**Keve to Meet House Speaker Demetriou Over Pension Reform**
The Cyprus Chamber of Commerce and Industry (Keve) has scheduled a meeting with House Speaker Annita Demetriou on September 1, 2026. The primary focus of this meeting will be the reform of the pension system, with an emphasis on the proposals and positions articulated by the business community.
Keve's announcement highlights the significance of this dialogue as part of an ongoing structured engagement with political leaders regarding critical economic issues affecting both businesses and society at large. The meeting comes at a pivotal time as the government is preparing to present a legislative package aimed at overhauling the pension system for the first time since 1980. The proposed reforms are set to be implemented on January 1, 2027.
Labour Minister Marinos Mousiouttas has outlined key aspects of the planned pension reform, which includes increases for all pensioners, with a particular focus on supporting lower-income recipients. More than 51,000 of the 123,212 social insurance pensioners in Cyprus are expected to receive monthly increases exceeding €100, phased in over a five-year period.
For those currently receiving pensions of up to €600, an immediate minimum increase of €30 will be applied in the first month of implementation. For example, a full career worker currently earning a monthly pension of €504 could see total increases reach up to €250 per month as the reforms roll out.
In addition to these increases, the government plans to reduce the actuarial penalty for retirees at age 63 from 12 percent to 7.5 percent on the basic pension component. This adjustment aims to provide greater financial security for older workers transitioning into retirement.
The reform package also introduces social contribution credits designed to support various groups, including mothers taking career breaks, informal carers, persons with disabilities, and individuals entering the workforce. This initiative is intended to enhance the inclusivity of the pension system, ensuring that diverse life circumstances are acknowledged and supported.
Another significant aspect of the reform is the restructuring of the financial management of the Social Insurance Fund. The government plans to halt internal state borrowing and redirect reserves into a dedicated investment account, which is expected to improve the fund's sustainability and growth potential.
As the government prepares to finalize the parliamentary submission of the reform bill in September 2026, further consultations with social partners are anticipated. These discussions will be crucial in shaping the final details of the proposed reforms and ensuring that the interests of various stakeholders, including the business community represented by Keve, are adequately addressed.
The upcoming meeting between Keve and House Speaker Demetriou is expected to play a vital role in this process, providing a platform for the business sector to voice its concerns and recommendations regarding the pension reform. The outcome of these discussions will likely influence the broader dialogue surrounding the pension system overhaul as Cyprus moves towards a new era of social insurance reform.