Labour Minister rules out pension cuts in reform package

Economy pensionsTop News Labour Minister rules out pension cuts in reform package Cyprus Pension Reform Moushouttas Rules Out Cuts Relevant News Aftermath of Colombia earthquake, in Pereira 12 August 2026 Labour Minister rules out pension cuts in reform package 12 August 2026 Appeal court quashes conviction over deadly Arakapas fire 12 August 2026 Angelos Angelodimou 12 August 2026 FacebookXWhatsAppEmailPrintViber Labour Minister Marinos Moushouttas has ruled out any reduction in pensions under the pension reform, after a Phileleftheros report that the government had been weighing cuts for certain categories drew a sharp response from the social partners, who said they would not even discuss it. Moushouttas was asked yesterday to comment on the report, which said the government had considered reducing the amount paid to the category known as high pensioners. The report referred to proposals under consideration rather than to decisions taken. The proposals concern the supplementary part of the pension, not the basic part. For every insurance unit a worker builds up in the supplementary part over a working life, they are entitled to an annual proportional pension equal to 1.50 per cent of the insurable earnings that exceeded the basic threshold. The longer someone works on a salary above the basic insurable earnings, the more units they accumulate, and each is multiplied by 1.50 per cent, raising the final monthly pension proportionally. That rate does not affect the basic part of the pension at all. The actuary had proposed cutting the rate to 1.25 per cent for those at the top of their insurable earnings, to fund an increase in low pensions. After the reaction that followed, both President Nikos Christodoulides and then Moushouttas described it as a scenario that would not be adopted. Phileleftheros understands the proposals under consideration were for a smaller reduction at a specific rate, and that these too now appear to have been dropped. Timetable Moushouttas said the text had gone to technocrats to be finalised following his meeting with Finance Minister Makis Keravnos and the President. He said he hoped the bill would be ready by Friday and that if not, the social partners would certainly have it before the Labour Advisory Body meets on August 19, with public consultation running in parallel. The discussion continues at the body’s next session on August 28, when everyone will have the full picture in front of them, he said. Unions say the deadline will not hold SEK General Secretary Andreas Matsas said yesterday that the target of tabling the pension reform bill in parliament on September 20 is unfeasible, pointing out that the social partners still do not have the draft legislation. Matsas repeated that the planning has to be comprehensive and take in the second pillar of the pension system, meaning provident funds. In his statements yesterday Moushouttas did not refer to a roadmap for the second pillar but spoke of a framework agreement. Subscribe to our Newsletter Latest News Aftermath of Colombia earthquake, in Pereira Appeal court quashes conviction over deadly Arakapas fire Perseid meteor shower peaks tonight over Cyprus under moonless sky Cyprus football clubs face frozen accounts over €1m tax debt Police find burglary tools in cyclist’s backpack in Larnaca Limassol hotels fill up as Larnaca counts its losses Man stabbed at Limassol home, flatmate and second man arrested Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.