Cyprus pension reform negotiations continue as bill faces technical delays

Labour Minister Marinos Mousiouttas is leading discussions with the Labour Advisory Board regarding a major pension reform bill aimed at improving retirement income, transparency, and the Social Insurance Fund. The reform targets 123,000 pensioners with projected increases ranging from 5% to 55%, ensuring over 50,000 individuals receive an extra €100 monthly within five years, and 9,500 receive over €200 monthly. The government intends to implement the measures by January 1, 2027.

While the government originally targeted late September for submission to the House of Representatives, technical legal vetting has caused potential delays. Minister Mousiouttas stated that if the legal review is completed, the bill will reach the Cabinet this Wednesday; otherwise, it will be delayed by one week, making October 8 the first available date for parliamentary submission. The government remains open to further adjustments to the bill even after it is tabled.

Simultaneously, discussions on the second pillar of the reform are scheduled to begin in a technical committee on October 6, meeting weekly on Tuesdays. Meanwhile, labor unions such as PEO and political actors like AKEL have expressed reservations regarding the adequacy of the proposed measures for low-income pensioners and are seeking further dialogue to address specific concerns before the legislation is finalized.