Cyprus labor unions review government pension reform bill

On August 26, 2026, the Coordinating Body of Organizations and Associations of the Public Sector met at the PASYDY headquarters in Cyprus to evaluate a new pension reform bill submitted by the Ministry of Labor. The discussions continued on August 28, 2026, within the Labor Advisory Board, where social partners are currently presenting their preliminary positions and seeking clarifications on the government's proposal.

The review process focuses on several critical aspects, including the calculation formulas for basic and supplementary pensions, the sustainability of the Social Insurance Fund, and the impact of the 12% actuarial reduction penalty for early retirement. Unions are also addressing the status of workers mandated to retire before age 63, such as police officers, firefighters, military personnel, and primary school teachers, as well as contribution requirements for individuals employed after the age of 65.

While stakeholders acknowledge some positive elements in the proposed legislation, they have identified "gray zones" regarding pension adequacy and the functioning of provident funds. The consultation process remains ongoing, with labor representatives set to convey their concerns and proposed amendments to the Ministry of Labor in upcoming deliberations.