Cyprus Cabinet adopts measures to save Social Insurance Fund

The Cabinet approved a set of measures regarding the Social Insurance Fund (SIF) aiming to support the viability of the Fund up to 2050. Acting Government Spokesman Titos Christofides speaking after the Cabinet meeting chaired by President Demetris Christofias said that the Cabinet authorised Labour Minister to present the measures to the social partners, employers associations and trade unions.
The measures include a proposal providing for the increase of contributions up to 1.3% every five-year and this applies to both, employees and employers.
The Ministry of Labour and Social Insurance aims that the set of measures should be adopted by January 2009. The Ministry recommends the long term viability of SIF by increasing the contribution of employers, employees and the State through a scaled increase of 1.3% per five years in seven instalments. Additionally, as expected the proposal of the Ministry of Labour and Social Insurance would not change the right of employees for optional retirement at their 63rd year of age.