Pension Systems: Public vs Private Sector
August 14, 2026
The proposed pension reform in Cyprus has sparked questions about the pensions of public and private sector employees. Public employees pay lower contributions to the Social Insurance Fund, while private-sector employees have higher percentages. Additionally, public employees may receive larger pensions as they also participate in professional schemes. There are benefits as well, such as tax exemptions on lump-sum payments for public employees. This situation highlights existing inequalities in the pension system.