Government spokesman Konstantinos Letymbiotis said on Thursday that talks on pension reform were “in full swing”, stressing that implementation remained on track for 2027.

“Today, discussions at the Labour Advisory Board continued, moving on to the substantive aspects of the government’s proposal, including issues concerning low-income pensioners and actuarial adjustment,” he said.

Letymbiotis added that Thursday also marked the beginning of a series of meetings between Labour Minister Marinos Mousiouttas and parliamentary parties.

Outlining the key objectives, Letymbiotis said the reform would provide greater support for low-income pensioners while ensuring the sustainability of the social insurance fund for future generations.

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“We designed, presented and implemented the tax reform, through which thousands of workers, families and citizens benefited through a reduced tax burden and a higher net income. We know, however, that a part of pensioners is not at income levels that allow them to benefit to the same extent from the tax breaks and the new model,” he said.

Letymbiotis added that the pension came to complement this effort by providing increased pensions and special support for low-income pensioners, thus ensuring that the benefit reached those in need more directly.

He said more than four in ten pensioners, or 51,664 people, were expected to receive increases of more than €100 per month once the reform was implemented.

“Particular emphasis is placed on the lowest pensions. For pensioners who currently receive up to 600 euros, substantial support is provided, with an increase already from the start of the implementation of the reform,” Letymbiotis said.

He described the reform as an essential part of a broader plan aimed at increasing disposable income and ensuring a fairer distribution of the benefits of Cyprus’ economic progress.

Emphasising that the reform was not limited to the level of pensions, Letymbiotis said that the reform sought to deal with “injustices and distortions that have been created over the decades”, responding better to the modern realities of work and family life.

This included provisions recognising periods spent outside the labour market because of care responsibilities, maternity and disability.

“In plain words, we are striving for a system that better recognises the real course of life and work of every citizen and ensures a more decent pension income,” he said.