A 1.46% pensions increase is expected to be granted from 1 July, according to calculations by the Union of Cypriot Pensioners (EKYSY), based on data from the PEO Labour Institute.
The Cyprus pension increase is expected following a rise in inflation during the first half of 2026 and would apply to existing basic and supplementary pensions, as well as the Social Pension.
Increase linked to Consumer Price Index
In a statement issued on Thursday, EKYSY recalled that under Social Insurance legislation, pension payments are adjusted from 1 July each year in line with changes in the Consumer Price Index.
The adjustment is calculated based on the percentage increase in the average Consumer Price Index during the immediately preceding six-month period compared with the average recorded during the final six months of the previous year.
If the increase is below 1%, no pension adjustment is granted.
Inflation exceeds 1% threshold
According to figures from the PEO Labour Institute, the average Consumer Price Index during the first half of 2026 increased by 1.46% compared with the average recorded during the second half of 2025.
As the increase exceeded the required 1% threshold, EKYSY estimates that pensions will rise by the same percentage.
Based on these calculations, the 1.46% Cyprus pension increase will apply to existing basic and supplementary pensions, as well as the Social Pension, from 1 July 2026.
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