Labour Minister to present pension reform bill to social partners

Labour Minister Marinos Moushouttas is scheduled to present the long-awaited pension reform bill to the Labour Advisory Body on August 19. The presentation marks the formal start of negotiations between the government and social partners, including unions and employer organizations. Although the draft legislation has faced multiple delays since June, the government maintains its non-negotiable goal of submitting the bill to the House of Representatives by September 20, aiming for full implementation by January 1, 2027.

The reform package, which covers approximately 123,000 pensioners, includes provisions for horizontal pension increases, with estimates of growth ranging from 2% to 60% over a five-year period depending on individual insurance histories. Key negotiation points include adjustments to the 12% pension penalty, the inclusion of widower’s pensions, and the potential mandatory status of Provident Fund contributions.

Social partners are expected to receive the document shortly before the meeting, meaning substantive feedback will likely be deferred to a follow-up session on August 28. Minister Moushouttas has emphasized that while the government is open to dialogue, the financial parameters of the reform remain specific. The ministry aims for the first payments under the new system to reach retirees by February 1, 2027.