Cyprus Approaches First Pillar Pension Reform; Bill Heads to Cabinet

Cyprus is moving its long‑awaited pension reform toward implementation, with the first‑pillar bill slated for cabinet approval this week after a legal review. The legislation will overhaul the Social Insurance Fund’s mechanics and state pensions, aiming for a January 1 rollout and the first benefit transfer on February 1, 2027. Stakeholders, including trade unions and employers, have raised concerns—particularly about the new definition of “earnings” that now includes dividends, rents and other property income, and the €68,000 maximum insurable threshold. The Chamber of Commerce warns the change could burden small and medium‑sized firms whose directors also hold shares. The government remains open to amendments post‑parliamentary tabling.