The government aims to submit the pension reform bills to the Council of Ministers by the end of 2025, as announced by Minister of Labour and Social Insurance, Yiannis Panayiotou.

According to the government’s timeline for pension reform, outlined by the Minister, the reform bills are expected to be submitted to the Council of Ministers and then to the House of Representatives before the end of 2025. Discussions in the relevant Parliamentary Committee will follow, with the bills being presented to the Plenary at the beginning of 2026.

Minister Panayiotou highlighted the constructive cooperation demonstrated by all parties involved and emphasized the importance of social dialogue, describing it as essential, useful, and substantive. He assured that the government will maximize its use in the reform process.

“Pension reform is a government priority and a social necessity that requires collective responsibility. The historic reforms ensuring the universality and fairness of the pension system were based on the readiness of Cypriot society to demonstrate practical intergenerational solidarity and on the maturity of the tripartite collaboration between workers, employers, and the state in reaching consensus decisions,” the Minister stated.

The primary objectives of the reform, as explained by the Minister, include strengthening the adequacy of pensions provided by the Social Insurance Fund, rationalizing the Fund’s investment policies, and enhancing the second and third pillars of insurance. These pillars work in conjunction with social insurance through provident funds and private insurance options.

The Minister noted the importance of gradually increasing the utilization of these supplementary insurance pillars, which currently have limited participation in Cyprus. At the same time, Mr. Panayiotou emphasized the aim of modernizing technological infrastructure and internal procedures.

He added that for the effective implementation of the pension reform, special attention will be given to fostering a culture of insurance planning, addressing undeclared and under-declared work to reduce insurance gaps, and improving wage adequacy to ensure sufficient insurance contributions.

Mr. Panayiotou explained that the government is working systematically toward these goals with the guidance and support of the International Labour Organization (ILO), which provides expertise and knowledge for evaluating the data, adopting best practices, and formulating well-founded recommendations.

As part of the government’s plan, the Minister added, an Interministerial Committee on pension reform will be established, led by the Ministry of Labour and Social Insurance, with the participation of relevant ministries and deputy ministries for coordination purposes.

The Minister further mentioned that in the coming period, in-depth dialogue will be conducted with social partners through the Labour Advisory Board, political discussions with parliamentary parties, and public consultations with citizens to thoroughly explore the challenges, opportunities, and prospects for making informed decisions.