Cyprus pension reform bill to be submitted to parliament in late September

Minister of Labor Marinos Moutsiouras announced that the government's pension reform bill is scheduled for submission to the House of Representatives by the end of September 2026. Parliamentary discussions on the proposed legislation are set to begin on October 13. During a meeting of the Labor Advisory Body, Moutsiouras urged social partners to accelerate their deliberations to resolve pending questions regarding the article-by-article analysis of the reform.

The reform proposal is grounded in an actuarial study conducted by the International Labour Organization (ILO), aiming to ensure the long-term viability of the Social Insurance Fund and public finances. Moutsiouras stated that the government has been working on this foundation for two years. The plan requires the state to repay debts it has accumulated to the Fund over decades while managing annual payout obligations through international market borrowing.

The proposed measures include pension increases ranging from 2% to 60% and an upward adjustment of the low-income pensioner allowance ceiling from 790 to 910 euros. The Minister emphasized that these measures represent a balanced approach to economic and social welfare. Between now and mid-October, social partners are encouraged to review the proposal further to foster greater consensus before formal committee proceedings commence.