Public sector retirement gratuities to reach 113.3 million euros in 2027

In 2027, 977 public sector employees in Cyprus are scheduled to retire, collectively receiving 113.3 million euros in tax-free lump-sum gratuities. Each departing individual is expected to receive an average of 116,000 euros upon leaving the civil service, whether through statutory retirement or early exit programs.

This disbursement represents a significant increase compared to recent years. In 2026, 926 employees are projected to retire with a total of 102.3 million euros, while 936 individuals retired in 2025, receiving 101.5 million euros. Over the past decade, the state has paid out approximately 939.1 million euros in such gratuities, with cumulative costs nearing the 1 billion euro mark. Expenditure is expected to rise further in the coming years as part of the state budget obligations.

The trend reflects the ongoing turnover of the public workforce, with current data indicating that both the number of retirees and the average size of individual payouts are experiencing steady growth. These figures highlight the substantial fiscal impact of state pension commitments as identified in the latest budget reports.