Labour and Social Insurance Minister Marinos Mousiouttas has announced that legislation covering the first pillar of Cyprus's pension reform, the Social Insurance Fund, will be submitted to the House of Representatives during September.
Speaking at the annual festival of Xyliatos on Tuesday evening, on the eve of the feast of the community's patron saint, St Mamas, Mousiouttas described the pension reform as:
"The most important reform being undertaken by the Government this year."
He said the reform's key objectives are:
- Pension adequacy.
- Fairness.
- Long-term sustainability of the system.
According to the minister, the reform will increase all pensions, with the greatest support directed towards low-income pensioners.
Focus on tax reform
Mousiouttas also referred to the tax reform that came into effect on 1 January 2026, describing it as a fairer system featuring a higher tax-free threshold and deductions that recognise the real financial burdens faced by households.
These include:
- Children's education costs.
- Rent payments.
- Loan repayments.
"In practice, it means more money where families truly need it."
Education reform also on the agenda
Within the same reform framework, Mousiouttas referred to changes in the education sector, particularly the new system for evaluating teachers and educational performance.
According to the minister, the new model:
"Replaces a formal and one-dimensional process with a formative system"
that provides meaningful feedback and training while assessing the overall performance of each school unit.
Supporting mountain communities
Turning to regional development, Mousiouttas said the government of President Nikos Christodoulides has placed the development of mountain communities at the centre of its priorities through the National Strategy for the Development of Mountain Communities.
According to the minister, the goals include:
- Reversing rural depopulation.
- Creating employment opportunities.
- Supporting local production.
- Promoting sustainable tourism.
The aim, he said, is to make village life a realistic option for young families.
Importance of traditional festivals
Mousiouttas also highlighted the social importance of village festivals.
"The panayiri was always more than a celebration. It was the place where the entire region came together."
He said it served as a centre for commerce, social interaction and connections between villages and their emigrant communities.
"It was the most vibrant institution of social cohesion our country had."
Referring to the Xyliatos celebrations, he said the community was restoring that role through the feast-day events, including the festive vespers service for St Mamas, traditional performances, experiential workshops and a photographic and historical exhibition at the Museum of Rural Heritage.
Praise for Xyliatos
The minister also spoke warmly about Xyliatos, describing it as:
"One of those villages that wins you over from the first moment."
He noted its location at the entrance to the Pitsilia region, alongside its dam, picnic area and the Adelfoi forest, adding that it has been a destination for thousands of visitors for decades.
Source: CNA
