Cyprus pensioners see increased payouts beginning 2024

The Union of Cypriot Pensioners (Ekysy) has announced a positive development for pensioners across the island, as legislation came into effect on January 1, ensuring a 3.89 per cent increase in the basic part of pensions for beneficiaries of the Social Insurance Fund.

Beginning with the most significant change, the monthly amount of the full basic pension is set to rise from €465.65 to €483.77. Meanwhile, the minimum pension, applicable to those without dependents, will increase from €395.80 to €411.20. Additionally, beneficiaries of the social pension will witness a boost from €377.18 to €391.85 per month, significantly improving the financial well-being of retired individuals.

Ekysy said the increase is in line with the provisions of the legislation, which mandates adjustments to the basic pension component, benefitting a wide spectrum of pensioners. The move aims to provide economic relief to retired individuals who rely on these pensions for their day-to-day living expenses.

Furthermore, starting from the same date, the legislation introduced an additional mechanism known as the Cost-of-Living Adjustment (CoLA) for the supplementary part of the pension. This adjustment considers the variation in the average consumer price index during the second half of each year compared to the previous year’s second-half average.

In response to the announcement by the Cyprus Statistical Service (CSE) regarding the consumer price index movement in December 2023, Ekysy, in collaboration with the Cyprus Institute of Labour of PEO, calculated a CoLA of 2.48 per cent for the supplementary part of the pension. This move ensures that pensioners will see a proportional increase that aligns with the evolving cost of living.

The legislation extends its reach beyond the pension amounts, addressing the upper limit of weekly and monthly insurable earnings from January 1, 2024. Additionally, the assumed income of the self-employed and the value of the insurance unit will undergo revision. This comprehensive approach seeks to maintain the financial stability of the Social Insurance Fund and ensure that its benefits remain in step with the economic landscape.