Cyprus Aims for Significant Pension Increase in 2026, President Announces

“Our next big goal is pension reform, with the aim of achieving a significant increase in pensions in 2026, starting in particular with low-income pensioners,” President Christodoulides said
President of the Republic, Nikos Christodoulides, has reaffirmed his determination to push ahead with major reforms without taking political cost into account, stressing that economic growth must translate into tangible benefits for citizens. Speaking in an interview with daily newspaper “Phileleftheros”, the President said the government’s next major objective is pension reform, with a clear target set for 2026.
“Our next big goal is pension reform, with the aim of achieving a significant increase in pensions in 2026, starting in particular with low-income pensioners,” President Christodoulides said. “This is the goal we have set, and based on the internal groundwork we are doing, it is an achievable goal and we will deliver it,” he noted.
The President described it as unacceptable that the minimum pension currently stands at around €510, noting that no one can live with such an income. He linked the planned reform to the country’s strong economic performance and responsible fiscal policy, which, he said, allow the government to strengthen social policies in a sustainable way.
In the interview, Christodoulides outlined five core government priorities: a strong and resilient economy, security, including foreign policy, defence and migration, reforms, transparency and accountability with a focus on combating corruption and improving citizens’ daily lives through better health care, education and housing policies. “This direction guides our decisions and our policies,” he said.
He placed particular emphasis on recent parliamentary decisions, calling the approval of education reform and tax reform “a very good day for Cyprus.” Both reforms, as he said, passed with strong majorities, despite earlier doubts about the government’s ability to secure legislative support.
Addressing reactions from trade unions, especially over the evaluation of teachers, the President made clear that the government would not retreat. He said reforms are designed in a targeted way to support families, the middle class and young people, and that the same resolve will continue.
On social spending, the President noted that social expenditure rose by 6% in 2024–2025, with a further 6% increase planned for 2026. He also highlighted investments in education, aiming for all primary schools to operate as optional full-day schools by 2028, and in health care, with more than €126 million allocated for new infrastructure.
Christodoulides also referred to migration policy, saying the situation has changed “radically,” with arrivals reduced by more than 80% and returns increased by over 60%. He said the “Cyprus model” is now discussed at European level.
At the same time, the President acknowledged ongoing challenges, including high electricity costs, housing and the cost of living. While inflation in Cyprus is now among the lowest in Europe, prices remain high, requiring measures to boost purchasing power and reduce basic expenses, he noted.
Finally, Christodoulides pointed to reforms in institutions such as the Legal Service and the Audit Office, as well as efforts to tackle organised crime.
“For the first time, cases are being systematically investigated where, for example, someone owns an expensive car while receiving a guaranteed minimum income,” he said, adding that such cases are now reaching the courts.
CNA/TNE/MK/2025