Newsroom
Cyprus may eventually consider increasing workers' contributions to the Social Insurance Fund as part of efforts to secure the future of the country's pension system, Labour and Social Insurance Minister Marinos Mousiouttas said on Wednesday.
Speaking about the government's proposed pension reform, Mousiouttas did not specify when such an increase might be considered, what conditions would need to be met or which groups would be required to pay more.
He nevertheless made clear that the government intends to increase pensions, while acknowledging the financial limits facing the state.
The minister said pension policy must be considered alongside Cyprus' existing financial obligations. He referred to €350 million in debt that must be repaid, as well as a further €1 billion liability linked to the economic crisis of 2013.
Demographic changes are also expected to place additional demands on the pension system. According to Mousiouttas, Cyprus is projected to have 40,000 more pensioners within the next five years, while continuing to record a low birth rate.
The government is currently proposing changes to the 12% reduction imposed on pensions for people who retire early. Mousiouttas reiterated that any reduction in the penalty would apply exclusively to the basic pension and would not affect the supplementary pension.
Labour Minister Marinos Mousiouttas says higher pensions are guaranteed but leaves open the possibility of increased worker contributions
Cyprus also faces growing pressure on its pension system as the number of retirees is expected to rise by 40,000 over the next five years
Cyprus may eventually consider increasing workers' contributions to the Social Insurance Fund as part of efforts to secure the future of the country's pension system, Labour and Social Insurance Minister Marinos Mousiouttas said on Wednesday.
Speaking about the government's proposed pension reform, Mousiouttas did not specify when such an increase might be considered, what conditions would need to be met or which groups would be required to pay more.
He nevertheless made clear that the government intends to increase pensions, while acknowledging the financial limits facing the state.
The minister said pension policy must be considered alongside Cyprus' existing financial obligations. He referred to €350 million in debt that must be repaid, as well as a further €1 billion liability linked to the economic crisis of 2013.
Demographic changes are also expected to place additional demands on the pension system. According to Mousiouttas, Cyprus is projected to have 40,000 more pensioners within the next five years, while continuing to record a low birth rate.
The government is currently proposing changes to the 12% reduction imposed on pensions for people who retire early. Mousiouttas reiterated that any reduction in the penalty would apply exclusively to the basic pension and would not affect the supplementary pension.
