"No pension will be reduced," said the Minister of Labor and Social Security, Marinos Mousiouttas, adding that the pension system reform will result in increases for all pensions.
Mr. Mousiouttas was speaking at the Charity Dinner hosted by the Kaimakli Community Volunteer Council in Nicosia.
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“For nearly 60 years now, the Kaimakli Community Volunteer Council has kept its doors open to families. The infant care center, the daycare center, and the community preschool, as well as the children’s club,” he noted, adding that “behind these programs lies tireless and behind-the-scenes work—budgets that must be balanced, sponsorships that must be secured, and buildings that must be maintained.”
“This is the face of modern volunteerism: vision, but also attention to detail and adherence to the rules,” he emphasized.
At the same time, the Minister of Labor noted that “what you’re doing isn’t just social service. It is, in essence, employment policy,” emphasizing that “the reconciliation of work and family life, which Europe now recognizes as a priority, you were already putting into practice here long before it was officially named.”
In the same vein, he continued, “the government’s reform program is also moving in this direction, based on three pillars,” noting that the first and most challenging is the reform of the pension system.
At the same time, he emphasized that “no pension will be reduced,” adding that “the reform brings increases to all pensions, with the greatest support going to low-income pensioners, and it substantially mitigates the actuarial reduction for those who were forced to retire early.”
“For the first time, years spent outside of paid employment—such as raising children, caring for a loved one, or periods of disability—are being counted toward the pension,” noted Mr. Mousiouttas. “This is how, at long last, the gap between men’s and women’s pensions is beginning to close—a gap that arises during the years when a mother chooses, or is forced, to stay close to her child,” he added.
“The second pillar is tax reform, which takes effect on January 1, 2026, and which families are already feeling in their monthly budgets,” he noted, adding that “the tax-free threshold has been raised, and the system now takes into account the actual financial burdens of a household.”
The Minister of Labor also said that a tax credit has been established for each dependent child, as well as tax credits for rent or mortgage interest. “For a young couple with children, this means money stays where it’s needed most—in the family budget,” he emphasized.
Referring to educational reform, Mr. Mousiouttas noted that the new system for evaluating teachers and educational work was designed so that the evaluation serves as a form of support, providing meaningful feedback and professional development. “The children who are holding their first pencil in your preschool today deserve to find, in a few years, a modern and high-quality public school,” he noted.
“Policies, however, are designed by the state. A vibrant society is built by people like you. The state has a duty to support volunteerism—not to replace it, nor to take it for granted,” emphasized the Minister of Labor. “Because where the state reaches out with regulations and grants, the volunteer reaches out with personal care—something no budget can buy,” he added.
Source: CNA
