Pension payments in Cyprus will be adjusted from 1 July 2026 following the introduction of the latest cost-of-living allowance, the General Accounting Office of the Republic has announced.
Although some recipients may see a reduction in their occupational pension, the overall net value of their combined pension payments is expected to increase.
Social Insurance pensions increase by 1.46%
Both the basic and supplementary components of pensions paid by the Social Insurance Fund will increase by 1.46%.
The adjustment applies from 1 July and will be reflected in pension payments made during July 2026.
Occupational pensions adjusted by 0.02%
Occupational pensions paid by the General Accounting Office will be adjusted upwards by 0.02%.
The change reflects an increase in the index used to calculate the automatic cost-of-living adjustment for 2025.
Why some occupational pensions may fall
Pensioners receiving payments from both the General Accounting Office and the Social Insurance Fund will receive the 1.46% increase in their Social Insurance pension.
However, they may see a reduction in the occupational pension paid by the General Accounting Office. According to the announcement, this is due to:
- the increase in the supplementary component of the Social Insurance pension, which negatively affects the amount of the occupational pension; and
- the recalculation of income tax.
Despite these adjustments, the General Accounting Office said the combined net pension amount will be positively affected by the cost-of-living allowance in July 2026.
