From 1 October 2026, permanent residence permit (Daimi İkamet İzni) holders in North Cyprus pay social security contributions at TRNC citizens' shares (Decree-Law 112/2026, Article 4).
What Changed Compared with Decree 83/2026?
Decree-Law 112/2026 (Official Gazette No. 193, 2 October 2026) repeals Decree-Law 83/2026, without prejudice to acts done under it (Article 6), and takes effect on 1 October 2026, the day before publication (Article 7). Its only change adds permanent residence permit holders to group (a), which already covered TRNC citizens and nationals of a country that has a social security agreement with the TRNC containing an equal-treatment condition (Article 4(1)(B)(a), (Ç)(a); 4(2)(B)(a), (Ç)(a)). Those not otherwise in group (a) were previously in group (b). An employee's share falls from 4.25 to 2.25 for sickness and from 8.25 to 5.5 for invalidity, old-age and death; the employer share is unchanged and the State Budget pays the gap. Self-employed shares fall from 6.5 to 4.5 and from 15.25 to 12.5. Total rates did not change.
| PERMANENT RESIDENCE PERMIT HOLDER | 83/2026 — GROUP (b) | 112/2026 — GROUP (a) |
|---|---|---|
| Employee — sickness insurance (6.5%) | Employee 4.25, employer 2.25, no State share | Employee 2.25, employer 2.25, State Budget 2 |
| Employee — invalidity, old-age and death insurance (16.5%) | Employee 8.25, employer 7, State Budget 1.25 | Employee 5.5, employer 7, State Budget 4 |
| Self-employed — sickness insurance (6.5%) | Insured person 6.5, no State share | Insured person 4.5, State Budget 2 |
| Self-employed — invalidity, old-age and death insurance (16.5%) | Insured person 15.25, State Budget 1.25 | Insured person 12.5, State Budget 4 |
Unchanged:
- Total rates: employment injury and occupational disease insurance between 0.5% and 6%, sickness 6.5%, maternity 1%, invalidity, old-age and death 16.5%, unemployment 1.5% (Decree-Law 112/2026, Articles 4(1) and 4(2)).
- The employment injury and occupational disease, maternity and unemployment insurance rules (Articles 4(1)(A), (C), (D); Articles 4(2)(A), (C)).
- Employer shares: 2.25 for sickness and 7 for invalidity, old-age and death (Articles 4(1)(B) and 4(1)(Ç)).
- The shares of TRNC citizens and of nationals of countries with an equal-treatment social security agreement, and the shares of insured persons outside group (a) (Articles 4(1)(B), 4(1)(Ç), 4(2)(B), 4(2)(Ç)).
Current Rates
| ITEM | INSURANCE BRANCH AND GROUP | TOTAL | EMPLOYEE | EMPLOYER | STATE BUDGET |
|---|---|---|---|---|---|
| 4(1)(A) | Employment injury and occupational disease insurance (set by tariff) | 0.5% to 6% | — | All | — |
| 4(1)(B)(a) | Sickness insurance — TRNC citizens, insured persons holding a permanent residence permit, or nationals of countries with a social security agreement with the TRNC containing an equal-treatment condition | 6.5% | 2.25 | 2.25 | 2 |
| 4(1)(B)(b) | Sickness insurance — insured persons outside sub-item (a) | 6.5% | 4.25 | 2.25 | — |
| 4(1)(C) | Maternity insurance | 1% | 0.5 | 0.5 | — |
| 4(1)(Ç)(a) | Invalidity, old-age and death insurance — TRNC citizens, insured persons holding a permanent residence permit, or nationals of countries with a social security agreement with the TRNC containing an equal-treatment condition | 16.5% | 5.5 | 7 | 4 |
| 4(1)(Ç)(b) | Invalidity, old-age and death insurance — insured persons outside sub-item (a) | 16.5% | 8.25 | 7 | 1.25 |
| 4(1)(D) | Unemployment insurance | 1.5% | 0.75 | 0.75 | — |
| ITEM | INSURANCE BRANCH AND GROUP | TOTAL | INSURED PERSON | STATE BUDGET |
|---|---|---|---|---|
| 4(2)(A) | Employment injury and occupational disease insurance (set by tariff) | 0.5% to 6% | All | — |
| 4(2)(B)(a) | Sickness insurance — TRNC citizens, insured persons holding a permanent residence permit, or nationals of countries with a social security agreement with the TRNC containing an equal-treatment condition | 6.5% | 4.5 | 2 |
| 4(2)(B)(b) | Sickness insurance — insured persons outside sub-item (a) | 6.5% | 6.5 | — |
| 4(2)(C) | Maternity insurance | 1% | All | — |
| 4(2)(Ç)(a) | Invalidity, old-age and death insurance — TRNC citizens, insured persons holding a permanent residence permit, or nationals of countries with a social security agreement with the TRNC containing an equal-treatment condition | 16.5% | 12.5 | 4 |
| 4(2)(Ç)(b) | Invalidity, old-age and death insurance — insured persons outside sub-item (a) | 16.5% | 15.25 | 1.25 |
What This Means in Practice
- Employers: on this arithmetic, a permit-holding employee's deduction falls by 2 points for sickness and 2.75 points for invalidity, old-age and death, 4.75 points in total; the maternity (0.5) and unemployment (0.75) shares and the employer's cost are unchanged.
- Self-employed permit holders: their own share, applied to the declared income bracket, falls by 2 points for sickness and 2.75 points for invalidity, old-age and death.
- The Decree does not specify how permit holding is evidenced or how existing payrolls are updated.
Please don't hesitate to contact N.Akman & Co. with any questions.
