Cyprus pension reform faces delays and union opposition

Cyprus's proposed pension reform faces delays and opposition from major labor unions. During a session of the Labour Advisory Body (ESS), the PEO and SEK unions expressed serious concerns that the bill could negatively impact current contributors and future retirees. PEO General Secretary Sotiroula Charalampous stated that the union's primary focuses are addressing the issue of low-income pensioners and ensuring the social insurance system does not become more difficult for workers to navigate.

The reform process has missed several deadlines. Originally expected in June and later moved to September, the bill is still undergoing legal review by the Legal Service and has not yet reached the Council of Ministers. Minister of Labour Marinos Mousiotis confirmed that the government aims to pass the legislation by the end of 2026 for implementation in 2027, though the timeline remains uncertain due to the ongoing legal checks and parliamentary schedules.

While unions have submitted their recommendations, employer organizations such as OEB and KEBE are expected to finalize their positions early next week. The Minister has committed to examining all proposals individually as the dialogue continues within the ESS.