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Payroll in North Cyprus

Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.

Payroll at a glance

2026

Currency

TRY ₺ (Turkish Lira)

Employer contributions

~13.5% employer SS

Minimum wage

~19,500 TRY (linked to Turkish minimum wage)

Payment frequency

Monthly

Calendar year (Jan 1 to Dec 31)

Capital

North Nicosia (Lefkoşa)

Timezone

EET (GMT+2)

Employee or contractor

Which one fits your hire?

If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.

Employee

~28,375 TRY total

/month

For a gross salary of

25,000 TRY gross/month

Setup

Local entity or employer of record, plus tax and social security registration

Employer contributions

~13.5% employer SS

Mandatory extras

Annual Bonus

Monthly admin

Monthly payroll → SSD contributions → withholding → annual return

Contractor with Ontop

No local entity

$49

/contractor/month

The agreed rate, plus Ontop from $49 per contractor per month.

Sign a contract, yours or an Ontop template. No local registration on your side.

No employer contributions: the contractor handles their own taxes and social security.

One payment per invoice, in one payroll run.

Paid into their Ontop Global Account in USD.

Hire contractors with Ontop

See the full side-by-side comparison

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What it takes
Employee
Contractor with Ontop
Setup
Local entity or employer of record, plus registration with
Maliye Bakanlığı (Ministry of Finance TRNC)
Sosyal Sigortalar Dairesi (TRNC SSD)
Sign a contract, yours or an Ontop template. No local registration on your side.
Employer contributions
~13.5% employer SS
None. The contractor handles their own taxes and social security.
Mandatory extras
Annual Bonus
Paid leave
14 working days minimum
Maternity leave
16 weeks
Whatever you agree in the contract.
Monthly admin
Monthly payroll → SSD contributions → withholding → annual return
One payment per invoice.
Ending the relationship
30 days per year of service
Per the contract terms.
Example monthly cost
~28,375 TRY total
for a gross salary of
25,000 TRY gross/month
The agreed rate, plus Ontop from $49 per contractor per month.

A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.

Hiring here: the full breakdown

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Payroll guide

Everything you need, one topic at a time

What it costs to employ someone

Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.

Total monthly cost

~28,375 TRY total

Example gross salary

25,000 TRY gross/month

~17,250 TRY net

Net pay to the employee

Tax and employee contributions

Withheld from gross pay

~3,375 TRY SS

Employer contributions on that salary

Employer contributions

~13.5% employer SS

Employee contributions

~9% employee SS

Total cost above gross

~15% above gross

Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.

Minimum wage and salaries

What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.

National average

~20,000 TRY

Per month

Nicosia (North)

22,000 - 35,000 TRY

~20%

Famagusta (Gazimağusa)

18,000 - 28,000 TRY

~10%

Monthly gross. National average salary per year:

~240,000 TRY

Minimum wage

~19,500 TRY (linked to Turkish minimum wage)

Paid:

Monthly

Extra pay

Annual Bonus

Discretionary

December

Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.

Taxes, filings and deadlines

Who collects what, how often, and what happens when a payment is late.

Income tax brackets

Progressive up to 35% (aligned to Turkish rates)

Tax year:

Calendar year (Jan 1 to Dec 31)

Filing calendar

Monthly by 15th

Social security payments

March 31

Income tax

By end of January

Employee tax certificate

Gelir belgesi

March 31

Annual return

Gelir Vergisi Beyannamesi

Late payment penalties

Late SS: 10% surcharge; late tax: interest

Who collects what

Maliye Bakanlığı KKTC

Income tax

SSD (Sosyal Sigortalar Dairesi)

Social security

Çalışma Dairesi

Labor law

Mandatory benefits and leave

The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.

Annual leave

Yıllık izin

14 working days minimum

Public holidays

15 public holidays

Sick leave

Hastalık izni

Employer first 3 days; SSD from day 4

Maternity leave

16 weeks

100% SSD

Employment contract types

The contracts you can use, and what ending an employment relationship costs.

Permanent

Belirsiz Süreli İş Sözleşmesi

Fixed term

Belirli Süreli İş Sözleşmesi

Independent contractor

Serbest Çalışan

Collective agreements

Toplu İş Sözleşmesi

Ending employment

Kıdem Tazminatı

How it is calculated

30 days per year of service

Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.

Common payroll mistakes and how to avoid them

The errors that most often trigger back payments and penalties here, and what to do instead.

Limited International Recognition Impact

Risk Level: HIGH

North Cyprus is only recognized by Turkey, creating legal complexity for international employers. Contracts must explicitly specify applicable law (TRNC law).

Currency Volatility Risk

Risk Level: HIGH

North Cyprus uses the Turkish Lira, which has experienced significant inflation. Wage contracts denominated only in TRY may fall below effective minimum standards rapidly.

Ontop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.

150+

countries

$49

per contractor per month

1 run

to pay your whole team

USD

Global Account for every contractor

FAQ

Frequently asked questions

Can Ontop run payroll for employees in this country?

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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.

How much does it cost to employ someone here?

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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.

Is there a mandatory bonus or extra month?

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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.

What taxes are withheld from an employee's pay?

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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.

Can I see the total cost before hiring?

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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.

When should I hire a contractor instead of an employee?

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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.

What are the main compliance risks?

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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.

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