Agreement reached on social security arrears repayment plan

The Cypriot government and parliamentary committees have reached a compromise regarding the settlement of €245 million in overdue contributions to the Social Insurance Fund. Originally, the government proposed a repayment plan spanning 48 installments without writing off surcharges. Opposition parties including DIKO, ELAM, DIPA, and the Ecologists suggested increasing the number of installments to between 100 and 120. Labor Minister Marinos Mousiouttas cautioned that excessive installments could render the law unconstitutional and cause a 10-month technical delay in implementing the necessary software updates. The final agreement set the limit at 54 installments, while also allowing for the cancellation of surcharges. This model aligns with previous schemes used during the economic crisis and the COVID-19 pandemic. The legislation is scheduled to be presented to the Plenary Session on April 6. The Minister stated that this compromise avoids fiscal costs and ensures immediate implementation.