The government approved a 5.94% increase in basic pensions, President Christodoulides announced Friday.
The cabinet met today to discuss several key measures, including a nearly 6 per cent increase in basic pensions, the establishment of an artists’ registry, mandatory mediation for disputes up to €10,000, strengthening the government’s advisory council, and modifications to the Rent-versus-Installment and Amalthea schemes.
In his opening remarks, President Christodoulides announced that the cabinet would hold “a lengthy session” at Troodos on 12 January to determine actions to be announced on 29 January as part of the government’s accountability and transparency framework. He stated this would allow the Cypriot society to know what the government plans to implement and monitor its daily progress.
The President highlighted the significance of the pension increases from the Social Insurance Fund, noting they are directly linked to the gradual enhancement of wage adequacy. He specified the increase at 5.94 per cent, describing it as particularly significant and reflecting the progress in the country’s economy, wages, and consequently, pensions.
Labour Minister Yiannis Panayiotou noted that it is the largest rise in basic pension rates since 1996. Starting January 2025, Social Insurance Fund pensions will increase by 5.94 per cent in the basic component and 1.49 per cent in the supplementary component.
The monthly full basic pension will rise from €483.77 to €512.50, while the minimum pension for beneficiaries without dependents will increase from €411.20 to €435.62, affecting 142,542 recipients. Additionally, the monthly social pension will increase from €391.85 to €415.13, benefiting 17,853 recipients.
Panayiotou explained that the basic pension increase percentage is calculated based on the rise in average basic insurable earnings between the previous two years, as determined through an actuarial report. The supplementary component’s increase is adjusted according to the average consumer price index increase during the second half of 2024 compared to the same period in 2023.
