The establishment of an Interministerial Committee for Pension Reform will be included in the agenda of the next Council of Ministers meeting, announced President Nikos Christodoulides.
In his speech at the commemorative event marking 60 years of universal social security, the President stated that the committee will operate under the leadership of the Minister of Labour and Social Insurance and include participation from the Minister of Finance, the Deputy Minister to the President, the Deputy Minister of Social Welfare, the Commissioner for Gender Equality, and the Commissioner for Citizens’ Rights.
“The Interministerial Committee will play a key role in ensuring the necessary intergovernmental coordination for pension system reform and will immediately begin work in this direction,” he said.
Dialogue and consultation
He added that a thorough dialogue and exchange of views will soon take place with social partners through the Labour Advisory Board, as well as political dialogue with parliamentary parties and a public consultation with citizens.
“A holistic and comprehensive discussion of the challenges, possibilities, and prospects of pension reform will lead to the adoption of the right decisions for the benefit of citizens,” he noted.
The President assured that the government has the political will to adhere to deadlines and implement the pension reform, expressing confidence in achieving the necessary collaboration to this end.
“I am confident that with the constructive cooperation of all stakeholders, this ambitious goal will be achieved for the benefit of current, future, and successive generations,” he stated.
Historical context and milestones
President Christodoulides highlighted that the 60th anniversary of the Social Insurance Law of 1964 is the most significant social milestone in the history of the Republic of Cyprus. At the time, the young Cypriot state fulfilled its constitutional obligation to guarantee the individual right to social security and establish a social insurance system.
He praised the efforts of the late Tassos Papadopoulos, then Minister of Labour and Social Insurance, whose contribution was pivotal in this historic development.
“Even today, 60 years later, our country’s pension system remains a positive international reference point, and the decades that have followed underscore the pride and satisfaction we rightfully feel,” he remarked.
Modernisation efforts
The President reiterated the government’s commitment to improving, modernising, and reforming the pension system, as outlined in its governance programme. The Ministry of Labour and Social Insurance has been actively working in this direction, he said.
In recent months, significant improvements have already been implemented, such as accelerating the processing time for benefit applications, ensuring the timely payment of the first instalment of statutory pensions within one month. Additionally, maternity leave has been extended by one month, and self-employed workers are now eligible for parental leave. Bills to increase childbirth allowances and extend parental leave have also been submitted to Parliament.
“With people and the improvement of their daily lives at the core of our policies, we are advancing pension reform, which will include, among other measures, the enhancement of the social insurance system and the utilisation of supplementary insurance pillars,” he stated.
Specific goals
The reform will focus on:
- Improving pension adequacy.
- Rationalising investment policies.
- Modernising technological infrastructure and internal processes.
The reform will also expand participation in occupational pension schemes and promote options for private insurance.
The President emphasised the importance of fostering an insurance culture for timely retirement planning, addressing undeclared or under-reported work to reduce coverage gaps, and ensuring sufficient wages to support adequate contributions.
The Ministry of Labour and Social Insurance is working systematically toward these goals with the guidance and support of the International Labour Organisation.
Legislative timeline
According to the government’s plan, the pension reform bills will be submitted to the Council of Ministers in 2025 and then to Parliament.
“Pension reform in Cyprus is a priority for the government. It is part of our electoral programme, part of the promises we made to the Cypriot people, and we will deliver. It is a social necessity requiring collective effort and responsibility,” he declared.
Looking to the future
Concluding his speech, the President stated that the government, recognising its historical responsibility, is committed to leading the pension system into the next 60 years of success, paving the way for future generations to celebrate 120 and 180 years of social security with pride.
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Source: CNA
