Cyprus government advances major pension reform plans

The Cypriot government is moving forward with a significant pension reform, aiming to improve pension adequacy and support low-income pensioners. On September 7, 2026, the Labour Advisory Board held a critical meeting attended by Labour Minister Marinos Mousiouttas and Finance Minister Makis Keravnos to discuss the financial parameters of the reform, which is expected to be submitted to the House of Representatives by the end of September.

Minister Mousiouttas stated that the reform focuses on the first pillar, specifically the Social Insurance Fund, and aims to increase all pensions while prioritizing the most vulnerable. Finance Minister Keravnos emphasized the necessity of balancing these improvements with long-term fiscal stability, warning that a transparent, independent investment mechanism for the fund’s reserves is required to ensure sustainability without raising contribution rates or retirement ages. The government aims to implement these measures by January 1, 2027, ensuring the system remains robust for future generations while integrating protective safeguards against future economic crises.