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Cyprus to Implement Pension Reform in 2026

Published December 29, 2025, 13:18
Cyprus to Implement Pension Reform in 2026

The Cypriot government is planning a pension reform for 2026, aiming to ensure the sustainability of the Social Insurance Fund and improve pensions. Minister of Labor, Marinos Mousiouttas, stated that the last reform took place in 1981 and a review is necessary due to the aging population. The reform will be carried out in collaboration with social partners and experts to ensure its approval by Parliament. Furthermore, the Minister addressed the issue of low-income pensioners, which is linked to benefits from the Deputy Ministry of Social Welfare. He clarified that no consultations have yet taken place regarding changes, but the issue is on the government's future plans. Regarding the minimum wage, Mr. Mousiouttas acknowledged the reactions from employer organizations and trade unions, emphasizing that the decision was based on the recommendations of the Minimum Wage Adjustment Committee. The minimum wage increase amounts to 8.8%, a higher percentage than the previous adjustment. The Minister of Labor stressed the importance of finding a balance between improving wages and maintaining the viability of businesses, while clarifying that the change in the minimum wage will be implemented in January 2026. The overall goal of the government's policy is to improve the standard of living, especially for the lower income brackets.

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