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Cyprus pension reform: Government aims for September parliamentary submission
Cyprus is undergoing intensive consultations regarding a proposed pension reform, with the government aiming to submit the bill to Parliament by September. The Labour Advisory Body and Technical Committee have held marathon sessions to discuss the three pillars of the reform, including the 'zero pillar' and allowances for low-income pensioners.
Stakeholders have expressed significant concerns. Employers are wary of potential future increases in social insurance contributions, while trade unions have raised alarms that proposed income levels for low-income pensioners may remain below the poverty line. Additionally, the role of provident funds remains a contentious issue; unions demand a holistic reform including these funds, whereas the Ministry of Labour maintains that the reform can proceed without a framework agreement on this specific matter.
The Ministry of Labour and Social Insurance, led by Minister Marinos Moussioutas, aims for the reform to be implemented by January 1, 2027. To expedite the process, meetings are scheduled to take place twice a week to address outstanding issues such as the 12% proportional reduction.
Entities
Cyprus · Labour Advisory Body · Marinos Mosiouttas · Marinos Moussioutas · Ministry of Labour and Social Insurance · Social Insurance Fund
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 5 SOURCES] Minister of Labour and Social Insurance Marinos Mosiouttas stated that discussions regarding pension reform have entered into depth. dialogos.com.cy · www.sigmalive.com · 24h.com.cy · www.politis.com.cy
- [● 2 SOURCES] The Ministry stated that no pensioner will receive less in total than they currently receive. dialogos.com.cy · www.sigmalive.com
- [○ 1 SOURCE] The reform aims to ensure the long-term sustainability of the Social Insurance Fund. www.politis.com.cy
- [● 2 SOURCES] Employers expressed concern regarding loopholes that could allow for future increases in social security contributions. dialogos.com.cy · www.sigmalive.com
- [● 2 SOURCES] The Ministry aims to implement the pension reform by January 1, 2027. dialogos.com.cy · www.sigmalive.com
- [○ 1 SOURCE] The government intends to proceed with the reform even without a framework agreement regarding provident funds. www.politis.com.cy
- [● 2 SOURCES] Trade unions expressed concern that proposed income levels for low-income pensioners remain below the poverty line. dialogos.com.cy · www.sigmalive.com
- [○ 1 SOURCE] Employers reject the mandatory application of provident funds, calling it a ‘red line’. www.politis.com.cy