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Cyprus to Increase Minimum Wage and Reform Pension System in 2026

Published January 5, 2026, 07:13
Cyprus to Increase Minimum Wage and Reform Pension System in 2026

The Minister of Labour, Marinos Mousiouttas, announced significant changes to the pension system and an increase in the minimum wage for 2026. The pension reform, a government priority, will focus on strengthening low pensions and correcting distortions in the existing system. Discussions on the reform have been ongoing since 2022, in collaboration with social partners and experts from the European Union. The aim is to submit a comprehensive bill to Parliament in 2026, with implementation from January 1, 2027. The Minister emphasized that the last major reform took place in 1981 and that the new conditions of life require a more sustainable and fair approach. The reform will also consider linking pensions to provident funds.