Cyprus government aims to implement pension reform by January 1, 2027

Cypriot Minister of Labor and Social Insurance, Marinos Mousiouttas, announced that the government remains committed to implementing a comprehensive pension reform by January 1, 2027. The legislative bill is currently undergoing technical legal review by the Attorney General’s office. Once this process concludes, the bill will be submitted to the Council of Ministers and subsequently forwarded to the House of Representatives for final approval.

Minister Mousiouttas emphasized that social dialogue with stakeholders and political parties will remain open, potentially continuing even after the bill reaches the House. The primary goal of the reform is to ensure the long-term sustainability of the Social Insurance Fund (SIF) and public finances. Additionally, the ministry is intensifying discussions regarding the second pillar of the system, which focuses on Provident Funds as a supplementary retirement income source.

The reform aims to provide retirees with improved living standards through increased pensions and associated benefits, marking a significant update to the system after 50 years of existing structures. The next major step involves a meeting of the Labor Advisory Body, where further consultations will take place before the formal introduction of the legislation to the Cabinet.