Cyprus Minister of Labor and Social Insurance, Marinos Mousiouttas, announced that the draft bill for the first pillar of pension reform is expected to be presented to social partners by mid-August. While the government aims to finalize changes by February 1, 2027, conflicting reports indicate potential delays. Official sources state the bill could be ready before the Assumption holiday, while other reports suggest a postponement to late August, as the Minister seeks prior approval from the Minister of Finance and the President of the Republic in early August.

The reform includes planned pension increases ranging from 5% to 55% based on specific criteria, although the Minister admitted that some retirees will likely remain below the poverty line even after the changes. Key discussions also cover the 12% actuarial reduction for those retiring at 63 and the overall sustainability of the Social Insurance Fund. If no agreement is reached on the second pillar concerning provident funds, the government intends to proceed solely with the first pillar reform.

The process remains dependent on internal government consultations. Once the President gives his final consent, the bill will be submitted to trade unions and employers for dialogue, despite the current tight schedule.