Labor Advisory Board discusses provident funds in Cyprus

On October 29, 2026, the Labor Advisory Board (ESS) held its first meeting to discuss the future of provident funds in Cyprus. Minister of Labor Marinos Mousiouttas chaired the session, which aimed to bridge the gap between employers and employees regarding the second pension pillar. The government confirmed that existing provident funds will not be altered, though a new advisory body will be established to oversee reform discussions.

Key stakeholders, including trade unions and employers' organizations, currently hold conflicting views. Trade unions advocate for the mandatory application of provident funds and demand that existing funds be excluded from the new regulatory framework. Conversely, employers support voluntary participation and oppose the exemption of current funds from proposed changes. Minister Mousiouttas noted that most written submissions have been received, with the Cyprus Employers and Industrialists Federation (OEB) expected to provide its final input by the upcoming Tuesday.

The ministry has scheduled a new cycle of discussions to address these disagreements, regardless of whether legislation is formally submitted to Parliament. Four sessions are set for November 2026, scheduled for the 9th, 16th, 23rd, and 30th of the month. The government plans to use these meetings to identify common ground and finalize its policy position.