Consultations on Cyprus pension reform continue

The Labour Advisory Council in Cyprus is currently engaged in discussions regarding a comprehensive pension reform package led by Minister of Labour and Social Security, Marinos Mousiouttas. The government aims to submit the first-pillar legislative bill to Parliament by June 2026, with a target implementation date in 2027. Key components of the reform include reevaluating the 12% actuarial reduction for early retirement, updating investment policies, and addressing the repayment of state debts to social insurance. The Minister stated that alternative options for the 12% reduction are currently under review. While the government maintains a firm schedule, some stakeholders have expressed concern over perceived gaps in the plan. The second-pillar reform, focusing on provident funds, is scheduled to follow approximately three years after the initial phase due to technical constraints. Additionally, authorities are developing a new framework to simplify the repayment of overdue social insurance contributions over a four-year period. Furthermore, legislation regarding minimum wage adequacy and collective agreement coverage is also in progress.