Cyprus’s pension reform bill is in the final stage of legal review, Labour Minister Marinos Mousiouttas said at the 17th Pension Forum on 12 November. He outlined proposed increases of between 5% and 60%, without raising contribution rates.
The changes remain a legislative proposal. Once the Legal Service completes its review, the bill will go to the Cabinet and the House of Representatives. Public consultation took place in September, followed by discussions with the social partners.
The increase would be phased in over three years: 30% of the total improvement in the first year, another 30% in the second and the remaining 40% in the third. Pensions of up to €600 would receive a minimum monthly increase of €30.
As an illustrative example, the minister described a low-paid worker with 35 years of contributions. A pension of approximately €640 under the existing system would rise to around €830 under the proposal. For 15 years, pensions would be calculated under both the old and new systems to ensure the more favourable amount.
According to the estimates he presented, around 123,000 existing pensioners would benefit. More than 50,000 are expected to receive over €100 extra per month, while more than 10,000 would receive increases exceeding €200.
