The Council of Ministers has reduced the late-payment surcharge (gecikme zammı) on overdue social insurance contributions in North Cyprus. Two Decrees Having Force of Law, published in Official Gazette No. 143 of 30 July 2026 (Special Issue), cover contribution debts accrued between 1 January 2010 and 30 June 2026: Decree 85/2026 for employers within the scope of the 16/1976 Turkish Cypriot Social Insurance Law, and Decree 86/2026 for employers within the scope of the 73/2007 Social Security Law, on the same terms. Employers unable to pay these debts apply in writing to the Sosyal Sigortalar Dairesi by 15 September 2026, stating name, address, telephone, e-mail where available, and signature; the Dairesi replies in writing, with reasons, within 1 month of the application date at the latest.
Payment plans
- Lump-sum payment: if 100% of the debt together with only 10% of the total surcharge accrued up to the payment date is paid in a single payment by 23 October 2026, the contribution debt and the surcharge are deemed paid in full.
- Instalment plan (for employers not choosing lump-sum payment; because the Sosyal Sigortalar İdare Meclisi holds the power to reset the final payment date, whether these dates will change later is not yet settled) — where the debt and the surcharge attributable to it are paid at the rates below by 23 October 2026, the surcharges accrued up to the payment date are frozen:
- (A) 25% of the debt and 90% of the surcharge attributable to that portion
- (B) 50% of the debt and 65% of the surcharge attributable to that portion
- (C) 65% of the debt and 40% of the surcharge attributable to that portion
- An employer paying under option (A), (B) or (C) may pay the remaining part of the debt, together with the frozen surcharge at the rate of the option chosen (90%, 65% or 40% respectively), in at most 36 monthly instalments beginning from the start of the month following that payment; once payment is completed the debt is treated as fully closed. If the employer fails to pay 3 consecutive instalments, the restructuring lapses and the remaining total is collected as an ordinary contribution debt (under Article 90 of Law 16/1976 or Article 86 of Law 73/2007).
- Persons employed under a contract of service or of apprenticeship may not apply to benefit from these Decrees in respect of the contribution and surcharge debts payable on their behalf by their employers.
- To benefit from the restructuring, the employer must additionally have paid in full, on a workplace-registration basis, all contribution debts arising up to 31 December 2009 in respect of itself and all of its employees, and must have restructured its debts for the period after 1 January 2010 under the rules of this article; the employer also pays the debts of the employees on the same registration under a plan no lower than the one chosen for its own debt.
- Each workplace registered to the employer is assessed separately.
- Employers who have benefited from temporary Article 21 of Law 16/1976 or temporary Article 9 of Law 73/2007 and are complying with the restructuring rules may benefit from these Decrees only for debts accrued between 1 April 2023 and 30 June 2026.
- Employers who have benefited from Decree 33/2025 (scope of Law 16/1976) or Decree 32/2025 (scope of Law 73/2007) and are complying with the restructuring rules may benefit from these Decrees only for debts accrued between 1 August 2025 and 30 June 2026.
- Employers against whom a civil action has been brought may not benefit from the rules of this article without paying the costs of the action.
- Where insured persons fail to pay all of their instalments by the end of the instalment period, the remaining total is treated as a contribution debt and collected under the collection article of the relevant Law.
| Option | Paid by 23 October 2026 | Surcharge on that portion | Balance over up to 36 months |
|---|---|---|---|
| Lump sum | 100% of the debt | 10% of the accrued surcharge | None — debt closed |
| (A) | 25% of the debt | 90% | 75% of the debt and 90% of the frozen surcharge |
| (B) | 50% of the debt | 65% | 50% of the debt and 65% of the frozen surcharge |
| (C) | 65% of the debt | 40% | 35% of the debt and 40% of the frozen surcharge |
What this means for employers
In practice, an employer paying in a single payment closes the debt while paying only 10% of the accrued surcharge, whereas an employer choosing an instalment plan spreads the principal over 36 months and forgoes between 40% and 90% of the surcharge.
To work out which payment plan fits your position, contact N.Akman & Co.
