A crucial meeting between Labour Minister Marinos Mousiouttas and Finance Minister Makis Keravnos is expected to take place on Wednesday as the government seeks to finalise its long-awaited pensions reform bill and determine the scope of the state's fiscal capacity to support the proposed measures.
The government aims to complete the legislation by the end of the week and circulate it to social partners for consultation and review.
Following a meeting with President Nikos Christodoulides, disclosed by the president during an interview with ANT1 television on Monday evening, Mr Mousiouttas is expected to present the proposed reforms to the finance minister for approval of the financial provisions that would affect the state budget.
Reform in advanced stage
Mr Christodoulides said the government had reached an advanced stage in preparing the pensions reform package, indicating that some pension increases could amount to between €250 and €300.
The president said he would hold another meeting on Friday with Mr Mousiouttas and Mr Keravnos to continue discussions on the proposal.
"The primary objective of this pensions reform is a substantial increase in low pensions. Depending on the pension level, we are talking about €250 to €300 and so on. There are different formulas," Mr Christodoulides said.
He also expressed hope that parliament would examine the legislation without unnecessary delays.
"I hope that when it reaches parliament it will not be debated for six months at the expense of the Cypriot people. We are ready. Once it is submitted to the House there should, of course, be debate and parliamentary scrutiny," he said.
Consultations planned
As previously reported by Politis, two meetings of the Labour Advisory Body have been scheduled for 19 August and 28 August as discussions on the reform continue.
Speaking recently on the Matia stin Oikonomia podcast, Mr Mousiouttas said the government was not approaching the reform in a dogmatic manner and remained open to suggestions, provided they do not alter its core philosophy or jeopardise the sustainability of the Social Insurance Fund.
"We are not dogmatic. We are open to proposals," he said.
Pension increases and broader changes
According to the labour minister, the first visible outcome of the reform will be higher pensions.
He said increases could range from around 5% for some pensioners to as much as 55% for others, depending on factors including contribution levels, contribution consistency and the length of a person's working life.
Mr Mousiouttas said the reform would affect all major categories of pensions, including:
- Old-age pensions
- Disability pensions
- Widows' pensions
He added that changes are also planned for related benefits, with more favourable arrangements expected for beneficiaries.
The minister further indicated that the reform package will include additional measures intended to support pension growth over the longer term.
