Economic organizations warn against Social Insurance Fund depletion

Economic organizations in Northern Cyprus have raised concerns regarding a planned 2 billion TL extraordinary payment to approximately 48,000 social insurance pensioners, scheduled for November. The payment, which amounts to roughly 40,000 TL per person, is intended to be funded by the Social Insurance Fund.

A joint statement by the Cyprus Turkish Employers Association, Cyprus Turkish Chamber of Industry, Cyprus Turkish Chamber of Commerce, and the Cyprus Turkish Chamber of Craftsmen and Tradesmen (KTEZO) requested clarification on the legal and financial basis for this disbursement. The organizations expressed concern over the impact such a large withdrawal will have on the fund's actuarial balance and long-term stability.

KTEZO specifically warned against using the fund's resources for political purposes ahead of elections, characterizing the move as an interference with the will of insured workers and business owners. The organizations noted that the fund is built from contributions made by employees and employers and serves as a primary future security guarantee. They suggested that instead of a one-time payment, resources could be used to reduce social insurance premium burdens on employers and employees to support registered employment and alleviate economic pressure on businesses.