Cyprus advances pension reform targeting mothers, disabled and new graduates

The Cyprus government is moving toward finalising a pension reform bill, with a decisive meeting scheduled for 5 August between Labour Minister Marinos Mousouttas and Finance Minister Makis Keravnos. The draft aims to be presented to parliament around 20 September and to take effect on 1 January 2027.

Key provisions include subsidised insurance units for vulnerable groups – mothers who stay at home caring for children, persons with disabilities (AmEA), informal caregivers of seriously ill relatives, and recent university graduates, whose contributions will be covered for up to one year to avoid gaps in employment. The reform also seeks to equalise widower pensions for men who lost spouses before 2018 and to strengthen the second pillar pension funds through ongoing dialogue with social partners. After the August meeting, the plan foresees further consultations with the President of the Republic and political parties before the bill is submitted.