Cyprus government prepares to introduce pension reform bill to Parliament

Cypriot Minister of Labour and Social Insurance Marinos Mousiouttas announced that the government’s pension reform bill is scheduled to be submitted to the House of Representatives by the end of September 2026. Parliamentary discussions on the proposal are set to commence on October 13. The Minister emphasized that the reform, developed with support from the International Labour Organization, does not include increases to the retirement age or contribution rates. Instead, it aims to enhance the sustainability of the Social Insurance Fund and provide pension increases for all retirees, with priority given to those receiving lower benefits.

Key provisions of the bill include a guaranteed minimum monthly increase of €30 for retirees currently receiving up to €600, with over 50,000 pensioners expected to see increases exceeding €100 and approximately 10,000 receiving over €200. Additionally, the actuarial reduction for those who retired at age 63 is set to decrease from 12% to 7.5%. The reform is scheduled for implementation on January 1, 2027. While consultations with social partners are ongoing, the government remains open to adjustments, including a debated proposal regarding the treatment of dividend income which will soon be reviewed by the Council of Ministers.