Basic pensions are set to rise by almost 4% from 2024, Minister of Labour Yiannis Panayiotou said.
In a speech before the 24th Session of the Council of Elders, Panayiotou said that the government is expected to issue a relevant decree for the pension increase next week, accompanied by official announcements.
Additionally, Panayiotou stated that the government aims for a pension reform in 2025, using social dialogue, data, and internationally accepted best practices to strengthen Cyprus’ pension system, following recommendations from the International Labour Organisation and the country’s Economic and Competitiveness Council.
He added that the government has expedited the process required for individuals to start receiving their statutory pensions within a month of turning 65. This will also apply to those retiring before reaching the age of 65 by the end of the year.
Regarding the 12% reduction for early retirement, Panayiotou mentioned that the Ministry has conducted a feasibility study to promote differentiation in this aspect without compromising the sustainability of the Social Security Fund or increasing workers’ contributions. A proposal has been formulated and is currently under discussion with social partners, he said.
In terms of establishing widower pensions for men, the Minister noted that directives have been given to determine the cost to the Social Security Fund. This will enable men who became widowers before 2018 to access these benefits.