Three changes announced to pension reform bill after labour advisory meeting

Nicosia, Cyprus. Three changes to the pension reform bill were announced on Monday after a meeting of the labour advisory body. Labour Minister Marinos Mousiouttas described the meeting as “a step forward” and said the government aimed to introduce the system on January 1, 2027, provided parliament approved the legislation before the end of 2026.

Revised payments and transition

Mousiouttas said pension increases would be phased in over three years rather than five. Recipients would receive 30 per cent of the increase in the first year, another 30 per cent in the second and the remaining 40 per cent in the third.

The amendments would also lengthen the transitional period to 15 years from five and improve eligibility conditions for widow and disability pensions, he said.

According to the minister, the longer transition would offset the difficulties associated with paying the entire increase over three years instead of five. It would also enable improved benefits for widows and people with disabilities.

Further consultation and legislative timetable

Mousiouttas said the three changes had brought the parties closer to agreement than they had been a week earlier. He added that reviewing the social partners’ remaining proposals could help narrow their differences further.

The government still intended to submit the bill to the cabinet shortly and subsequently to parliament, he said. Consultation with the social partners could continue after its submission to parliament.

The minister attributed the delay in bringing the legislation before parliament to efforts to secure the greatest possible alignment among the social partners’ positions.

Investment policy discussions

On investment policy, which forms the second pillar of the reforms, Mousiouttas said there was no bill under discussion. Instead, the objective was to secure a “gentleman’s agreement” between the state and its partners.