Cyprus government set to present pension reform bill

The Cypriot government, led by the Ministry of Labor, is preparing to submit a long-awaited pension reform bill to the Labor Advisory Board. Following several delays that pushed the original June deadline to late August, the ministry aims to deliver the draft to social partners ahead of their meeting on August 19, 2026. The government remains committed to submitting the final proposal to the Parliament by September 20, 2026, with the goal of implementing the reforms by January 1, 2027.

During the upcoming session, the Ministry of Labor will present a detailed explanatory note regarding the structural changes. Trade union representatives, including Andreas Matsas of SEK and Sotiroula Charalambous of PEO, have emphasized the need for a holistic approach that ensures sustainable pension increases, addresses the 12% actuarial reduction, and resolves issues regarding widow pensions. Formal feedback and stakeholder discussions are scheduled to commence at the next board meeting on August 28, 2026. The government intends to conclude the consultation process by the end of August to maintain the established legislative timeline.