Cyprus government advances pension reform to boost low-income earners

The Cypriot government, in collaboration with social partners, is advancing a significant pension reform aimed at supporting low-income pensioners with long working histories. Minister of Labour Marinos Mousiouttas confirmed that discussions are occurring twice weekly to ensure the legislative bill is ready for parliamentary submission. The reform focuses on rewarding years of contribution, including subsidized periods such as military service and studies.

Under the new framework, pension increases are projected to range from 5% to 60%, depending on years of contributions and income levels. For instance, an individual with 49 total years of work could see their pension rise from 508 to 764 euros, while another with 37 years could see an increase from 411 to 655 euros. Citizens can already preview their estimated adjustments through the Gov.cy portal.

The implementation of these increases will be phased over a five-year period. According to the Ministry, the payout schedule involves a 30% increase in the first year, 30% in the second, 10% in both the third and fourth years, and the final 20% in the fifth year. Ongoing consultations are currently fine-tuning the final provisions of the reform.