Cyprus government advances pension reform despite union concerns

The Cypriot government, led by Minister of Labour and Social Insurance Marinos Mousiouttas, is working to finalize a pension reform bill intended for implementation by January 1, 2027. Following a three-hour meeting of the Labour Advisory Council on October 8, 2026, the Minister expressed optimism regarding the progress of consultations, despite reports of ongoing technical delays in legislative drafting. Discussions are set to continue throughout October with meetings held every Monday and Thursday, except for October 19.

Major trade unions, including PEO and SEK, have expressed significant concerns, warning that the current provisions could negatively impact future retirees. The unions are demanding universal coverage through provident funds and have set clear conditions, including rejecting any increases in retirement ages or contribution rates beyond those already established by law. While the government remains committed to its timeline, the Minister has indicated that he will review the stakeholders' proposals and provide responses during the next scheduled meetings. The finalized framework for provident funds, currently under review by a technical committee, is expected to be presented to the Labour Advisory Council on October 20 and 27.