnation,” adding that conflicts in the Middle East have “negatively impacted the economy”.

Ustel also said the ruling coalition has zeroed six taxes related to the import and sale of fuel, stating, “we … have started to take measures so as to prevent or people from feeling the effects of our difficulties”.

Looking ahead to committee discussions, he said, “we will create common ground by embracing everyone and by being in contact with the opposition and with the unions”.


What do you think the finance committee discussions should prioritise as the bill is re-evaluated?

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