Nicosia, Cyprus. A parliamentary study has highlighted pension differences of more than €2,000 a month across European Union member states, while Cyprus remains near the lower end of the range. The findings come as the government prepares wider pension reforms expected to take effect in January 2027.
Differences across national systems
The study was prepared by the research, studies and publications service of the Cyprus House of Representatives and overseen by Anthi Tofari, following a request from Akel MP Nikos Kettiros.
It examined how EU countries protect older people with low or almost non-existent pension entitlements. Pensioners in some member states may receive little more than €250 a month, while a person with a full insurance record in Luxembourg may be protected by more than €2,400.
The figures are not directly comparable because national systems use different rules on contributions, residence, household income and years of work. Some amounts are gross and others net, while some refer to pensions, supplements, social allowances or minimum-income thresholds.
Housing costs, taxation, healthcare and other benefits can also affect the practical value of pension payments.
Eligibility and minimum provisions
Higher pension amounts in Luxembourg and Belgium generally require a full working life. Germany and Lithuania do not have a single statutory minimum pension, while other countries provide guaranteed income only after assessing a pensioner’s total resources.
The study said the comparison should not be treated as a simple ranking of which countries provide the most generous pensions.
Cyprus pension levels
Since January 1, 2026, Cyprus’s minimum Social Insurance pension for a beneficiary without dependants has been €450.35 a month, following a 3.38 per cent increase in its basic component.
The full basic pension increased to €529.82, while the social pension for people who do not qualify for another pension was set at €429.15. The supplementary component of Social Insurance pensions was not increased in the latest adjustment.
Recent figures showed that 31.5 per cent of people in Cyprus aged over 64 were at risk of poverty or social exclusion, compared with an EU average of 19.2 per cent.
Planned reform
The government aims to introduce a broader pension reform from January 2027, with greater support expected for the lowest-paid pensioners.
The bill is expected to be submitted to parliament by September 20 after further consultations with trade unions and other social partners. The proposed changes are expected to simplify the system and address the operation of the basic pension, social pension and low-income pensioners’ allowance.
Trade unions have raised concerns about whether the proposals will provide sufficient increases for pensioners with the lowest incomes.
