Wages and Prices
	Minimum wages, in North Cyprus, are fixed by law. Basic wages are subject to inflation indexing under the so called cost of living allowance, or COLA.  A commission composed in equal parts of the government, unions, and employers decides on minimum wages. The trade union movement objects to the composition because it says the state is also an employer. Minimum earnings are fixed annually and are untaxed. In the public sector there are increments on the basic rate plus additional payments for seniority etc. These are set according to a schedule compiled by the State Planning Organisation.
	Changes in Minimum Wage in North Cyprus (1977-2003)
	Years Minimum Wage (TL)   Date of Coming into Action 1977 1,820   06 May 1977 1995 9,420,000   01 January 1995   11,590,000   01 September 1995 1996 14,800,000   01 January 1996 1997 23,000,000   01 January 1997   33,800,000   01 September 1997 1998 50,250,000   01 January 1998   67,000,000   01 September 1998 1999 85,000,000   01 January 1999   103,000,000   01 June 1999   115,000,000   01 September 1999 2000 137,000,000   01 January 2000   160,000,000   01 July 2000 2001 200,000,000   01 January 2001   240,000,000   01 August 2001 2002 320,000,000   01 January 2002   380,000,000   01 October 2002 2003 440,000,000   01 January 2003   500,000,000   01 August 2003
	A COLA is paid on the increments. In the private sector the COLA is optional and very often is not paid, according to the trade union  officials. Public sector workers are paid a COLA every two months, those in the private sector annually. There is, as a consequence, a lag in both sectors but public sector employees are far better off than their private sector counterparts. Strong consumer demand in North Cyprus, much of it satisfied by imports from Turkey and Great Britain, and the use of the Turkish Lira have led to the importations of mainland inflation. In 2004 the rate stood at 9%, while as of December 2005 it stands at 8% after years of high inflation levels.
	Sources
	State Planning Organisation Annual Statistics, Nicosia. Olgun, M.E., (1991), `Socio-Economic Profile of the Turkish-Cypriot Community and the Main Issues to be Addressed in Preparing for a Political Solution to the Cyprus Problem', A Research Report prepared for the UNDP - Development Support Services, published by EMU, no: 0003-12-01-92, Nicosia.