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19 June, 2024
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Minister unleashes 4% boost for retirees

Pension reform revolution – Government's 2025 plan unveiled


In a significant move to enhance the well-being of pensioners, Labor and Social Insurance Minister Yiannis Panayiotou declared a nearly 4% increase in basic pensions for the upcoming year. The announcement, made during the 24th Session of the House of Elders, underscores the government's commitment to gradual improvements in pensioners' lives.

During his speech, Panayiotou highlighted the role of the Social Insurance Fund (CTA) in facilitating a sustained improvement in pensioners' earnings. The government plans to solidify this commitment with a forthcoming decree, aiming to implement the increase and address the needs of pensioners effectively.

Looking forward, the government envisions a comprehensive 2025 pension reform, grounded in social dialogue, scientific data, and adherence to international standards. The objective is to align the pension system with recommendations from the International Labour Organization and the Council of Economy and Competitiveness.

Panayiotou assured pensioners that the government is responsive to their expectations, emphasizing an expedited institutionalized pension payment period. Discussions are underway regarding the actuarial reduction of 12% for early retirement, with a proposal focusing on differentiation while safeguarding the CTA's viability and minimizing the impact on employee contributions.

Addressing concerns like the institutionalization of a widowhood pension for men, Panayiotou mentioned ongoing efforts to assess costs and make informed decisions without jeopardizing the economy.

Deputy Minister of Social Welfare Marilena Evangelou echoed these initiatives, emphasizing the government's dedication to elderly well-being. A national strategy and Action Plan are underway, focusing on social inclusion, healthy aging, and quality support services.

Under the Deputy Ministry, Social Welfare Services are implementing measures benefiting over 5,800 families, with a total expenditure of €25.3 million to meet basic and emergency needs. Additionally, various programs support low-income retired households, with over 22,000 families benefiting from a scheme totaling €90.7 million in 2022, including an Easter bonus in 2023.

Evangelou provided details on the government's accountability through inspections and financial support to NGOs and local authorities for elderly care programs. The Recovery and Resilience Plan outlines the creation and upgrade of 24-hour Care Centers, reflecting a holistic approach to elderly well-being.

[With information sourced from CNA]

Cyprus  |  pensions  |  retirement  |  government

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