Pension reform to take effect in January 2027, labour minister says

The government aims to introduce pension reform on January 1, 2027, with legislation expected to be submitted to parliament in the coming days, Labour Minister Marinos Mousiouttas said. Speaking at a sponsors’ gala dinner organised by Dafni Troullon Sports Club, Mousiouttas said the reform would mark the first fundamental overhaul of Cyprus’ social insurance system in almost half a century. The main objective is to increase pensions, particularly the lowest ones, while recognising periods spent caring for children or relatives, living with a disability and studying when calculating pension entitlements. Mousiouttas said the reform would also end government borrowing from the Social Insurance Fund and introduce the gradual repayment of the state’s debt to the fund. The fund’s reserves currently stand at approximately €12 billion, he said, adding that future surpluses would be invested under a modern and transparent supervisory framework. He also said efforts were underway, through social dialogue, to strengthen the second pension pillar, including occupational pension schemes and provident funds, to provide supplementary income for future pensioners. Turning to broader government policy, Mousiouttas said responsible fiscal management and a resilient economy were allowing the government to invest in healthcare, education and social welfare. He also referred to the tax reform introduced in January 2026 and ongoing education reforms. On defence and foreign policy, he stressed that economic resilience, deterrence capabilities and Cyprus’ firm European and Western orientation were important factors in strengthening the country’s international position. Mousiouttas also praised the work of Dafni Troullon Sports Club, which was founded in 1952 and is celebrating its 74th anniversary this year. He highlighted the club’s women’s football team and its new Catch and Serve table tennis team, which finished third in the first Pancyprian Championship. The minister also acknowledged the role of Troulloi as a community near the dividing line, saying that supporting local sports clubs helped sustain community life and create opportunities for younger generations.