Cyprus is pushing ahead with pension increases and a minimum wage rise following three new credit rating upgrades, as President Nikos Christodoulides’ government enters the planning phase for the second half of its five-year term.
Pension reform will bring increases to pensions and is expected to begin implementation with the arrival of the new year, according to government circles. The administration will then open discussions on a new minimum wage increase.
The strong economic performance allows the government to move more aggressively on domestic governance, government circles said.
Strong economic indicators deliver significant benefits, including lower borrowing costs for the state, enabling more development projects, easier and more affordable financing for households and businesses, and enhanced international confidence leading to productive investment, new well-paid jobs and higher incomes.
The ratings from internationally recognised agencies represent recognition of the government’s work, government circles said.
The administration wants to pass this recognition of positive results on to citizens by strengthening policies that improve their daily lives and increase their purchasing power. Wage and pension increases are two steps in this direction.
Government sources said the administration will not back down on education reform, one of the open fronts it intends to pursue to completion.
Reforms form the core of Christodoulides’ governance programme, with a series of interventions either completed or underway.
These include student assessment reform, integration of hot meal programmes in special schools, expansion of preschool education from age four, curriculum revision and modernisation, teacher and educational work evaluation, all-day school upgrades and financial literacy programmes.
Health reforms include legislation for university hospitals to operate as tertiary reference centres, a national centre for clinical documentation and quality improvement, and fast-track clinics in accident and emergency departments at hospitals in Nicosia, Paphos, Larnaca and Famagusta.
The government has established a migration deputy ministry, upgraded migration permit policies, extended maternity leave from 18 to 22 weeks, expanded parental leave, created an environmental inspections service and introduced a digital citizen initiative and fast-track development licensing.
Economic and governance reforms include minimum wage adjustments, a national sanctions implementation unit, stock exchange decommutisation legislation, a strategy for modernising the primary sector, tax reform legislation and new teleworking legislation.
Administrative reforms include a government coordination and support secretariat, an internal audit unit in the presidency, annual governance planning, annual action plans for ministries, a framework for hiring advisers, an advisory council, a code of ethics for government members and public service reform.
Justice and social reforms include judicial reform, modernisation of family law, updated anti-poaching legislation, strengthening of juvenile probation officers, modernisation of the community service scheme, pension reform and retirement age regulations for state employees, voting rights at 17, automatic electoral roll registration, modernisation of the legal service and audit service, establishment of a gender equality commissioner and modernisation of the assemblies and parades law.
Other reforms include a new framework for managing Turkish Cypriot properties, restructuring of forestry education, civil protection reform and wildfire legislation, and establishment of a national security council.