Taxes

Cyprus presented a pension reform proposal to trade unions and employers on Wednesday, targeting implementation from 1 January 2027. All 123,000 existing old-age pensioners would get an increase, with greater support for lower pensions, and the actuarial adjustment for retiring at 63 would drop from 12% to 7.5% on the basic pension component. The changes are not yet law, with further talks with social partners due on 28 August. For those living in or moving to Cyprus, the current Social Insurance Scheme continues to cover employees and self-employed people working legally on the island.

Labour Minister Marinos Mousiouttas said talks on pension reform are moving forward after chairing a meeting of the labour advisory board, made up of trade union and employer representatives, that lasted more than three hours. The board will now meet twice a week, reconvening on Monday and then Thursday. Mousiouttas insisted on the government timetable of passing the reform through parliament before the end of the year so it can be implemented from the beginning of January. Trade unions reiterated that their key concerns have not been allayed, and the minister declined to be drawn on outstanding disagreements or what might constitute a deal breaker, conceding only that stakeholders have different approaches.