Cyprus government prepares pension reform bill for submission

The government of Cyprus is advancing its pension reform, with Labour Minister Marinos Mousiouttas announcing that a revised bill will be submitted to the Council of Ministers and Parliament as soon as possible. The government maintains a target implementation date of January 1, 2027. During a Labour Advisory Board meeting held on October 15, stakeholders discussed critical issues including the 12% actuarial penalty for early retirement, pension provisions for widowers, and the low-income pensioner allowance. While the government aims to ensure no pensions are cut and has presented projections showing increases of up to 50% for lower-income groups, unions continue to press for adjustments to existing penalties and benefit thresholds.

Social partners are required to submit their formal positions in writing by October 20. Further discussions regarding Provident Funds are scheduled for the Labour Advisory Board on October 29. Minister Mousiouttas stated that while the current proposal is the government’s priority, further modifications remain possible during the parliamentary legislative process to balance the financial capacity of the pension fund and the state with social needs.