Cyprus government proceeds with pension reform amidst union concerns

The Cypriot government is pushing forward with a major pension reform, aiming to implement the new system by January 1, 2027. Minister of Labour and Social Insurance, Marinos Mousiouttas, reaffirmed this timeline following a three-hour meeting of the Labour Advisory Council (ESB) on October 8, 2026. The government intends to submit the draft legislation to the Council of Ministers soon, pending completion of the legal review, which has faced recent delays.

While Minister Mousiouttas expressed optimism regarding the progress and the constructive nature of the discussions, trade union representatives from PEO and SEK have voiced significant concerns. They argue that the current provisions could negatively impact both present and future retirees if amendments are not made. The government has committed to reviewing written and oral proposals from social partners.

Dialogue is set to continue with twice-weekly meetings of the Labour Advisory Council throughout October, excluding October 19. Furthermore, a technical committee is scheduled to discuss provident fund frameworks on October 20 and 27. The Minister stated that even after the bill is submitted to Parliament, there remains potential for further deliberation and adjustments, provided that consensus is reached through the established advisory channels.