Cyprus Minister announces pension reform to increase retiree payouts

Cyprus Minister of Labour and Social Insurance, Marinos Mosiouttas, has addressed upcoming pension reforms, stating that the new legislation aims to increase pensions for all retirees. He clarified that the reform will not increase the retirement age or the required contribution rates. The changes are expected to be implemented starting in January 2027.

Moshiouttas highlighted the demographic shifts facing the country, noting that while one in six residents was over 65 in 2022, this figure is projected to rise to nearly one in four by 2050 and three in ten by 2070. He rejected the term ‘demographic bomb,’ arguing instead that increased longevity is a civilizational achievement that requires better preparation regarding income, care, and dignity for the elderly.

The pension reform bill was prepared with assistance from the International Labour Organization and focuses on the first pillar of the pension system, the Social Insurance Fund.