Nicosia, Cyprus. Pension reforms are progressing as planned, with pensioners expected to receive higher payments from February 1, 2027, Labour Minister Marinos Mousiouttas said on Friday.
The bill on the first pillar of the pension system, concerning the social insurance fund, is due to be presented to social partners soon before being submitted to parliament after the summer recess.
Legislative timetable
Mousiouttas said the Labour Advisory Body would meet in early August to finalise remaining details before the bill is circulated to social partners.
Following feedback from social partners and cabinet approval, the legislation is expected to be submitted to parliament when MPs return in September. Implementation is planned for early 2027.
“The people will feel the increase in pensions” on February 1, 2027, Mousiouttas said.
Fund sustainability
The minister said the August meeting could not take place earlier because Finance Minister Makis Keravnos was unavailable.
He said increases in one benefit would require reductions in others, as priorities must be set. Mousiouttas added that, with no planned increase to the retirement age or contributions, the social insurance fund’s revenue would remain stable.
The actuarial study supporting the reform projects the fund’s sustainability for around 50 years, he said.
Consultation
Mousiouttas said the government was open to proposals from social partners and political parties before the bill is debated in parliament.
“Any change or suggestion is welcome,” he said, adding that discussions would extend beyond social partners.
