Labour Minister Marinos Mousiouttas appeared on “Protoselido” to discuss his ministry’s 2026 agenda, highlighting minimum wage adjustments and a pension overhaul after decades without major change. He emphasized that pension reform stands as a key priority for both the President and the Ministry of Labour.
The Minister explained that discussions began under his predecessor in collaboration with social partners and EU experts. Intensive talks on various scenarios and parameters will continue throughout 2026, aiming to table a complete legislative package before Parliament by year-end. This reform requires legislative approval to take effect on January 1, 2027, necessitating broad consensus.
Low pensions drive reform design
When asked about including low pensions, Mousiouttas confirmed they form the reform’s foundational pillar. Planning starts there, based on actuary assumptions and scenarios that prioritize the Social Insurance Fund’s long-term viability for current and future generations.
The Minister stressed that the overhaul will certainly include increases for low pensioners alongside corrections to existing system distortions. Projections will consider data from 2026 onward over the next 50 years. He recalled the last major reform in 1981, hailed as revolutionary at the time, and expressed ambition for the new one to benefit citizens while ensuring system sustainability.
Acknowledging low pension realities
Responding to whether Cyprus pensions qualify as low, Mousiouttas stated that low pensions are indeed low. He underlined dramatic life changes since 1981, including crises, wars, and rising living costs impacting citizens. The Minister admitted no one can live on €450 or €500 monthly, with the goal that pensioners rely on their pensions rather than supplements.
Dual pillars: Pensions and welfare
Reform discussions will cover two core pillars, pensions and welfare funds, as interconnected issues for overall population coverage. Decisions will be debated with social partners through the Labour Advisory Board, comprising employers, unions, and state, with the first session under his presidency scheduled for January 9.
Minimum wage: Data-driven dialogue
Mousiouttas noted detailed explanations on minimum wage determination will be provided to partners, stressing the decision relied on specific data rather than arbitrariness. Discussions will also address related issues like hourly productivity, which has sparked reactions from both unions and employer groups.
The final wage decision appears high to employers and low to unions, yet represents a balanced solution safeguarding labour peace. He acknowledged predecessor Giannis Panagiotou’s strong foundation, noting the ministry inherits a high benchmark.
Mea culpa on past controversy
Addressing queries about the power cable issue and DIKO/Nikolas Papadopoulos political survival claims, Mousiouttas offered his mea culpa. He clarified it stemmed from his rapid shift from MP to Minister, reflecting purely personal views, and vowed not to revisit the topic.
Heavy jobs and adjustments in scope
On viewer questions about the so-called “12%,” the Minister described it as an actuarial adjustment to be discussed within reform. Issues like heavy professions and workers with serious health problems will be tabled, without jeopardizing overall fund viability.
Youth concerns and fund viability
Mousiouttas recognized youth uncertainty over low pensions driving them to private insurance. He recalled 2013 crisis impacts and noted the significantly increased elderly ratio burdening the system today. The Social Insurance Fund remains viable, and reform will review its investment policy for higher returns with minimal risk.
In closing, the Minister stated political parties will receive updates from initial stages to foster full awareness and substantive dialogue before the final bill reaches Cabinet and Parliament for approval.
Also read: €979 gross minimum wage starts today – is it enough?
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