Cyprus will submit pension reform legislation to parliament in June, months after missing a December deadline, with the overhaul set to take effect at the start of 2027.
Labour Minister Marinos Moushiouttas told the parliamentary Finance Committee on Monday that submitting the bills last December proved impossible, but the government now expects to table them in the coming June.
The ministry has held 12 meetings with social partners to explain the actuarial study underpinning the reforms. At the final session of the labour advisory body, senior leadership of organisations were asked to submit their positions within a reasonable timeframe.
The bills will go to the Law Office for review, require Cabinet approval, and then be submitted to parliament, Moushiouttas said.
Pensions to rise across the board
The pension system overhaul will increase pensions and related benefits for everyone, though Moushiouttas said he does not know the size of the increases.
Responding to questions, the minister said the state’s debt to the Social Insurance Fund and holiday funds—covering employee rights protection in cases of employer insolvency and redundancy—totals €12.8 billion. Of this, €11.3 billion is owed to the SIF, with the remainder owed to other funds.
The reform legislation will determine the fund’s investment policy, set out how the state debt will be repaid, and establish how the fund will be managed by a special body, Moushiouttas said.
Political parties will be briefed once the consultation process concludes. If the new legislation passes within 2026, it will take effect on 1 January 2027, the minister said.
Read more: