Debate over pension reform intensifies in Cyprus

As part of the ongoing national dialogue on pension reform, Cypriot labor unions are actively engaging with the Ministry of Labor to push for the expansion of the second pension pillar—Provident Funds—to the private sector. Major unions such as SEK and DEOK have already submitted their written proposals to the Ministry and the relevant Technical Committee, with PEO expected to submit its formal position by Monday. The unions express a consensus on the need to guarantee adequate pensions for all retirees through a mandatory universal application of this supplemental scheme.

Simultaneously, the ISOTITA trade union has raised significant objections to the revised draft bill dated October 12, 2026. In their October 21 assessment, they identified eight problematic areas, most notably the mandatory offsetting of basic pension increases against occupational pensions. According to ISOTITA, this mechanism could result in a monthly reduction of up to 234.58 euros for workers with extensive careers exceeding 106 supplementary pension points. The union also highlighted negative impacts on police officers and workers retiring at age 63, warning that the current proposal requires major revisions before it is submitted to the House of Representatives.