Cyprus labour minister announces changes to pension reform bill

Following a meeting of the Labour Advisory Board on Monday, October 12, 2026, Cyprus Labour Minister Marinos Mousiouttas announced three major amendments to the proposed pension reform bill. These changes include the disbursement of pension increases over three years instead of five, the extension of the transitional period to 15 years, and improved criteria for widow and disability pensions. Under the new payment schedule, 30 percent of the increase will be paid in the first year, 30 percent in the second, and 40 percent in the third.

Minister Mousiouttas confirmed that the government maintains its goal of implementing the new pension system by January 1, 2027, provided that the legislation is passed by the Parliament within 2026. While labor unions and employers, represented by bodies such as SEK and KEBE, have welcomed these adjustments as a step forward, they continue to press for further clarifications regarding the 12 percent actuarial reduction for early retirement at age 63, the taxation of dividends, and the methodology for pension calculations.

The bill is currently undergoing final legal vetting by the Law Office of the Republic. The Ministry plans to present the revised draft to the Council of Ministers in the second ten days of October before moving to the legislative process.