Labour minister presents pension reform bill to social partners

On August 19, 2026, Labour Minister Marinos Moushouttas formally presented the long-awaited pension reform bill to social partners during a meeting of the Labour Advisory Body. The government aims to implement the reform by January 1, 2027, with the objective of providing pension increases to approximately 123,000 retirees, potentially visible in payments from February 1, 2027. Minister Moushouttas clarified that the reform will not include any increases to the retirement age or contribution rates.

Key discussion points for the upcoming negotiations include the level of increases for minimum pensions, the formula to reduce the 12% pension penalty, the potential inclusion of survivor pensions for men, and the status of Provident Fund contributions. While the minister plans to submit the bill to the House of Representatives by September 20, 2026, he remains open to feedback from unions and employer organizations.

A follow-up meeting is scheduled for August 28, where stakeholders are expected to provide formal positions and suggestions. The minister acknowledged that the partners were given the document shortly before the session, necessitating additional time for thorough review, but emphasized that the government is committed to proceeding even if full consensus is not reached.