Low-income pensioners in Cyprus could see increases of up to 50% under the planned pensions reform, according to Labour Minister Marinos Moushiouttas.
Speaking on Omega television, the minister said the changes would primarily benefit retirees on the lowest pensions, though the exact increase will vary depending on individual contribution histories.
Examples of expected changes
According to the minister, the lowest pensions currently range between €480 and €500. In some cases, these could increase by up to 50%, raising monthly payments to around €750 for eligible recipients with steady contribution records.
However, he stressed that increases will differ depending on employment history and insurance contributions.
Impact of the “small cheque” allowance
The reform will also affect recipients of the supplementary state support known as the “small cheque”, provided through the Deputy Ministry of Social Welfare.
Some pensioners currently receiving around €500 plus €220 in state support will not necessarily see a full 50% increase, as part of the allowance may be adjusted as pensions rise. Final combined income is expected to reach approximately €820–€830 in such cases.
Changes for early retirement at 63
Additional benefits are expected for those retiring at age 63, including reductions in the existing 12% pension penalty. The overall gain will depend on the final adjustment rate applied under the reform.
The minister also dismissed claims that the minimum pension could rise to €1,088 or even €1,500, stating that such levels would not be feasible without increasing contributions or raising the retirement age.
He said no such structural room currently exists within the system.
Timeline for reform legislation
The government aims to submit the pension reform bill for consultation with social partners during the second ten-day period of July, with discussions continuing through the summer.
The goal is to present the legislation to Parliament on September 20, with the minister confirming it will be tabled regardless of the outcome of ongoing negotiations.
Further consultations with political parties are expected ahead of parliamentary debate to clarify technical details and implications of the proposed reform.
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