Cyprus government details pension reform plan for low-income retirees

Cyprus Minister of Labour Marinos Moushiouttas met with MEP Fidias Panayiotou to discuss upcoming pension reforms, which focus on enhancing support for low-income retirees. The Minister stated that while some low pensions could increase by up to 50%, the adjustments will not be uniform and will depend on individual contribution history and duration of employment. Current minimum pensions ranging from 480 to 500 euros may rise significantly, though those receiving additional state support via the 'small cheque' will see smaller net gains as their supplementary payments are adjusted. Funding for these increases will be secured by introducing mandatory contributions for individuals with passive income, such as rent and dividends, and by improving enforcement against undeclared labor. The Minister explicitly dismissed claims of a universal minimum pension rise to 1,088 or 1,500 euros, citing lack of financial sustainability without raising contributions or the retirement age. The reform also aims to address the 12% pension penalty for those retiring at age 63. Detailed legislation is currently being prepared for submission to the House of Representatives.