Cyprus government initiates pension reform discussions

The Labor Advisory Body, chaired by Minister of Labor and Social Insurance Marinos Mousiouttas, met on September 28 to continue discussions regarding the proposed pension reform bill. The initiative aims to improve pension outcomes with a focus on low-income individuals, ensuring justice, transparency, and a robust Social Insurance Fund.

According to the Minister, approximately 123,000 pensioners are expected to receive increases ranging from 5% to 55%. Specifically, over 50,000 retirees will see monthly increases exceeding €100 over a five-year period, while more than 9,500 will receive an increase of over €200 per month. The government plans to submit the legislation to the House of Representatives by September 30, with an intended implementation date of January 1, 2027.

While the bill is slated for submission soon, Minister Mousiouttas noted that the dialogue may continue even after the submission, allowing for potential amendments. Additionally, a Technical Committee is scheduled to begin discussions on the second pillar of the reform on October 6, with weekly meetings every Tuesday. These discussions will eventually be integrated into the Labor Advisory Body to reach a framework agreement.