Social partners demand clarity on pension reform ahead of parliamentary submission

Labor unions and employer organizations in Cyprus are seeking specific data regarding the impact of the upcoming pension reform ahead of a Labor Advisory Body meeting scheduled for mid-October 2026. Social partners, including the SEK union and the CCCI (KEVE), have requested detailed calculations to compare current pension benefits with those under the proposed system for various age groups. They emphasize that critical questions remain regarding the taxation of dividends and the new methodology for calculating pensions.

Minister of Labor Marinos Mousiouttas has pledged to provide these technical clarifications during the upcoming meeting. Despite delays in legal review by the Law Office, the Ministry confirms that the bill will be submitted to the House of Representatives by the end of October. The government remains committed to implementing the reform by January 1, 2027, leaving the parliamentary Labor Committee approximately 45 days to review and approve the legislation before the Christmas recess.

Employer representatives have warned against rushing the process without reaching a broad consensus on key points. The Minister maintains that the revised draft reflects improved convergence among stakeholders compared to the initial version and expresses confidence in meeting the established legislative timeline.