Cyprus pension reform bill expected in Parliament by late September

Cyprus is advancing a major pension reform, with the Labor Minister, Marinos Mosiouittas, announcing that the bill is expected to be submitted to the House of Representatives by the end of September. Parliamentary debate is scheduled to begin on October 13.

The reform involves distinct legislative tracks for Social Insurance and Provident Funds. The Minister estimated the total additional cost to the state and the Social Insurance Fund at approximately 820 million euros over a six-year period, with 486 million euros allocated to the state and 334 million euros to the Social Insurance Fund.

During discussions with social partners, the Minister urged stakeholders to expedite their sessions to resolve remaining questions. While the first phase focuses on the 'zero' and 'first' pillars, work on the second pillar is also expected to progress soon.

Separately, AKEL lawmaker and Chairman of the Labor Committee, George Koukumas, has called for the expansion of Provident Funds to cover all workers in Cyprus. He noted that currently, only 27% of employees are covered. Koukumas highlighted that pensions in Cyprus currently replace only about 40% of pre-retirement income, compared to a European average of approximately 70%.