Pension overhaul heads to parliament, set to start January 2027
Labour Minister Marinos Mousiouttas says the reform bill will reach lawmakers within days, aiming to raise the lowest pensions and stop the state borrowing from the Social Insurance Fund.
Cyprus is preparing the first deep revision of its social insurance system in roughly fifty years, with the government aiming to switch on the changes from January 1, 2027. Labour Minister Marinos Mousiouttas said the draft law should be handed to parliament within days, as reported by Cyprus Mail.
Under the plan, payouts would rise — with the smallest pensions getting the most attention — and years devoted to raising children, looking after relatives, studying or living with a disability would count when entitlements are worked out. The state would also stop dipping into the Social Insurance Fund and begin paying back what it owes, while the fund's roughly €12 billion in reserves would be invested under a new supervisory framework.
Mousiouttas added that social dialogue is under way to bolster the second pension pillar, meaning workplace schemes and provident funds, so future retirees have extra income on top of the state pension. He made the remarks at a gala dinner held by Dafni Troullon Sports Club.
What it means for residents
The headline change is that the calculation of your future pension may look different, and some people could qualify for more. But nothing is settled until parliament votes, so treat the 2027 date as a target rather than a guarantee.
- Check your contribution record. Periods spent caring for family members or studying may soon count — gather any paperwork that proves them.
- Watch the bill, not the announcement. The final rules on amounts and repayment of the fund's debt will be set in the text MPs debate.
- Ask about workplace schemes. If your employer offers a provident fund or occupational plan, find out how it fits with the state pension.
This text is written from the source article and is not a translation of it.
