The Cypriot government is advancing plans for a significant pension reform targeting a January 1, 2027, implementation date. Minister of Labor and Social Insurance, Marinos Mousiouttas, announced that a meeting with the Minister of Finance, Makis Keravnos, is scheduled for August 5 to finalize the core figures of the legislative proposal. This process involves refining key elements such as pension increases, the reduction of the 12% actuarial penalty for those retiring at 63, and the repayment of state debts to the Social Insurance Fund.

Following approval from the President, the draft law will be submitted to social partners and parliamentary committees, with a formal submission to the House of Representatives expected around September 20. The reform focuses on the first pillar of social security and includes new social measures, such as subsidized insurance credits for mothers, individuals with disabilities, informal caregivers, and young graduates. While the government admits some retirees will remain below the poverty line even after the changes, the proposal aims to strengthen the sustainability of the Social Insurance Fund and improve overall support for citizens' incomes.