Cyprus advances pension reform negotiations ahead of upcoming bill submission

The government of Cyprus is accelerating consultations with social partners to finalize a pension reform bill scheduled for submission to the House of Representatives by September 30, 2026. Minister of Labour and Social Insurance Marinos Mousiouttas confirmed that the reform aims to provide salary increases for approximately 123,000 pensioners, with over 50,000 expected to see monthly increases exceeding €100 and 8,000 receiving over €200 within five years. The government maintains a goal of implementing these changes by January 1, 2027.

Despite the push for reform, discussions remain intense regarding key points of contention, including the potential increase of the retirement age and the retention of the 12% penalty for early retirement at age 63. Organizations like the Cyprus Chamber of Commerce and Industry (KEVE) have demanded full actuarial documentation to ensure the long-term sustainability of the Social Insurance Fund without necessitating increased contributions. Meanwhile, the Minister noted that the budget for subsidizing vacations for low-income retirees remains fixed for 2026, benefiting 6,650 individuals due to fiscal constraints.