Cyprus government announces pension system reform plans

Government Spokesperson Konstantinos Letymbiotis announced on Sunday that pension reform is the government's next major priority. Speaking in Paphos, Letymbiotis stated that the Ministry of Labour and Social Insurance, in collaboration with the Ministry of Finance, has developed a comprehensive framework for the reform. The initiative aims to address the modern needs of pensioners while ensuring the sustainability and resilience of the social security system. The government views this reform as a continuation of previous measures, including tax reforms, two increases to the Guaranteed Minimum Income, and the full restoration of the Cost of Living Allowance (COLA). Discussions with social partners have already commenced, with the government presenting its initial proposals. The feedback from these partners and political forces will be incorporated into the final plan. The ultimate goal is to maintain strong public finances, which the government describes as the foundation for increasing citizens' disposable income.