Cyprus government prepares major pension reform for 2027

The Cypriot Ministry of Labor is preparing a package of legislative bills for pension reform, targeting implementation by January 1, 2027. Minister of Labor Marinos Mousiouttas stated the reform aims to address systemic weaknesses present since the last major update in 1980. Key priorities include defining the new minimum pension amount, adjusting the 12% penalty for retirement at age 63, and establishing an investment policy for the Social Insurance Fund. The government also plans to consolidate various allowances and the social pension into a single payment structure. Additionally, officials must decide whether to continue wage subsidies for employees in the hotel industry for May and June. The Labor Advisory Board is expected to convene this week to review progress on these measures. While the minimum pension will be increased, the minister clarified it will not reach the current national minimum wage of 1,088 euros.