Pensioners on low incomes will see rises of up to 50 per cent once Cyprus’s pension reform is fully in place, according to examples drawn up by the Ministry of Labour and Social Insurance, which said no pension would be cut.
The ministry’s indicative examples are based on 2024 values and divide pensioners into four income groups. Each example takes account of both years of contributions and credited years, and all of them assume seven credited years.
In the low-income group, where rises reach up to 50 per cent, a pension of 411 euros with 30 years of contributions would go up to 577 euros. One of 436 euros with 35 years would rise to 655 euros, and one of 508 euros with 42 years to 764 euros.
For low to middle incomes, rises reach up to 34 per cent. A pension of 497 euros with 25 years of contributions would go up to 667 euros. One of 642 euros with 35 years would rise to 827 euros, and one of 762 euros with 42 years to 976 euros.
Middle incomes would see rises of up to 11 per cent. A pension of 921 euros with 25 years of contributions would go up to 1,019 euros. One of 1,258 euros with 35 years would rise to 1,341 euros, and one of 1,524 euros with 42 years to 1,611 euros.
For higher incomes the increase would be negligible, the ministry said, though no pension would be reduced. A pension of 1,223 euros with 25 years of contributions would rise to 1,271 euros. One of 1,706 euros with 35 years would rise to 1,713 euros, and one of 2,032 euros with 42 years to 2,034 euros.
Full implementation means three years, in line with the ministry’s latest decisions. After the Labour Advisory Board’s most recent session, the labour minister announced three changes to the pension reform bill. Pension increases will be phased in over three years instead of five. The transitional period will be extended from five years to 15. Conditions for widows’ and disability pensions will be improved.
The reform is due to take effect on 1 January 2027. The board now meets twice a week so that the process can be completed as soon as possible.
