Employers and unions in Cyprus split over retirement age
In Cyprus, employers’ organisations and trade unions failed to reach an agreement on a possible increase in the retirement age during discussions on pension reform planned to be introduced on January 1, 2027. This was reported by Cyprus Mail after a meeting of the labour advisory body.
Finance Minister Makis Keravnos said the reform must include protection mechanisms for times of crisis. He did not specify what exactly they would be, but stressed the need to ensure the long-term sustainability of the social insurance fund. According to him, the reform’s preparation is at its final stage, after which the document will be submitted to an expert for assessment.
Raising low pensions
The meeting, attended by Labour Minister Marinos Mousiouttas and social partners, discussed the financial parameters of the reform. The parties agreed to provide clarifications in the coming days if necessary in order to continue the procedure according to a specific timetable.
Keravnos noted that the first component of the reform focuses on raising low pensions while maintaining economic and budgetary balance. He also said that current workers pay contributions to the social insurance fund, from which pensions are paid to current pensioners and future payments are ensured.
More current news is available on the UA.News Telegram channel Telegram.
The proposal prepared by the labour ministry together with experts from the International Labour Organization was reviewed by the finance ministry. According to Keravnos, the ministry can support it without disrupting budgetary balance. At the same time, other proposals from employers and trade unions could change the total cost of the reform, which was recently estimated at €50 million per year.
Positions of the parties
Michalis Antoniou, director general of the employers’ organisation OEV, said the reform should not create risks for public finances. In his view, if contributions to the fund are increased, the retirement age should also be raised. This position was supported by Philokypros Rousounides, secretary general of the Cyprus Chamber of Commerce and Industry.
Representatives of the SEK, PEO and Deok trade unions, on the contrary, said that neither an increase in contributions nor a higher retirement age is negotiable for them. Alexis Alekou, deputy general secretary of the Pasydy civil servants’ union, said the organisation first expects clarifications from the two ministers. The parties are due to hold their next meeting on Thursday.
