Cyprus government dismisses reports of potential pension cuts in reform bill

As the Cypriot government prepares to present its comprehensive pension reform bill to social partners, official sources have strongly denied ongoing media speculation regarding potential pension cuts. Minister of Labour Marinos Mousiouttas confirmed that while a reduction of approximately 5% for the highest pensions was briefly considered during the early drafting stages, the proposal was abandoned following widespread opposition. The Minister emphasized that the upcoming bill will instead provide incremental increases to all retirees, with a particular focus on boosting low-income pensions.

Despite the government's reassurances, concerns remain regarding the legislative timeline. Andreas Matsas, General Secretary of the trade union SEK, has described the target of submitting the bill to Parliament by September 20 as unrealistic, noting that the social partners have not yet received the draft legislation. While two meetings are scheduled for August 19 and 28, trade union representatives believe there will not be sufficient time for a meaningful, in-depth consultation before the end of the month. The government maintains that the legislative process remains on track for the first plenary session following the summer recess.