Cyprus government announces changes to proposed pension reform

Following a meeting of the Labour Advisory Board on Monday, October 12, 2026, the Cypriot Minister of Labour, Marinos Mousiouttas, announced three major adjustments to the upcoming pension reform bill. These changes include the disbursement of pension increases over a three-year period instead of five, the extension of the transition period from five to fifteen years, and the improvement of conditions for widowhood and disability pensions. Regarding the pension hikes, 30% will be paid in the first year, 30% in the second, and 40% in the third.

These modifications aim to address concerns raised by social partners, including the SEK union and the CCCI (KEVE), who had previously requested clearer data on the impact of the reforms and specific pension comparisons between the existing and proposed systems. The extension of the transition period is intended to resolve issues regarding potential contribution increases. The government remains committed to its target of implementing the new system by January 1, 2027, provided that the bill is passed by the House of Representatives within 2026.

While legal vetting by the Law Office has caused a minor delay, the bill is expected to be submitted to the Council of Ministers in the second half of October. The parliamentary Labour Committee is slated to debate the legislation before the end-of-year holiday recess.