President Christodoulides meets OEB to discuss economic reforms and labor market

On August 31, 2026, President of the Republic Nikos Christodoulides met with the Executive Committee of the Cyprus Employers and Industrialists Federation (OEB) at the Presidential Palace. The meeting focused on the government's ongoing modernization reforms, specifically tax and pension system updates, with the goal of increasing disposable income and ensuring the long-term sustainability of the Social Insurance Fund. President Christodoulides highlighted that the national economy is expected to grow by 3.5% in 2026, supported by record-high employment levels and the lowest unemployment rates since 2008.

Representatives from the OEB, led by President Giorgos Pantelides, described the meeting as constructive. They formally presented concerns regarding pension adequacy, labor costs, administrative bureaucracy, and significant labor shortages. A specific point of discussion was the employer contribution to the Redundancy Fund, which currently holds 1.5 billion euros, with the OEB proposing a reduction in these contributions. While the government and businesses expressed a desire for continued cooperation, the issue of mandatory pension funds in the private sector remains a point of friction with trade unions, which demand universal, mandatory participation to ensure retirement security.

The government committed to ongoing dialogue and future interventions aimed at further supporting families and the economy. Both parties agreed to maintain an open channel of communication to address the labor market needs and the broader economic challenges facing the private sector.