Cyprus Employers and Industrialists Federation expresses concerns over pension increase proposals

The Cyprus Employers and Industrialists Federation (OEB) issued a statement on Friday expressing strong concern regarding recent public proposals for pension increases. The OEB claims these suggestions are disconnected from economic realities and cautioned against relying on oversimplified approaches. The federation stated that significant pension hikes would necessitate either an increase in insurance contributions, an extension of the retirement age, or a combination of both measures. They warned that failing to adopt these structural changes would undermine the long-term sustainability of the Cypriot economy. Furthermore, the OEB emphasized that pension adjustments must be tied to economic growth rates and the principle of proportionality between contributions and benefits. The organization stated it will not support proposals it deems fiscally irresponsible. Finally, the federation called for pension reforms to be handled exclusively through tripartite social dialogue involving relevant government institutions and social partners.