Cyprus government aims to pass pension reform by end of year

Cypriot Minister of Labor, Marinos Mousiouttas, expressed optimism regarding the passage of a comprehensive pension reform bill by the end of 2026, aiming for implementation starting January 1, 2027. He acknowledged that while the process is complex, it is a necessary modernization effort that has not been addressed in 46 years.

Following a meeting of the Labor Advisory Body this Thursday, written proposals from social partners are expected to be collected. Subsequently, the bill will be submitted to the Council of Ministers for approval and presented to the House of Representatives within the coming days. The government intends to make the system more equitable, focusing specifically on increasing lower pensions without requiring any increase in social security contributions.

Addressing public concerns, Minister Mousiouttas reassured that the reform poses no risk to existing pensions. Instead, the administration maintains that the restructuring will lead to higher pension payouts, ensuring the long-term sustainability and fairness of the current social security framework.