Cyprus prepares pension reform bill for social partners

The Cypriot government is finalizing a comprehensive pension reform bill intended to provide significant increases in pensions, ranging from 5% to 55%, while ensuring the sustainability of public finances. President Nikos Christodoulides held intensive consultations with Finance Minister Makis Keravnos and Minister of Labor and Social Insurance Marinos Mousiouttas on August 7, 2026, to address the economic implications of the proposal. Official statements indicate that the projected cost of the reform involves tens of millions of euros, with the state expected to make a substantial fiscal contribution to support the planned increases of €250-€300 in additional income for pensioners.

Following the recent high-level meetings, the administration has decided to submit the drafted bill to social partners in the coming days. The legislative framework is scheduled for review and formal debate within the Labor Advisory Body. Two sessions of this body have already been set for August 19 and August 28, 2026. These steps represent a significant progression in the government's effort to implement the reform before the end of the week, aiming to balance welfare improvements with fiscal responsibility.