Cyprus
Worked in Cyprus? Any pension you built up here is yours to keep and can usually be paid to you abroad — but you have to claim it; it won't start automatically. The full state pension age is 65, with early access from 63. On totalization, Cyprus has bilateral totalization agreements, so the years you worked here may combine with other countries you've worked in. Below is Cyprus's system at a glance and what expats should check.
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Overview
Cyprus operates a mandatory General Social Insurance Scheme (GSIS) under Social Insurance Law 59(I)/2010, providing earnings-related old-age, invalidity, and survivors' pensions on a PAYG basis, financed tripartitely by employees, employers, and the state. The statutory retirement age is 65, with early retirement available at 63 subject to actuarial reduction. As of January 2024, employee and employer contribution rates rose to 8.8% each (self-employed: 16.6%), with further scheduled increases every five years through 2039. The 2025 annual insurable earnings cap is €66,612. A 13th monthly pension instalment is paid each December.
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The second pillar comprises the Government Employees Pension Scheme (GEPS — now closed to new entrants since October 2011), occupational pension funds for semi-government bodies, and private-sector provident funds (defined contribution, lump-sum on exit). Provident funds are the dominant supplementary vehicle in the private sector, covering an estimated 22% of the workforce, with joint employee-employer contributions typically around 5–10% of earnings. The third pillar consists of voluntary private pension plans and individual savings products regulated under the IORP II Directive.
A comprehensive pension reform is underway. A Technical Committee has been reviewing the entire system — including social insurance, provident funds, private pension plans, and the minimum pension allowance — with reform legislation now expected to be submitted to parliament in 2026. Key proposals include redesigning the basic pension as a fixed per-month-of-registration amount, raising minimum pensions for low earners, and gradually reducing or abolishing the 12% early-retirement penalty by 2030. Cyprus's 2026 tax reform updated the foreign pension flat-rate regime: Cyprus tax residents may elect annually between normal progressive rates or a flat 5% on foreign pension income exceeding €5,000 per year.
~41–50% for average earner under current system (reform proposals target 64–66%)
Pillar 1: General Social Insurance Scheme (GSIS) — mandatory, PAYG, defined benefit; Pillar 2: GEPS (closed DB scheme for pre-2011 civil servants) + occupational provident/pension funds (DC, private sector); Pillar 3: Voluntary private pension plans and individual savings (IORPs, life insurer plans)
Bismarckian (earnings-related, contributory PAYG)
Employee
8.8
Employer
8.8
Self-Employed
16.6
Notes
Rates effective 1 January 2024 under Social Insurance Law 59(I)/2010 as amended. Total employee+employer+state rate: 22.8% (8.8% + 8.8% + 5.2%). Self-employed total: 21.8% (16.6% + 5.2% state). Voluntary contributors: 19.7% total (15% contributor + 4.7% state). Rates increase by ~0.5% per side every 5 years (employees/employers) and ~1% (self-employed) until reaching 10.3–10.7% (employees/employers) and 19.6–20.4% (self-employed) by 2039. 2025 annual insurable earnings cap: €66,612 (monthly: €5,551; weekly: €1,281). Social Cohesion Fund: additional 2% employer on total emoluments (no cap). Redundancy Fund: 1.2% employer. Industrial Training Fund: 0.5% employer. GeSY (national health): 2.65% on earnings/pensions up to €180,000/year.
Common questions
What is the retirement age in Cyprus?
The full state pension age in Cyprus is 65. Early retirement may be possible from 63. Deferring can raise your pension up to age 68.
Can I claim a Cyprus pension if I live abroad?
Yes. A pension you've earned in Cyprus stays yours wherever you retire, and can usually be paid into an overseas account once you reach pension age. It won't start automatically, though — you need to claim it, typically a few months in advance, through Cyprus's pension authority.
Do totalization agreements affect my Cyprus pension?
Cyprus has bilateral social-security (totalization) agreements. These can let you combine the years you worked in Cyprus with years in partner countries to meet a minimum qualifying period, so short stints aren't wasted. Which partners and rules apply depends on your own work history.
How is the pension system structured in Cyprus?
Bismarckian (earnings-related, contributory PAYG) Pillar 1: General Social Insurance Scheme (GSIS) — mandatory, PAYG, defined benefit; Pillar 2: GEPS (closed DB scheme for pre-2011 civil servants) + occupational provident/pension funds (DC, private sector); Pillar 3: Voluntary private pension plans and individual savings (IORPs, life insurer plans) It includes 8 schemes in our directory.