Cyprus government announces upcoming pension reform plans

Minister of Labour and Social Insurance, Marinos Mousiouttas, has presented a framework for a pension reform aimed at implementation by January 1, 2027. The proposal includes pension adjustments ranging from 5% to 55%, depending on individual variables. A key change involves the creation of a new category of contributors, specifically targeting individuals currently receiving social pensions who also derive income from dividends, rents, or other sources. These individuals will be required to contribute to the Social Insurance Fund, which the Minister states will ultimately increase their future pension benefits. The government plans to identify these contributors through collaboration with agencies such as the Tax Department, while strictly adhering to data protection laws. The Minister confirmed that the retirement age and current contribution rates will remain unchanged. A draft of the reform legislation will be submitted to social partners within the next 15 days for public consultation. Parliamentary debate is expected to commence following the summer recess.