Cyprus announces pension adjustments effective July 1, 2026

The Treasury of the Republic of Cyprus announced that pensions will be adjusted effective July 1, 2026, due to the granting of a cost-of-living allowance. Pensions paid by the Social Insurance Fund will see an increase of 1.46% in both their basic and supplementary components, while occupational pensions paid directly by the Treasury will rise by 0.02% in accordance with the 2025 automatic cost-of-living adjustment index.

For pensioners receiving payments from both the Social Insurance Fund and the Treasury, the calculation is more nuanced. While the Social Insurance portion increases by 1.46%, the occupational pension may see a reduction due to the impact of the increased supplementary Social Insurance component and adjustments to income tax. Despite these complex individual adjustments, the Treasury states that the net total of pension payments will see a positive overall effect starting in July 2026.

These adjustments follow standard procedures for cost-of-living indexation within the public sector and social insurance schemes. The measures are intended to maintain the purchasing power of pensioners, with the Treasury confirming the changes apply to state officials, employees, and widows or widowers receiving these specific benefits.