Legislative bills to overhaul Cyprus’ pensions and social security system and ensure its long-term viability will be with the cabinet in 2025 before heading to the House for a vote, President Nikos Christodoulides said on Monday.

The president was speaking at the palace during an event to mark 60 years since the introduction of universal social security which he called “an important milestone for the homeland and for our people that we can justifiably be proud of”.

The government’s plan to reform the system will be preceded by the creation of an inter-ministerial committee under the labour minister. This will be on the table at the next cabinet meeting, Christodoulides said.

The finance minister, the deputy minister for social welfare, and the gender equality commissioner will also be on the reform committee, he said.

At the same time, he added, “a thorough dialogue and exchange of views” will be held with social partners represented on the labour advisory board, and a political dialogue will be held with parliamentary parties and the public.

Christodoulides said his government had the necessary political will to adhere to the set timetables needed for pensions reform.

“I am sure that with the constructive cooperation of all those involved, this ambitious goal will be achieved for the benefit of current and future generations,” he said, adding that it was a “historical responsibility” to lead the pensions system successfully into the next 60 years and beyond.

The legislation introduced in 1964, he said, had shown over the years the level of social cooperation between government, employers and unions.

Taking into account the facts of the time, Christodoulides said, the consistency that the newly-established Cypriot state demonstrated in implementing its obligations was “admirable and impressive”.

“Our country, therefore, 60 years ago guaranteed the social protection of employees’ income, instituted the mandatory payment of insurance contributions and ensured universal access to the benefits of the social insurance fund,” he added.

Christodoulides paid tribute to former president, the late Tassos Papadopoulos, who was labour minister in 1964 for his contribution to getting the job done and pushing the bill through parliament at the time.

“Even today, 60 years later, our country’s pension system continues to be an internationally positive point of reference,” he said.

Since then, he added, the system gradually developed and obligations have evolved and diversified and now it is time for reform and modernisation.

In recent months, he said significant improvements had been made and implemented such as the timely payment of the first state pension within one month of applying.

The duration of maternity leave was also increased by one month, he said, and the self-employed were included in the beneficiaries of parental leave. At the same time, bills were submitted to Parliament to increase the childbirth allowance and extend parental leave.

“More specifically, the upgrading of the social security system focuses on improving the adequacy of pensions and rationalising the investment policy, while simultaneously modernising technological infrastructure and internal procedures,” Christodoulides said.

A special emphasis is to be placed on the development of “an insurance culture” for timely retirement planning, on addressing undeclared and declared work to close gaps in the social insurance system and enhancing the adequacy of wages in a way that will increase social security contributions to the state.