Cyprus government identifies pension reform as 2026 priority

On Tuesday, Cyprus Minister of Labor Marinos Mousiouttas announced that pension reform is the government's primary social priority for 2026. Speaking at a meeting of the European Economic and Social Committee in Nicosia, the Minister emphasized the need to balance the long-term sustainability of the Social Insurance Fund with the adequacy of pension payments. The proposed reform aims to address challenges posed by demographic aging and rising life expectancy. The first phase of this initiative focuses on the first pillar, specifically the Social Insurance Fund. Officials intend to modernize the fund's investment policy and increase minimum pensions. The goal is to ensure that no pension leaves a beneficiary below the poverty line or threshold of decent living. The Minister stated that maintaining this balance is a non-negotiable requirement for the administration.