The Minister of Labor and Social Insurance Yiannis Panagiotou announced the decision of the Council of Ministers to increase the pensions of the Social Insurance Fund (SIF) from January 2025 by 5,94% in their basic part and by 1,49% in the supplementary part. mentioning at the same time that the increase of the basic part of TKA pensions by 5,94% is the highest since 1996.
"The positive course of the Cypriot economy and the consistent implementation of the human-centered government policy produce results that significantly improve the daily life of citizens", he said and added that "the adequacy of pensions and salaries is gradually being strengthened and this positive course will continue".
Specifically, in statements after the House session, the Minister of Labor stated that the monthly amount of the full basic pension increases from 483,77 euros to 512,50 euros and the minimum pension increases from 411,20 to 435,62 euros for beneficiaries without dependent.
He added that in total, the beneficiaries of the statutory TKA pension amount to 142.542.
At the same time, Mr. Panagiotou said that the monthly amount of the social pension increases from 391,85 euros to 415,13 euros and concerns 17.853 beneficiaries.
He stated that the percentage of the increase in the basic part of the pensions is calculated according to the increase in the average of the basic insurable earnings between the two previous years, as determined through a relevant actuarial report.
He noted that the amount of the increase in the supplementary part of the pensions is adjusted by the rate of increase of the average of the Consumer Price Index in the second half of 2024 compared to the corresponding average in the second half of 2023.
He also said the 5,94% increase in the basic part of TKA pensions is the highest paid since 1996 and reflects the largest increase in average insurable earnings in three decades.
Citing TKA data, the Labor Minister said wages rose on average in 2023 more than they had in the previous 30 years, and this is leading to an increase in TKA pensions in their basic part by almost 6%.
When asked if the increase is foreseen by the legislation as a result of the salary increase, Mr. Panagiotou said that the legislation provides that this procedure is carried out in order to calculate the amount of the increase paid to the TKA pensions, adding that "from January 2025 the decision taken by the Council of Ministers during the previous period is being implemented, according to the which will be implemented in practice what is foreseen by the legislation".
He stated that in accordance with the implementation of the government policy to strengthen the adequacy of wages, the increases in wages identified through the insurance contributions to the TKA are of such a magnitude that they lead to the increase of the TKA pensions in their basic part by almost 6%.
"This increase is the highest paid since 1996," he noted.
He stated that "the increase found in wages according to the amount of insurable earnings for which insurance contributions are paid, is the highest in the last 30 years and this is an important step in the direction of strengthening the adequacy of wages and pensions so that to gradually reach the point set by the Government as a goal to achieve the strengthening of the adequacy of salary and pension benefits".
Asked if these increases will affect the amount of the low-income pensioner's allowance, Mr. Panagiotou said that it has already been decided, ahead of the 2025 budget, that these increases in TKA pensions will not affect the amount of the low pensioner allowance paid by the Deputy Ministry of Welfare.
