Labour and Social Insurance Minister Marinos Mousiouttas has said that no pension will be reduced under the government's pension reform, with all pensions set to increase and the greatest support directed towards lower-income pensioners.
Speaking at a charity dinner organised by the Kaimakli Community Volunteer Council in Nicosia on Friday evening, Mousiouttas outlined key elements of the government's reform agenda.
Pension reform
Mousiouttas described pension reform as the most demanding pillar of the government's reform programme.
He reiterated that all pensions will increase under the new system, with the largest gains going to low-income pensioners.
According to the minister, the reform will significantly reduce the actuarial reduction applied to individuals who were forced to retire early.
For the first time, periods spent outside paid employment, including child-rearing, caring for a relative and periods of disability, will be taken into account when calculating pensions.
He said the change would help narrow the pension gap between men and women, which is linked to years many women spend away from the workforce while caring for children.
Tax reform already in force
The minister also highlighted the government's tax reform, which came into effect on 1 January 2026.
He said the changes are already affecting household budgets, noting that the tax-free income threshold has been increased and the system now better reflects the real financial burdens faced by families.
Deductions have also been introduced for each dependent child, as well as for rent payments and mortgage interest.
For young families with children, Mousiouttas said the reforms mean more disposable income remains in the household budget.
Education reform
Turning to education, the minister said the new teacher and school evaluation system was designed to provide support, meaningful feedback and professional development.
He added that children currently entering kindergarten deserve access to a modern and high-quality public education system in the years ahead.
Tribute to volunteers
Mousiouttas also praised the work of the Kaimakli Community Volunteer Council, saying it has supported families for nearly 60 years through its nursery, kindergarten and children's club programmes.
While the state develops policies, he said, volunteers build the foundations of a living society.
"The state must support volunteering without replacing it or taking it for granted," he said, adding that volunteers provide a level of personal care that no government budget can buy.
Source: CNA
