Cyprus government sets October 13 deadline for pension reform parliamentary debate

The Cypriot government is pushing forward with its pension reform package, with Labour Minister Marinos Mousiouttas confirming that the draft bill will be submitted to the House of Representatives by the end of September. The parliamentary debate on the proposed measures is scheduled to commence on October 13, following intensive consultations within the Labour Advisory Board.

Financial data presented by the Minister estimates the total additional cost of the reform at approximately €820 million over a six-year period (2027-2032). Of this sum, €486 million will be covered by the state budget, while €334 million constitutes an additional burden on the Social Insurance Fund. Mousiouttas clarified that the first phase of the reform covers the zero and first pillars, while a separate legislative framework will be drafted for provident funds. The government intends to move forward with the first pillar regardless of whether an agreement is reached on the second pillar.

Despite the government's push for completion, social partners, including the Cyprus Chamber of Commerce and Industry (KEBE) and trade unions (DEOK), have expressed reservations. They have raised significant questions regarding the long-term sustainability of the system and the accuracy of the proposed costing, calling for further clarification before the legislative process concludes.