Cyprus accelerates pension reform process

The government of Cyprus is accelerating its pension reform efforts this August, with the draft bill expected to be finalized by the end of next week. Minister of Labour and Social Insurance Marinos Mousiouttas announced that he will meet with Finance Minister Makis Keravnos on August 5 to resolve critical financial parameters that impact the state budget. Following this meeting, the proposal will be presented to President Nikos Christodoulides for further review.

Once the draft is finalized, it will be shared with social partners, including trade unions and employers’ organizations, for consultation. Minister Mousiouttas also intends to meet with parliamentary parties, accompanied by the government’s actuary, to explain the details of the reform. The discussions address core issues such as the level of pension payouts, the 12% actuarial reduction, the expansion of provident funds, and the overall cost of the reforms.

The government aims to submit the legislation to the House of Representatives when parliament reconvenes in September after the summer recess. Officials hope that the first phase of these pension reforms will take effect on January 1, 2027, following a period of public consultation and legislative debate.