Cyprus government prepares pension reform bill amid stakeholder scrutiny

The Cypriot government is advancing a new pension reform proposal aimed at restructuring benefits for low-income retirees. Minister of Labour Mousiouttas indicated that the plan seeks to increase basic pensions to approximately 834 euros over five years, including the Cost of Living Allowance (COLA), while simultaneously reducing the reliance on the 'small check' social allowance as pension amounts rise. The administration maintains that these adjustments will provide a more stable long-term financial outlook for beneficiaries.

Employer organizations and trade unions have begun a comprehensive legal and actuarial review of the proposed bill. A meeting of the Labour Advisory Body is scheduled for Friday, though substantive discussions are not expected until mid-to-late September. The government intends to submit the final legislative proposal to Parliament on September 24. Meanwhile, labor unions remain cautious, expressing concerns regarding the adequacy of the proposed increases given the current climate of rising living costs.