Cyprus government advances pension reform plans for January 2027 implementation

Cyprus Labour Minister Marinos Mousiouttas announced that the government aims to submit its pension reform bill to the Council of Ministers and Parliament as soon as possible, targeting an implementation date of January 1, 2027. Following a productive meeting of the Labour Advisory Body, Mousiouttas noted that the revised bill is expected to be shared with social partners by October 16. Stakeholders have until October 20 to submit written positions, which will be analyzed on October 27 before further discussions on provident funds commence on October 29.

According to the Ministry of Labour, the reform is designed to increase pensions for low-income retirees by up to 50 percent, with no reductions planned for current pension levels. Illustrative examples for low-income groups show that a pension of 411 euros with 30 contribution years could rise to 577 euros, while middle-income earners may see increases of up to 11 percent. The Ministry emphasized that these figures, based on 2024 values, account for contribution and credited years. While the Chamber of Commerce and Industry (Keve) has already submitted its views, the Employers and Industrialists Federation (Oev) is expected to follow shortly. The Minister remains optimistic about the timeline, noting that the legislative text remains subject to potential amendments during the parliamentary process.