Talks on pension reform in Cyprus are continuing at pace, with the well-known 12% pension penalty remaining a central issue.
Current indications from government and labour-policy discussions suggest that full abolition is not on the table at this stage. However, a limited reduction of the rate is still being examined.
That option is being considered alongside broader pension increases, with the goal of delivering a more favorable final outcome for retirees than under the current framework.
At the same time, the government is advancing the first reform pillar linked to Social Insurance while preparing the second pillar concerning Provident Funds. Upcoming meetings are expected to refine implementation timelines and core technical parameters.
