Forty-six years have passed since Cyprus last reformed its pension system. That alone makes reform long overdue. But it’s not just the passage of time that matters here, it’s how much the underlying picture has shifted. The country has changed, and the pressures with it.
According to Minister of Labour and Social Insurance Marinos Moushouttas, the groundwork began two years ago under his predecessor, when actuaries from the International Labour Organisation were brought in. They carried out the necessary studies and drew up their proposals based on Cyprus’s current realities.
In an interview with Sunday Phileleftheros, the minister said the outcome is that pensions will rise for every pensioner, some more generously than others, all based on set criteria. What matters, he said, is that everyone gets an increase.
On the minister’s account, every pensioner stands to gain from the reform. “It offers greater fairness, adequacy and security for future generations,” he said.
The government’s proposal is now before the social partners and the public. The government says it remains “open to suggestions.” There will inevitably be different views and approaches, but everyone involved has a duty to find common ground. It only takes recognising two obvious truths: first, that pension reform is plainly necessary, and second, that under these changes, everyone will end up with more money in their pocket, based on defined needs and criteria.
We believe there is already broad agreement on these core principles. That’s the ground the dialogue should now build on.
We hope that dialogue delivers consensus, and that once the reform takes effect on January 1, 2027 (the target date), every pensioner feels the difference in their pocket with the year’s first payment, whether that lands in late January or early February 2027.
It’s also worth noting that the government’s proposed changes would benefit, among others, mothers forced to stay home to care for young children, disabled people, informal carers, as well as new entrants to the labour market and students.
We hope this delivers a result. Let disagreement give way to a shared path, for the common good.
