The message that Cyprus is entering a new era for its pension system has been sent by the Minister of Labour Yiannis Panayiotou.
Welcoming audiences to the 16th Pension Forum presented by AON, the Minister referred to the key points of the reform, emphasising that the goal is to create a modern, sustainable and socially fair model for the coming decades.
Before the end of the government's term, he committed, Cyprus will have "a comprehensive pension system."
According to Panayiotou, it will be possible to submit the bills to Parliament within the coming weeks, so that they can be approved by the end of 2025 and then proceed to be voted on. As he explained, the completion of this institutional framework is a priority for the government and a key commitment for the President of the Republic.
Improving salaries and pensions: "Directly linked"
The Minister noted that improving pensions cannot be understood independently from improving wages. As he said characteristically, "those who are low-paid today will also have a low salary in retirement." For this reason, the decisions taken today - although they may at first glance seem burdensome for organisations - strengthen the adequacy of pensions in the long term.
He also stressed that boosting wages is a prerequisite for upgrading the second insurance pillar. "For the second pillar to function effectively, adequate wages are required. Only in this way can employees truly utilise its benefits," he said.
Expansion of collective bargaining and strategy for the future
Panayiotou also referred to the planned conclusion of a comprehensive action plan for the expansion of collective bargaining. This development, he said, will substantially contribute to strengthening employee protection and stabilising the wage environment.
"The development of the economy must be reflected in the quality of life of citizens, including through the strengthening of wages," he noted, underlining the importance of social cohesion and long-term economic stability.
A comprehensive and sustainable system by the end of the government's term
In closing, the Minister assured that before the end of the government's term, Cyprus will have "a comprehensive pension system, sustainable and adequate for the coming decades", as foreseen in the President of the Republic's programme.
(Source: InBusinessNews)
