Cyprus labor minister announces pension reform schedule and clarifies key policy details

Minister of Labour Marinos Mousiouttas announced that the government's pension reform bill will be approved by the Council of Ministers in June and submitted to Parliament in early July. During this period, the ministry will release actuarial studies supporting its proposals. The Minister explicitly ruled out raising the minimum pension to the level of the minimum wage of 1,088 euros, citing the financial instability of the Social Insurance Fund. Regarding the 12% actuarial penalty for those retiring at age 63, the government is considering a partial reduction rather than full abolition. This adjustment is expected to result in increased pension payments for those who have already retired prematurely. Stakeholders with alternative proposals have been invited to submit their plans to Parliament for expert evaluation. The Ministry emphasized that its final proposals are designed to increase low pensions while maintaining the viability of the system.