Pension reform talks advance as Cyprus targets 2027 implementation

Nicosia, Cyprus. Government spokesman Konstantinos Letymbiotis said pension reform discussions were “in full swing”, with implementation remaining on track for 2027.

He said the reform is intended to increase support for low-income pensioners while safeguarding the sustainability of the social insurance fund for future generations.

Consultations continue

Letymbiotis said discussions at the Labour Advisory Board continued on Thursday, focusing on substantive elements of the government’s proposal, including measures concerning low-income pensioners and actuarial adjustment.

Thursday also marked the start of a series of meetings between Labour Minister Marinos Mousiouttas and parliamentary parties, he added.

Support for low-income pensioners

According to Letymbiotis, more than four in ten pensioners, or 51,664 people, are expected to receive increases exceeding €100 per month once the reform is implemented.

He said particular emphasis would be placed on the lowest pensions. Pensioners currently receiving up to €600 would receive substantial support from the start of the reform’s implementation.

Broader reform plan

Letymbiotis said the pension reform would complement the government’s tax reform, which he said reduced the tax burden and increased net income for thousands of workers, families and citizens.

He said some pensioners were not at income levels allowing them to benefit to the same extent from tax breaks and the new model. The pension reform would provide increased pensions and targeted support to ensure assistance reached those in need more directly.

The spokesman described the reform as part of a broader plan to increase disposable income and ensure a fairer distribution of the benefits of Cyprus’ economic progress. He said it also aimed to address injustices and distortions created over decades and respond to modern realities of work and family life.