Cyprus Social Partners Reach Consensus on Pension Reform

Diko and the trade union SEK have reached common ground on Friday over mandatory provident funds and other key aspects of Cyprus’s pension reforms. Diko president Nicholas Papadopoulos said the changes must proceed to improve the quality of life for elderly citizens, stressing that reforms should not raise contributions or retirement age, nor cut benefits. He welcomed the planned increase in the basic pension, the halt of borrowing from the social insurance fund, and the introduction of mandatory provident funds. SEK general secretary Andreas Matsas agreed but warned that the union would not accept higher worker contributions or benefit cuts. He also urged the adoption of better European practices and highlighted that provident funds could supplement private‑sector pensions with minimal cost to small and medium enterprises through incentives.