Cyprus government announces pension reform roadmap for 2027

On Tuesday, Cyprus Minister of Labour and Social Insurance Marinos Moushiouttas presented the government’s 2026 priorities, focusing on a major pension reform. The reform aims to increase the basic pension while ensuring the long-term financial sustainability of the Social Insurance Fund. Officials confirmed that the final minimum pension amount will remain below €1,088, based on actuarial assessments. The government intends to provide the maximum possible increase for the lowest pensions without destabilizing the national economy. The official implementation timeline requires draft legislation to be submitted to Parliament in June 2026, followed by discussions in September 2026. The new system is scheduled for full implementation starting January 1, 2027. While there is consensus among social partners regarding the first pillar of the reform, significant differences remain concerning the second pillar. Ministry officials expressed optimism that these disagreements can be resolved through ongoing dialogue.