Panayiotou on how much pensions are increasing following the new Cabinet decision

The Cabinet has decided to increase the basic part of the Social Insurance Fund's pensions by 5.94%.

In statements after the end of the 3 December meeting, the Minister of Labour, Yiannis Panayiotou, stated that "following a Cabinet in accordance with the provisions of the Legislation, the pensions of the Social Insurance Fund will increase from January 2025, by 5.94% in the basic part and by 1.49% in the supplementary part."

Specifically, he said, the monthly amount of the full basic pension increases from €483.77 to €512.50 and the minimum pension increases from €411.20 to €435.62, for beneficiaries without dependents. A total of 142,542 beneficiaries will benefit from this increase.

At the same time, he continued, the monthly amount of the social pension is increasing from €391.85 to €415.13. A total of 17,853 beneficiaries will benefit from the increase.

It is noted that the percentage of the increase in the basic part of pensions is calculated according to the increase in the average of basic insurable earnings between the two previous years, as determined through a relevant actuarial report.

"The amount of the increase in the supplementary part of pensions is adjusted by the percentage increase in the average consumer price index in the second half of 2024 compared to the corresponding average in the second half of 2023," explained the Minister of Labour.

It is noted that the increase in the basic part of the Department of Social Insurance pensions by 5.94% is the highest paid since 1996 and reflects the largest increase in the average insurable earnings of the last three decades.

According to Panayiotou, "the positive course of the Cypriot economy and the consistent implementation of people-centered government policy are bringing results that significantly improve the daily lives of citizens."

"The adequacy of pensions and salaries is gradually strengthening and this positive trend will continue," he concluded.

(Source: InBusinessNews)